Chicago City Council Rejects Ban on Sweepstakes Machines

CHICAGO – Chicago alderpeople voted 33-15 to reject a proposed ban on sweepstakes machines operating across the city.

The vote keeps a major gray-market gambling issue unresolved as city officials weigh unpermitted machines, licensed video gambling, casino revenue and enforcement limits. Approximately 7,000 sweepstakes machines operate in Chicago businesses, including bars, restaurants, gas stations, laundromats and convenience stores.

The machines are concentrated on the South and West sides and have operated for years in a legal gray area. They resemble video poker machines and function in similar ways, but offer tickets redeemable for cash or merchandise rather than direct gambling payouts.

Ban Fails Amid Revenue and Enforcement Debate

Ald. Anthony Beale, who sponsored the proposed ban, argued that removing sweepstakes machines would clear the way for more licensed video gambling in bars and restaurants. He said regulated terminals could generate tens of millions of dollars in new revenue for Chicago while supporting businesses that follow city and state rules.

Opponents warned that the financial trade-off may not favor taxpayers. Ald. Jason Ervin said Chicago receives only a small share from licensed video gaming terminals, arguing that the city could lose more than it gains if a major expansion disrupts other gambling revenue streams.

Business Affairs and Consumer Protection Commissioner Ivan Capifali told alderpeople that his department lacks both the authority and resources to directly shut down businesses offering sweepstakes machines. Instead, city officials often cite those businesses for other code or regulatory violations.

Video Gambling Adds Pressure to Chicago’s Casino Plans

The latest vote follows Chicago’s decision to allow video gambling as part of its 2026 spending plan, a move adopted over Mayor Brandon Johnson’s objections. The city budget relies on $6.8 million in revenue from video gambling, based on thousands of bars and restaurants adding terminals.

City projections assume 3,300 bars and restaurants could offer up to six machines each, creating a possible total of 19,800 new terminals. That would far exceed the 4,000 gaming positions permitted at Bally’s permanent Chicago casino under state law.

Bally’s has warned that widespread video gambling in bars and restaurants could harm the city’s permanent casino project in River West, now expected to open in early 2027. The company said a large-scale rollout could put casino jobs, annual payments and other commitments at risk.

Gray-Market Machine Fight Remains Unsettled

The Chicago dispute reflects a broader national fight over sweepstakes-style gambling products and whether they should be banned, regulated or treated separately from licensed gaming. A similar proposal in Massachusetts lost momentum after a sweepstakes ban bill faced growing resistance.

For Chicago, the issue is now tied to several competing pressures. Licensed video gambling could bring new revenue, but alderpeople remain divided over how much money the city would actually collect and whether the expansion could weaken the casino deal.

The rejection of the ban does not create a final policy for sweepstakes machines. It leaves the current gray-market environment in place while city officials continue to face questions over enforcement authority, local licensing and the future shape of gambling in Chicago.

The next stage will depend on whether alderpeople revive a ban, push for a regulatory structure or focus instead on implementing licensed video gambling. For now, Chicago has chosen not to remove the machines, even as the city prepares for a wider gambling expansion.

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