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Today’s must-read: The spread of “sweepstakes” machines

Tuesday, Aug 7, 2018 - Posted by Rich Miller

* Dan Mihalopoulos

For years, Chicago Mayor Rahm Emanuel has been staunchly opposed to allowing video gambling machines at bars and restaurants in the city, hoping instead to land approval for one big downtown casino.

But unregulated devices that look and work almost exactly like video poker machines are popping up in places all over Chicago.

Thanks to these machines — often referred to as “sweepstakes” — the city has become studded with what effectively are mini-casinos in gas stations, convenience stores and even a laundromat.

Unlike the video poker machines that the state has regulated and taxed since 2012, the other machines don’t pay state or local government. And the state does not conduct background checks of sweepstakes machine operators or the businesses that install them, as is required for video poker licenses.

A WBEZ investigation found some bars that were deemed unfit for video gambling have simply installed sweepstakes machines instead.

Go read the whole thing. It’s a very well-written investigative piece. And these machines are not confined to Chicago.

       

17 Comments
  1. - wordslinger - Tuesday, Aug 7, 18 @ 9:56 am:

    Obviously, the state and legit licensed machine operators have an interest (aka money) in shutting the loophole.

    We could see in the near future some old-timey sledge-hammer smash-em-ups.

    Surprised there’s a market for it on North Harlem and 6500 W. North in Chicago. There are legit machines all over just a few blocks away in Elmwood Park, Melrose Park and Forest Park.

    I wonder if these loophole machines pay off better.


  2. - Texas Red - Tuesday, Aug 7, 18 @ 9:58 am:

    If you can’t tax it kill it !


  3. - Phil King - Tuesday, Aug 7, 18 @ 10:02 am:

    Slow news day huh?

    Meanwhile pensions are still bankrupting the state and there was a shooting spree in Chicago.


  4. - Precinct Captain - Tuesday, Aug 7, 18 @ 10:05 am:

    Phil King - Tuesday, Aug 7, 18 @ 10:02 am:

    Would you melt if you saw the sun?


  5. - wordslinger - Tuesday, Aug 7, 18 @ 10:11 am:

    Gee, Phil, you’re bangin’ your high-chair tray awfully early. Nap time already?


  6. - Rich Miller - Tuesday, Aug 7, 18 @ 10:13 am:

    Phil, I had a Chicago shootings post yesterday and you didn’t comment. I’ll be having another one today.

    Also, I’ve had a kabillion pension posts. And your last comment was August 1st, in which you made a ridic argument.

    So, spare me. Leave if you don’t like it.


  7. - City Zen - Tuesday, Aug 7, 18 @ 10:13 am:

    Gambling, uh…finds a way.


  8. - wordslinger - Tuesday, Aug 7, 18 @ 10:14 am:

    –If you can’t tax it kill it !–

    Such an anarchist. Legit business people who play by the rules should lose out to grifters? You think that’s “conservative?”


  9. - Cocoa Dave - Tuesday, Aug 7, 18 @ 10:20 am:

    They’ve had these sweepstakes slots in Florida for years. Many people love to gamble especially the seniors. In my humble opinion it’s just another way to redistribute wealth and not in a good way. They should be taxed like a regulated slot machine based on the revenue generated by the machine. It would probably doom the business model but that might not be a bad thing.


  10. - NoGifts - Tuesday, Aug 7, 18 @ 10:48 am:

    I read the article and I still don’t really understand how the two types of machines differ. You can play sweepstakes machines for free? How do they collect the money to give out prizes? Or everyone plays for no money, and the shop just uses it to attract customers for a potential prize?


  11. - Huh? - Tuesday, Aug 7, 18 @ 11:13 am:

    Is the mafia trying to cut into the legal video gambling business? Slots were a long time profit center for the mob.


  12. - OneMan - Tuesday, Aug 7, 18 @ 11:36 am:

    NoGifts, I think like a sweepstakes free entry you have to send away to get the ‘free play’.

    I have seen these just outside the city (the gas station next to the place I park outside of O’Hare has them), the explanation they offer of how it is legal seems vaguely logical.


  13. - a drop in - Tuesday, Aug 7, 18 @ 12:06 pm:

    ” wonder if these loophole machines pay off better.”

    It wouldn’t surprise me if the winnings didn’t get reported to the taxing authorities.


  14. - Anon-I-Guess - Tuesday, Aug 7, 18 @ 12:48 pm:

    If neighborhood bars had the same 5 machine set up that the burbs have, there is no reason that would prevent people from flocking to a downtown casino. Des Plaines is surrounded by video gaming munis and I can’t get a seat at a $25 blackjack table at 5:30 on a Sat.


  15. - anon2 - Tuesday, Aug 7, 18 @ 1:01 pm:

    Leader Durkin is right. This is gambling, and since it’s not authorized by state law, it’s illegal. It’s also competition for the legal machines that produce revenues for public purposes. I don’t’ know why the City or State has not acted to put an end to it.


  16. - Mama - Tuesday, Aug 7, 18 @ 9:13 pm:

    Maybe last weekend’s mass shooting is about the gangs wanting a cut from the “sweepstakes”.


  17. - Anon - Wednesday, Aug 8, 18 @ 8:53 am:

    There was one in the hot dog place near me in the 40th ward. Looked at it but didn’t try it because the directions were too confusing. Went back last night and it’s gone.


Sorry, comments for this post are now closed.


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