Illinois gaming regulators have intensified enforcement against unlicensed online gambling by issuing more than 60 cease-and-desist letters to operators accused of violating state law. The Illinois Gaming Board, working with the Attorney General’s Office, targets online casino platforms and sweepstakes-style gaming sites that allow Illinois residents to participate in games of chance.
The letters require companies to block Illinois users or stop offering prizes. Regulators warned that continued operations could lead to civil or criminal penalties. Online games awarding money or items of value remain illegal unless conducted by licensed entities.
Regulators Outline Legal Boundaries
Legal gambling in Illinois is limited to licensed riverboat casinos, land-based casinos with owner licenses, racetracks with gaming licenses, sportsbooks approved under the Sports Wagering Act, and licensed video gaming operators. Online casino-style platforms fall outside these allowances.
“Illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards, and are antithetical to the public’s interest in regulated gaming,” said Illinois Gaming Board Administrator Marcus D. Fruchter. “The IGB will continue to evaluate all available regulatory and law enforcement tools to combat illegal gambling and to protect Illinoisans.”
Attorney General Kwame Raoul emphasized licensing’s importance. “The law is clear: Gambling in Illinois must be properly licensed and regulated,” he said. “Unlicensed gaming operators put Illinois consumers at risk and undermine the integrity of our regulated gaming market. We will continue to work with the Illinois Gaming Board to protect our residents and hold illegal operators accountable.”
Sweepstakes Casinos Face Enforcement
65 cease-and-desist letters targeted sweepstakes casino operators, including VGW, Modo, Fliff, High 5, and Stake. The board said these companies operate in violation of Illinois gambling statutes, despite relying on virtual currencies or promotional models.
The letters stated: “The IGB demands that you block Illinois residents from accessing your services or discontinue offering cash, gift cards, and other prizes through your service. Failure to do so may subject you, your affiliates, and business partners to civil or criminal penalties.”
VGW brands Chumba Casino, Luckyland Slots, and Global Poker received notices, except for the recently launched Luckyland Casino. Other operators include ACE, Crown Coins Casino, Gold Rush City, Jackpot Rabbit, JefeBet, McLuck Casino, Pulsz, Sportzino, WOW Vegas, and Zula Casino. Many recently exited Tennessee after similar orders, though ACE remains active.
Legislative and Market Developments
Lawmakers have proposed legalizing online casinos and are reviving those efforts with House Bill 4797, but sweepstakes platforms remain prohibited unless licensed. Sen. Bill Cunningham’s SB1705 seeks to classify sweepstakes casinos as gambling devices, making operation a felony. The bill remains active despite stalling last year.
Illinois also targeted prediction markets, sending letters to Kalshi, Robinhood, and Crypto.com to stop sports-related offerings. In October, sportsbooks were warned against launching similar products, prompting FanDuel and DraftKings to delay entry.
Industry groups warn that higher taxes on licensed operators could push bettors toward unregulated markets. The Sports Betting Alliance has challenged Chicago’s sports betting tax increase through litigation.
Source:
“Illinois Gaming Board and Attorney General’s Office Issue more than 60 Cease-and-Desist Letters to Illegal Online Casino and Sweepstakes Operators”, illinois.gov. Feb 5, 2026
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