Chicago City Council panel advances ban on sweepstakes gambling machines

A Chicago City Council committee on Tuesday approved legislation to ban sweepstakes gambling terminals operating in a legal gray area across the city, dealing a setback to Mayor Brandon Johnson, whose administration had requested additional time to study the proposal.

The Committee on License and Consumer Protection passed the ordinance, introduced by Ald. Anthony Beale, via voice vote, the Chicago Tribune reported. The proposal now heads to the full City Council for consideration.

The ordinance targets so-called “sweepstakes” machines, which avoid gambling regulation by offering non-cash payouts. These machines are widespread in Chicago, particularly in gas stations on the South and West sides, but currently generate no tax revenue for the city.

The move comes amid broader debate among city leaders over how to regulate and tax gambling as Chicago faces ongoing fiscal challenges. A recently approved 2026 budget, passed over Mayor Johnson’s objections, includes provisions to legalize video gambling terminals as part of efforts to address budget deficits. Beale, a vocal critic of the mayor, led that initiative.

Although Beale has previously supported regulating sweepstakes machines, he now argues that banning them outright could pave the way for broader legalization of video gambling. He also warned that the state, which does not recognize sweepstakes machines, could intervene if Chicago continues to allow them.

“We’re turning a blind eye on an industry that has taken advantage of the South and West Side under the guidelines that these are Black and brown businesses,” Beale said prior to the vote. “The city of Chicago hasn’t gotten one benefit from sweepstakes machines. Not one.”

The Johnson administration opposed the measure during the hearing. Business Affairs and Consumer Protection Commissioner Ivan Capifali raised concerns about regulatory alignment and potential unintended impacts on communities. 

He also noted that the city has received relatively few complaints related to sweepstakes machines—21 in 2025 and 13 so far in 2026.

That claim was challenged by Ald. Stephanie Coleman, who said such machines are a frequent issue in her South Side ward.

Under the proposed ordinance, operators would face fines starting at $1,000 per machine, increasing to $2,000, and possible license suspension for repeat violations. A third offense could result in the revocation of a business license. The rules would take effect 10 days after final approval.

The debate also highlighted divisions among aldermen over gambling policy. Ald. Anthony Napolitano voiced frustration over the city’s slow progress on regulating video gambling, noting competitive pressure from nearby suburbs. Meanwhile, Sposato argued that banning sweepstakes machines would harm local businesses.

Ald. Monique Scott supported the ban but expressed concern about its impact on small businesses in her district, while also criticizing the administration for failing to provide clearer regulatory pathways.

“We talk about how the machines are illegal, but we give them a sticker,” she said. “We need more support from the administration and BACP to put these people online, to make them legal, and to make sure that African Americans have the same rights and equitable investment that others will have.”

Jason Lee, Johnson’s top adviser, has previously said that legalizing video gambling requires further study, including collaboration with stakeholders such as casino operators and ensuring equitable participation across communities.