A committee of the Chicago City Council has voted to approve legislation aimed at banning sweepstakes gambling terminals that operate in a legal gray area throughout the city. This decision represents a setback for Mayor Brandon Johnson, who had sought more time to evaluate the proposal.
The ordinance, introduced by Alderman Anthony Beale, was passed by the Committee on License and Consumer Protection through a voice vote, as reported by the Chicago Tribune. The proposal will now be forwarded to the full City Council for further consideration.
The legislation specifically targets machines known as “sweepstakes,” which evade gambling regulations by offering non-cash prizes. These machines are prevalent in Chicago, especially in gas stations located on the South and West sides, but they currently do not contribute any tax revenue to the city.
This action occurs amidst ongoing discussions among city officials regarding the regulation and taxation of gambling, as Chicago grapples with persistent financial challenges. The recently approved 2026 budget, which was passed despite Mayor Johnson's objections, includes measures to legalize video gambling terminals to help address budget deficits. Beale, a prominent critic of the mayor, spearheaded that initiative.
While Beale has previously advocated for the regulation of sweepstakes machines, he now contends that an outright ban could facilitate the broader legalization of video gambling. He also cautioned that the state, which does not recognize sweepstakes machines, may intervene if Chicago continues to permit their operation.
“We’re ignoring an industry that has exploited the South and West Side under the pretense that these are Black and brown businesses,” Beale stated before the vote. “The city of Chicago has not gained any benefits from sweepstakes machines. Not a single one.”
The Johnson administration opposed the proposed measure during the hearing. Business Affairs and Consumer Protection Commissioner Ivan Capifali expressed concerns about regulatory consistency and the potential unintended consequences for communities.
He also mentioned that the city has received a relatively low number of complaints regarding sweepstakes machines—21 in 2025 and only 13 so far in 2026.
This assertion was challenged by Alderman Stephanie Coleman, who claimed that such machines are a persistent problem in her South Side ward.
According to the proposed ordinance, operators of these machines would face fines starting at $1,000 per machine, escalating to $2,000 for repeat offenses, and could face license suspension. A third violation could lead to the revocation of a business license. The new rules would take effect 10 days after final approval.
The debate also revealed divisions among the aldermen regarding gambling policy. Alderman Anthony Napolitano expressed frustration over the slow pace of regulation for video gambling, citing competitive pressures from neighboring suburbs. Conversely, Alderman Sposato argued that banning sweepstakes machines could negatively affect local businesses.
Alderman Monique Scott supported the ban but voiced concerns about its effects on small businesses in her district, while also criticizing the administration for not providing clearer regulatory guidance.
“We claim these machines are illegal, yet we give them a sticker,” she remarked. “We need more support from the administration and BACP to legitimize these businesses and ensure that African Americans have the same rights and equitable investments as others.”
Jason Lee, a senior advisor to Mayor Johnson, previously stated that legalizing video gambling necessitates further examination, including collaboration with stakeholders like casino operators and ensuring equitable participation across communities.