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

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Illinois

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.

posted by Rich Miller
Tuesday, Aug 7, 18 @ 9:39 am

Comments

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.

Comment by wordslinger Tuesday, Aug 7, 18 @ 9:56 am
If you can’t tax it kill it !

Comment by Texas Red Tuesday, Aug 7, 18 @ 9:58 am
Slow news day huh?

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

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

Would you melt if you saw the sun?

Comment by Precinct Captain Tuesday, Aug 7, 18 @ 10:05 am
Gee, Phil, you’re bangin’ your high-chair tray awfully early. Nap time already?

Comment by wordslinger Tuesday, Aug 7, 18 @ 10:11 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.

Comment by Rich Miller Tuesday, Aug 7, 18 @ 10:13 am
Gambling, uh…finds a way.

Comment by City Zen Tuesday, Aug 7, 18 @ 10:13 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?”

Comment by wordslinger Tuesday, Aug 7, 18 @ 10:14 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.

Comment by Cocoa Dave Tuesday, Aug 7, 18 @ 10:20 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?

Comment by NoGifts Tuesday, Aug 7, 18 @ 10:48 am
Is the mafia trying to cut into the legal video gambling business? Slots were a long time profit center for the mob.

Comment by Huh? Tuesday, Aug 7, 18 @ 11:13 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.

Comment by OneMan Tuesday, Aug 7, 18 @ 11:36 am
” wonder if these loophole machines pay off better.”

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

Comment by a drop in Tuesday, Aug 7, 18 @ 12:06 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.

Comment by Anon-I-Guess Tuesday, Aug 7, 18 @ 12:48 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.

Comment by anon2 Tuesday, Aug 7, 18 @ 1:01 pm
Maybe last weekend’s mass shooting is about the gangs wanting a cut from the “sweepstakes”.

Comment by Mama Tuesday, Aug 7, 18 @ 9:13 pm
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.

Comment by Anon Wednesday, Aug 8, 18 @ 8:53 am

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