Evanston committee weighs ban or regulation of sweepstakes gaming kiosks

The Evanston Human Services Committee spent the bulk of its April 6 meeting discussing Ordinance 34026, which would either ban or regulate sweepstakes-style electronic kiosks commonly found in convenience stores and other local businesses.

Rob Batty, who identified himself as a 25-year Evanston resident and said he works for Universal Gym Gaming, urged the city to consider regulated terminals rather than an outright ban and offered his company as a resource. "We have more than four locations in Evanston that have sweepstakes machines," Batty said, adding that the Post 42 American Legion currently operates four state-approved video gaming terminals.

Council Member Burns framed three principal paths: ban sweepstakes machines outright; regulate and tax them as they currently operate; or regulate them strictly so they cannot operate as "video gaming by another name." Burns read a list of proposed requirements he would seek if the committee leaned toward regulation, including that entries be tied to the purchase of a bona fide product (for example, a gift card), at least one free entry per person per day available on site, all results be predetermined (no outcomes generated at point of play), no random-number-generator or algorithm determine outcomes during play, prize pools be fixed and disclosed prior to operation, devices not simulate casino-style gameplay (no reels, spinning wheels, cards or dice), devices operate offline with no internet connectivity or remote modification, and operators provide monthly reports of entries, revenue and prize redemptions for city audit.

"All sweepstakes results must be predetermined prior to play and may not be generated at the time of user interaction," Burns said. He said strong oversight could allow Evanston to tax sweepstakes terminals while preventing them from functioning as video gaming.

Council Member Isles said she "sort of favors the ban aspect" and expressed concern about social harms and compulsive use. Council Member Rogers said she did not support an outright ban and emphasized the economic pressure on small businesses, saying she would prefer light registration or modest regulation to avoid putting neighborhood gas stations at a disadvantage.

City staff said the devices are currently present in Evanston and that enforcement practices are informal: police respond to complaints but there is no clear municipal licensing or penalty structure. The committee identified the police, law, health and finance departments as stakeholders for drafting enforceable rules. The group directed staff to produce two ordinance drafts — one banning sweepstakes machines and one that legalizes and tightly regulates them (including caps, license fees, and tax options) — and to return to the committee with research and draft language in time for discussion in June or July.

The committee did not vote on Ordinance 34026 on April 6; it concluded with direction to staff and a follow-up timeline.