On Wednesday, the Chicago City Council cast a 33-15 vote opposing a proposal aimed at banning sweepstakes machines citywide, reflecting the concerns expressed by Mayor Brandon Johnson’s administration.
Approximately 7,000 unauthorized sweepstakes machines are currently in operation across various establishments in Chicago, including bars, restaurants, convenience stores, and laundromats, with a noticeable concentration in neighborhoods on the South and West sides of the city.
The measure was put forth by Alderman Anthony Beale from the 9th Ward, who contended that removing sweepstakes machines would facilitate the quicker implementation of licensed video gaming terminals in bars and restaurants.
According to Beale, this transition could yield tens of millions of dollars in additional municipal revenue while opening up new avenues for local businesses.
Tax Revenue and Regulatory Concerns Take Center Stage
Detractors of the proposal raised doubts about whether swapping sweepstakes machines for licensed video gaming terminals would provide significant financial benefits to the city.
Alderman Jason Ervin from the 28th Ward argued that taxpayers would only receive a minimal portion of the gambling revenue.
“We’re tripping over $100 bills to pick up nickels,” Ervin remarked, emphasizing that the return from a video gaming terminal is a mere 5 cents for every dollar.
Sweepstakes machines bear a resemblance to video poker machines and function similarly. However, they issue tickets redeemable for cash or merchandise, placing them in a legal gray area that has eluded taxation by both city and state officials.
Beale argued that allowing sweepstakes machines to coexist alongside licensed video poker, blackjack, and slot machines creates an imbalanced market for businesses that follow gaming regulations.
Ivan Capifali, Commissioner of the Department of Business Affairs and Consumer Protection, informed council members that the department lacks the legal authority and resources to remove sweepstakes machines directly. Instead, the city often issues citations for unrelated violations at businesses hosting these machines.
Continued Scrutiny Over Video Gambling Expansion
Debates regarding the legalization or prohibition of sweepstakes machines have been ongoing at City Hall for over a decade, consistently failing to yield a sustainable policy outcome.
The matter reemerged during the latest budget discussions, particularly after the City Council sanctioned video gambling as part of Chicago’s 2026 spending plan, which took effect amid dissent from Johnson.
The city budget anticipates $6.8 million in revenue from video gambling. This forecast assumes that 3,300 bars and restaurants might install up to six machines each, leading to an estimated 19,800 terminals citywide.
By contrast, state legislation permits Bally’s permanent Chicago casino to operate as many as 4,000 gaming terminals.
Earlier in the week, Johnson and supportive council members abandoned an initiative to repeal the authorization of video poker and slot machines citywide.
Records indicate that the Illinois Gaming Board granted video gambling licenses on June 11 to several Mount Greenwood taverns, including Bar 106, Lawlor’s Bar, Hippo’s Bar, along with Cork and Kerry in Beverly, Half Sour in the Loop, and Eggsperience in Lakeview.
Those establishments must still secure city licenses before commencing any gambling activities.
Bally’s Raises Concerns about Market Effects
While municipal finance officials estimate that legalizing video gambling could reduce city revenue by $3 million based on consultant assessments, Beale expressed his belief that the change could potentially generate around $100 million annually for Chicago.
Over 285 bars and restaurants in Chicago have submitted applications for state approval to introduce video gambling.
In a letter addressed to council members on Wednesday, Bally’s Vice President Christopher Jewett cautioned that extensive video gambling in bars and restaurants could have economic repercussions for the company’s permanent casino project in River West, which is now slated to open in early 2027 after delays from the initial September timeline.
“The authorization of (video gaming terminals) at such a scale would constitute a profound change in the city’s gaming landscape,” Jewett stated.
He further indicated that Bally’s could halt annual payments of $4 million to the city required by the casino agreement established in 2022 if video gaming terminals become widely accessible throughout Chicago.
Jewett also noted that more than half of the 3,000 permanent jobs tied to the casino project could be at risk.
“If the City Council does not quickly reverse this misguided decision to approve (video gaming terminals), you risk jeopardizing all of these commitments,” Jewett warned. He added, “We are open to further discussions to address the damage caused by this decision. However, without prompt action from the City Council, we will have no option but to explore all available legal remedies.”
In a separate development, Alderman Bennett Lawson of the 44th Ward withdrew a proposal that would have instructed the Department of Business Affairs and Consumer Protection to expedite city licenses for video gambling following state approval.
The City Council has yet to address a proposal approved by the License and Consumer Protection Committee in March that would prohibit video gambling in bars and restaurants situated within six wards, challenging a longstanding policy that grants alderpersons control over licensing of establishments within their wards.