Adam Roarty Editor
Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioThe Illinois Gaming Board (IGB) has issued 65 cease-and-desist letters to sweepstakes casinos operating in the state, including major companies such as VGW, Modo, Fliff, High 5, and Stake.
In an official statement posted on the IGB’s website, along with the letters, the board says that sweepstakes casinos are operating in violation of Illinois law. The state law limits legal gambling to licensed riverboat casinos, land-based casinos holding an owner’s license, racetracks with organizational gaming licenses, sportsbooks licensed under the Sports Wagering Act, and video gaming licensees under the Video Gaming Act.
It ends the letters by stating, “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.”
Illinois currently prohibits online casinos, although lawmakers have proposed legalizing platforms with a new bill introduced earlier this week.
Even if the legislation passes, sweepstakes casinos, which do not hold gaming licenses, would remain prohibited under the law. Operators could apply for licenses, but the companies targeted have not followed this path in any other states.
Major Operators Targeted
The IGB has attempted to include all the major sweepstakes casino platforms. VGW’s brands Chumba Casino, Luckyland Slots, and Global Poker all received letters, except for the recently launched Luckyland Casino.
Other companies that were sent letters include:
- ACE
- Crown Coins Casino
- Fliff
- Gold Rush City
- High 5 Casino
- Jackpot Rabbit
- JefeBet
- McLuck Casino
- Modo
- Pulsz
- Sportzino
- Stake
- WOW Vegas
- Zula Casino
Many of the same companies received the same orders in Tennessee recently and pulled out of the state. ACE, however, remains active.
Lawmakers Target Companies With Legislation
In addition to sending cease-and-desist orders, Tennessee is among more than 10 states to introduce legislation explicitly banning virtual currency gambling platforms.
Sen. Bill Cunningham introduced a bill in Illinois last year that sought to include sweepstakes in the state’s definition of a gambling device. SB1705 would make it a felony to operate a sweepstakes casino, with violators facing up to 3 years in prison and fines.
The bill cleared the committee referral and was actively discussed in the Senate Executive Committee last year, but has made no progress since April. It remains active and could be revisited in this legislative session.
IGB Also Targeting Prediction Markets
In addition to targeting sweepstakes casinos, Illinois has also made several efforts to prevent prediction market platforms from offering sports markets. Lawmakers this week introduced a new bill that would explicitly ban sports event contracts.
Illinois was one of the first states to demand that prediction market platforms stop offering sports markets to its residents. The IGB sent letters to Kalshi, Robinhood, and Crypto.com in April last year. The platforms remain active in the state, however.
In October, the IGB also warned sportsbooks about launching prediction market platforms. FanDuel and DraftKings have refrained from launching their platforms in the state.
Illinois Attorney General Kwame Raoul said his office will continue working with the IGB to eradicate illegal gambling from the state. He stated, “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.”
Sportsbooks have warned that the state’s increased taxes on licensed gambling companies risk sending more users to unregulated markets. The Sports Betting Alliance (SBA) filed a lawsuit against Chicago over the city’s new tax on sports betting, which adds to the per-bet fee and higher tax rate the state has introduced in the last two years.
