Chicago aldermen want to legalize and regulate sweepstakes machines to stop illegal gambling and increase city revenue. These video gaming machines, common in gas stations and liquor stores, operate in a legal gray area.
Ald. Jeanette Taylor (20th) said they are widespread in African-American neighborhoods and linked to crime. She suggested limiting stores to three to five machines with required security.
Ald. Felix Cardona (31st) noted the city loses money because these machines illegally pay cash. In response, the city plans to create rules to license and tax the sweeps games played on them, ensuring compliance and generating income.
A study by Christiansen Capital Advisors LLC, shared at a City Council Revenue Subcommittee meeting, found that legalizing video gaming under the current tax structure would not help Chicago much. The state keeps most of the revenue—$955 million of $1.1 billion—while cities, including Chicago, get only $164 million.
Chief Financial Officer Jill Jaworski said the tax setup benefits the state more. Chicago might earn $3 million in 2026 and $46.7 million by 2035. Ald. Jason Ervin (28th), Budget Committee Chair, called this a bad deal for Chicago and pushed for talks with the state to get a better share. Doubling the city’s tax could raise revenue to $38 million by 2027 and $54 million by 2028.
It doesn’t “take a rocket scientist to figure out” that the current tax structure is a “loser for Chicago … if we have to get four times as much action to break even,” Ervin said. “This is not possible. So the question comes down to, how do we find a reasonable ask between the state to make this all work?”
Ald. William Hall (6th), Revenue Subcommittee Chair, estimated it could bring $48 million in taxes, plus $291 million for the state.
Aldermen are looking at other ways to boost city funds alongside sweepstakes regulation without usurping the gains found elsewhere. The city’s finance team warned that this could hurt Bally’s Casino, cutting jobs and $4 million in yearly payments. As a potential solution, Ald. Gilbert Villegas (36th) suggested allowing sweeps machines only at O’Hare and Midway airports to avoid impacting the casino.
This could draw money from travelers. The city is also considering a tax on online sports betting, like DraftKings, as Ald. Taylor proposed to tap into digital gambling revenue. Mayor Brandon Johnson’s team is working with aldermen and state leaders to explore these ideas and balance revenue with economic impacts.
