The status of Evanston’s “sweepstakes” machines is still undecided after the City Council deferred confronting the issue of regulation versus a complete prohibition. These gaming kiosks fall into a legal gray area in Illinois gambling laws. Though video gambling machines have been prohibited within city borders since 2009, sweepstakes machines operate under a legal loophole. They bypass direct state gambling laws, claiming to be “promotional” games.
Sweepstakes machine players exchange winnings for gift cards or credits, not cash. These machines skirt regulations outlined in the Illinois Prizes and Gifts Act, as they do not require purchases for entry. However, most machines necessitate payment, resembling gambling, which officials say breaches the law. Evanston’s memo from Health & Human Services Director Ike Ogbo indicates these machines defy state gaming regulations and tax requirements due to the use of gift certificates.
Municipalities across Illinois, including Chicago, have outlawed these machines, viewing them as exploitative entities circumventing regulated gambling frameworks. Despite the complexities, Evanston continues to deliberate their fate as the machines remain in operation at various locations, including a Citgo gas station.
Two Illinois municipalities, Elmwood Park and Dolton, permit the operation of sweepstakes machines, according to Ogbo’s memo. However, Elmwood Park does not issue licenses or have active kiosks.
Many Evanston business owners oppose a complete ban. They argue these machines generate additional revenue, with profits split between the machine leasing company and the host venue. In a recent City Council meeting, a 4-2 vote favored regulating these machines rather than banning them. Proposed by Ald. Bobby Burns, new regulations would impose a $500 annual licensing fee per kiosk, limiting Evanston’s machine count to 20 at any time, with a maximum of two per location.
Burns emphasized that the regulation ensures these machines offer a free entry option, likening it to sweepstakes where no purchase is necessary. However, the regulation vote fell short of the required majority, postponing a final decision to the next meeting.
Ald. Matt Rodgers supported regulations, representing affected business owners. Rodgers highlighted the economic challenges local businesses face, especially concerning competitive gas prices and revenue. He advocated sensible regulation to maintain oversight while preserving business operations. On the contrary, Ald. Shawn Iles, alongside Ald. Clare Kelly, supported a total ban, citing the social implications and potential harm the machines could bring, comparing Evanston to similar communities that have banned such operations.
Business manager Adriana Vital represented various owners opposing a ban, urging that an outright prohibition would strain businesses already affected by recent flavored tobacco bans. Vital argued that sweepstakes machines provided critical revenue compensating for lost profits due to prior legislation.
The decision on sweepstakes machines will be revisited in the upcoming City Council meeting scheduled for July 27.