Heat a large Dutch oven over medium-high heat. Remove casings from sausage. Add sausage, onion, and the next four ingredients (onion through jalapeño) to pan; cook 8 minutes or until sausage and beef are browned, stirring to crumble.
Add chili powder and the next 7 ingredients (chili powder through bay leaves) and cook for 1 minute. Stirring constantly. Stir in wine, tomatoes, and kidney beans, bring to a boil. Cover, reduce heat, and simmer for 1 hour, stirring occasionally.
Uncover and cook for 30 minutes, stirring occasionally. Discard the bay leaves. Sprinkle each serving with cheddar cheese.