Sandwich votes to ban sweepstakes machines

The Sandwich City Council has voted to ban sweepstakes machines – which look like slot machines but are unregulated and untaxed – from operating in the city.

“It provides fairness to those who have legal gaming in our community,” said Sandwich Mayor Todd Latham, who had proposed banning the machines after discovering they were operating in one Sandwich business. “I still don’t understand even looking at the sweepstakes machines what you could win on the deal. It’s very unclear. I think it’s just simply misleading and not something that benefits our community.”

During the Jan. 20 Sandwich City Council meeting, City Council members voted to amend the city’s regulations regarding video gaming to prohibit sweepstakes machines. The business with the sweepstakes machines will have to remove them in order to keep its gaming license.

In the amendment, sweepstakes machines are defined as any standalone, table top, or similar mechanically, electrically or electronically operated device in which, upon payment, a participant is automatically entered into a sweepstakes or similar promotion.

The participant has the option to reveal the results of entry into said sweepstakes or promotion via a display mimicking slot machines, poker, keno, bingo, or any form of a printed ticket or otherwise, for cash or merchandise as a prize.

”Any such device shall be considered a sweepstakes machine regardless of whether a coupon for a product or service is provided in exchange for the payment,” according to the amendment.

As Sandwich city attorney Cassandra Gottchalk noted, the Illinois Gaming Board considers the sweepstakes machines to be illegal. The Illinois Gaming Board regulates the state’s gaming industry.

“This is in line with what would be best for the city,” she said. “There are some class action lawsuits by consumers against these sweepstakes companies because people use them thinking they are typical video gaming terminals and they are not in fact typical video gaming terminals.”

The city collects a fee for each video gaming terminal in operation. Last year, the annual fee for each video gaming terminal increased from $75 to $125.