Evanston is taking a middle path on the gambling-like kiosks popping up in local businesses: regulate them, rather than ban them outright. The City Council advanced a framework that would keep the machines operating while placing limits on where they can go, how many can exist and who can use them. The final decision is still ahead.
At last Monday’s meeting, the council voted unanimously to advance regulation of the sweepstakes machines, according to the Chicago Tribune. Some council members, including Jonathan Nieuwsma, Shawn Iles and Krissie Harris, separately backed an outright ban, while Clare Kelly proposed allowing existing machines to remain but blocking future installations.
The debate comes after years of complaints about the kiosks and a regulatory gap in Evanston. A city memo says Evanston banned traditional video gambling in 2009, but sweepstakes machines are not regulated under Illinois’ Video Gaming Act and therefore are not automatically covered by that prohibition. The city also says the Illinois Gaming Board has urged Evanston to ban the machines.
About 18 Kiosks Are Already Operating In Evanston
Evanston has about 18 sweepstakes kiosks in active use, with the machines spread across roughly three or four establishments, the Tribune reported. Most locations reportedly have more than two machines, which is one reason the proposed rules would impose a tighter ceiling. Players generally put cash into the machines and receive gift cards or credits that can be used to enter games, while profits are split between the leasing company and the business hosting the kiosks.
The draft framework would limit the city to 20 licensed machines and allow no more than two at any single establishment. It also proposes a $500 annual fee for each kiosk, a minimum age of 21, a free entry option without a purchase and monthly reports on entries, revenue and prizes.
The proposed rules would also prohibit internet connections, casino-style displays and random outcomes generated during play. Under the draft ordinance, operators would have to show that the machines promote the purchase of a bona fide product rather than simply function as an unlicensed slot parlor with a gift-card wrapper.
Small Businesses Say The Machines Help Keep Them Afloat
Current kiosk operators spoke in favor of regulation over a complete ban, and Matt Rodgers, who represents the majority of Evanston businesses operating the machines, said small businesses and gas station owners rely on the profits. The issue has added urgency for some owners after Evanston’s flavored tobacco ban took effect in 2024 and created what Rodgers described as a financial drain in his ward, according to the Chicago Tribune.
The Legal Gray Area Is The Whole Fight
The city’s proposal is local regulation, not a declaration that every sweepstakes-style game is legal under state law. The Illinois Gaming Board says Illinois gambling is limited to licensed casinos, racetracks, sportsbooks and video gaming licensees, and it has issued more than 60 cease-and-desist letters to operators of unlicensed online casino and sweepstakes platforms.
That state crackdown has focused primarily on online gambling, while Evanston is dealing with physical kiosks inside businesses. The city’s proposed ordinance attempts to draw a line around the machines by requiring licenses, product-based prizes, records and inspections, but the council could still revise the details before adopting anything.
The council is expected to consider a final decision on Aug. 24, according to the City of Evanston’s meeting schedule. Until then, the machines remain a lucrative business tool for some Evanston owners, a gambling loophole to critics and an unusually complicated item on City Hall’s to-do list.
