For months, debate over the controversial proliferation of “sweepstakes” machines in Evanston has divided aldermen as to whether or not the gambling-like kiosks should be allowed to remain and be regulated or be banned entirely.
While many neighboring municipalities have banned them, Evanston City Council at its July 27 meeting decided that allowing and regulating them is a better bet.
Video gambling has been banned within the city’s limits since 2009. However, officials in other municipalities view these so-called sweepstakes machines as operating inside a legal gray area relative to state gambling laws.
Sweepstakes machines work by having players convert their cash into gift cards or credits they can later use as game entries, which circumvents Illinois law by not necessitating a direct purchase to enter.
However, the machines often require payment, which is why many officials say they remain skeptical of their legality.
In Evanston, many small business and gas station owners have said they often rely on profits from the machines.
Profits are split between the company that leases them and the business owner responsible for operating the kiosks, per previous reports.
“People picture this as being a gambling parlor or something along those lines, and that’s not what this situation is,” said Ald. Matt Rodgers, 8th, whose ward represents the majority of businesses in Evanston that operate these types of machines.
“If this Council decides to vote this down, I hope somebody’s coming with something for these people, because we just keep taking away their livelihoods. We keep taking money out of their pockets and making it so that they can’t do business here.”
Rodgers’ comments referenced the flavored tobacco product ban that went into effect in the city in April 2024.
The decision to ban those products has caused financial drain for many small business owners in his ward, Rodgers said, adding a ban on sweepstakes machines would do more of the same.
“If we’re all about economic development and doing things to support our businesses, I guess gas stations and convenience stores aren’t part of that mix,” Rodgers said.
Several current kiosk operators in the city attended the July 27 Council meeting to speak in favor of regulation over a complete ban, staying late into the night to hear the final verdict.
“I think licensing something that’s unregulated by any other entity is probably not a great practice,” said Ald. Tom Suffredin, 6th.
“[But] we’re here at 11:40 [p.m.], basically holding their business’s future in our hands…so I would respectfully suggest that we not vote to ban them tonight, and come back with a well-thought-out top of the agenda plan for how we will allow these.”
If not, Suffredin added, “let’s vote to ban them, but let’s do it at 7 [p.m.] rather than doing it to these people at this time of night right now.”
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According to Evanston Health & Human Services Director Ike Ogbo, about 18 sweepstakes kiosks are in active use within the city, spread across “three to four establishments.”
Regulations would impose an annual licensing fee of $500 for business owners to operate the kiosks and limit the number of machines in operation to 20 at a given time and no more than two per establishment, according to the ordinance.
Most of the establishments that host the machines now have more than two, Ogbo said.
Ald. Clare Kelly, 1st, said that while she isn’t looking to “undermine existing businesses and revenue that they’ve been relying on,” the proliferation of sweepstakes kiosks remains a heavy concern.
Kelly said she would be most comfortable amending the regulation ordinance by adding in a clause that could “grandfather in the existing ones and ban them going forward.”
“[Regulation] offers them a path forward,” said Ald. Juan Geracaris, 9th, speaking over Zoom.
“This vote is introduction, [and] our next meeting is not until almost a month from now, so we do have time if we want to add things to the regulation.”
Ultimately, Council members moved to advance regulating the machines in an unanimous vote following a discussion of changes to the current ordinance.
Earlier in the meeting, three aldermen — Ald. Krissie Harris, 2nd, Shawn Iles, 3rd, and Jonathan Nieuwsma, 4th — voted in favor of an ordinance banning the machines outright.
A final decision on regulating sweepstakes machines is expected back on the agenda at the next City Council meeting scheduled for Aug. 24.