Evanston Delays Decision on Sweepstakes Machines

Evanston’s City Council has once again postponed a decision regarding the regulation or ban of ‘sweepstakes’ machines. These gaming kiosks operate in a legal gray area in Illinois gambling laws. Although video gambling machines have been prohibited since 2009, sweepstakes machines have skirted the ban due to their classification as ‘promotional’ games.

Sweepstakes machines allow players to convert winnings into gift cards or credits for more plays. The Illinois Prizes and Gifts Act permits these machines as no purchase is required for entry. However, payments are often needed to play, creating a situation akin to gambling, as noted in a memo from Evanston Health & Human Services Director Ike Ogbo.

The gift certificates or coupons used instead of cash bypass state regulations, including those of the Illinois Gaming Board. Therefore, these machines sidestep requirements in the Illinois Video Gaming Act, according to Ogbo’s memo.

Many Illinois municipalities, including Chicago, have banned these machines, viewing them as exploiting unregulated gambling frameworks. Despite legal murkiness, Evanston struggles to prevent installations of these machines in local gas stations and convenience stores.

The machines are a profitable venture for business owners, splitting revenues with leasing companies. At a July 13 meeting, the Council voted 4-2 to regulate rather than ban sweepstakes machines. Proposed by Ald. Bobby Burns, the ordinance introduces a $500 annual fee for operation and caps the number at 20 machines citywide, with a limit of two per establishment.

Ald. Burns emphasized the importance of ensuring the machines don’t operate under false pretenses of gambling, advocating for options that enable free entries, similar to mall vehicle sweepstakes. However, with three absent aldermen, the vote lacked the majority to finalize the ordinance, deferring a decision to the next City Council meeting.

Ald. Matt Rodgers, favoring regulation, expressed concerns about the adverse impacts on small businesses if a total ban was enforced. He highlighted challenges faced by business owners amid economic conditions, suggesting sensible regulations to facilitate oversight without undue burdens.

Conversely, Ald. Shawn Iles supported a ban, stressing social costs associated with sweepstakes kiosks, and noting that similar communities prohibited them. Ald. Clare Kelly also shared concerns about potentially harming small businesses but opposed the machines’ proliferation.

Adriana Vital, managing a CITGO gas station, represented several business owners at the meeting, urging Council members to reconsider an outright ban. The machines were installed partly to recover from revenue losses due to a flavored tobacco ban, enacted in April 2024.

Vital expressed that a ban could further impact business revenues, stating, ‘This time we want to say that we are against this ban you guys want to implement.’

The ordinance concerning sweepstakes machines will return for consideration at the next City Council meeting on July 27.