Chicago Debates Over 7,000 Gaming Machines and Casino Plans

Chicago is at a crossroads. City Hall is grappling with suffocating debt and looming budget deficits, while the historical baggage of corruption still looms over current gambling debates. At the heart of the issue is how the city can capitalize on gambling to address its pension load. Joe Ferguson, former Inspector General of the city, uses clear words to criticize the handling of legalization so far, calling it incoherent. He even compares the City Hall's current actions to the rackets of the past.

The current discussion centers on three forms of gambling: the large-scale Bally's casino project, legal video gaming terminals, and the legally ambiguous sweepstakes machines. The latter are ubiquitous in the city, found in laundromats, gas stations, and bars, without the city profiting significantly from them. The council debate shows how deep the divide is between the desire for regulation and the need for quick revenue. These machines are a staple of daily life for many, particularly on the South and West sides.

Numbers and facts

A Chicago City Council panel voted 33-15 on June 17, 2026, to reject a ban on these sweepstakes machines. In doing so, the council followed the course of Mayor Brandon Johnson’s administration. Estimates suggest that approximately 7,000 of these unpermitted machines are operating in businesses across the city. Alderman Anthony Beale, who authored the proposed ban, called the measure a slam dunk to speed up the transition to licensed devices. He argued that licensed video gaming terminals could mean tens of millions of dollars in new revenue for the city.

On the other hand, Alderman Jason Ervin warned against hasty steps. He believes that allowing video gambling to operate in every bar in Chicago would be a bad deal for taxpayers. He used the striking image that the city is tripping over hundred-dollar bills to pick up nickels. This disagreement is currently blocking a clear fiscal line that Chicago desperately needs given its financial emergency.

Background

Chicago's historical heritage in gambling is complicated. While illegal betting flourished for decades, state-sanctioned gambling is a relatively recent development. The flagship project is the agreement with Bally's to build a casino and entertainment complex. Joe Ferguson points out that the deal should have received more detailed oversight from the City Council back in 2022. The city cannot afford mistakes given its current debt load.

"Chicago cannot afford incoherence on this important fiscal and social issue. We can do better. And because of our fiscal moment, we must." - Joe Ferguson, former Inspector General of Chicago

Sweepstakes machines exploit a legal loophole by claiming they are not purely gambling devices, as they are often linked to product sales or promotions. This makes enforcing bans or taxes difficult as long as there is no state or city-wide clarity.

Why it matters for German players

The situation in Chicago is very reminiscent of the problems with the so-called black or gray market in Germany before the 2021 State Treaty on Gambling. Today, German players enjoy protection through the GGL (Joint Gambling Authority of the States) that one can only dream of in Chicago. While 7,000 unlicensed machines stand in gas stations there, it is clearly regulated in Germany who receives a license. The 2021 Treaty ensures that providers must be on the whitelist to operate legally. The deposit limit of 1,000 euros per month and the stake limit of 1 euro per spin for online slots are protective measures that enable social control.

In Chicago, however, there is no central monitoring system like the German LUGAS system. Players there are often at the mercy of the operators of unlicensed machines. For German users, this means: stick to providers with a German license to have legal certainty. US conditions with thousands of uncontrolled devices in residential areas often lead to social problems that German regulation aims to minimize.

What it means for GGL-licensed casinos

For licensed German online casinos, such reports from the USA are a confirmation of their business model. Clear regulation creates trust among customers and protects operators from unfair competition from illegal providers. The GGL whitelist is the most important tool for keeping the market clean. While politicians in Chicago argue about whether 7,000 illegal machines should be tolerated, the German system offers legal stability that enables long-term investment. The focus on player protection and addiction prevention is no longer a point of discussion in Germany, but a basic requirement for market access.