On Wednesday, the Chicago City Council voted 33-15 against a proposal aimed at banning sweepstakes machines throughout the city. This decision came after Mayor Brandon Johnson's administration expressed concerns regarding the potential impacts of such a ban.
Currently, around 7,000 unregulated sweepstakes machines are in operation across various businesses in Chicago, including bars, restaurants, gas stations, convenience stores, and laundromats. The highest concentration of these machines is found in the South and West Side neighborhoods.
Alderman Anthony Beale of the 9th Ward introduced the proposal, arguing that removing sweepstakes machines would expedite the introduction of licensed video gambling terminals in local bars and restaurants. Beale suggested that this transition could generate tens of millions of dollars in revenue for the city while also creating more opportunities for local businesses.
However, opponents of the proposal raised doubts about whether replacing sweepstakes machines with licensed video gambling terminals would provide significant financial benefits to the city. Alderman Jason Ervin from the 28th Ward pointed out that taxpayers would only receive a small fraction of the gambling profits, stating, “We’re tripping over $100 bills to pick up nickels,” referring to the minimal return from video gaming terminals.
Sweepstakes machines function similarly to video poker terminals but operate in a legal gray area by issuing tickets redeemable for cash or prizes. Consequently, neither the city nor the state collects taxes from these machines.
Beale argued that allowing both sweepstakes machines and licensed gaming terminals creates an unfair competitive landscape for businesses that adhere to gaming regulations. Ivan Capifali, the Commissioner of the Department of Business Affairs and Consumer Protection, informed council members that the department lacks the authority and resources to eliminate sweepstakes machines directly, often citing businesses for unrelated municipal violations instead.
The debate over the legality of sweepstakes machines has lingered at City Hall for over a decade without reaching a conclusive policy. The issue gained renewed attention during recent budget discussions and following the City Council's approval of video gambling as part of Chicago's 2026 budget plan, despite Mayor Johnson's objections.
The city's budget anticipates $6.8 million in revenue from video gambling, projecting that 3,300 bars and restaurants could install up to six machines each, resulting in nearly 19,800 terminals across the city. In comparison, state law permits Bally's permanent Chicago casino to operate up to 4,000 gaming terminals.
Earlier this week, Johnson and some council members abandoned their attempt to overturn the authorization of video poker and slot machines citywide. Records show that the Illinois Gaming Board approved video gambling licenses on June 11 for several Mount Greenwood taverns and other establishments, which still need to secure city licenses before commencing gambling activities.
While city finance officials estimate that legalizing video gambling could reduce municipal revenue by $3 million based on consultant findings, Beale remains optimistic, predicting that the change could yield around $100 million annually for Chicago. Over 285 bars and restaurants in the city have submitted requests to state regulators for permission to offer video gambling.
In a letter to council members, Bally's Vice President Christopher Jewett cautioned that extensive video gambling in bars and restaurants might impact the financial viability of the company's permanent casino project in River West, which is now expected to open in early 2027 following delays.