Illinois Sends 65 Cease-and-Desist Letters to Sweepstakes Casinos
Illinois regulators have launched one of the largest sweepstakes crackdowns yet, ordering 65 operators to block residents or face potential civil and criminal penalties.
The Illinois Gaming Board (IGB), in coordination with the Illinois Attorney General’s Office, has sent 65 cease-and-desist letters to sweepstakes casino operators, alleging they are illegally offering online casino-style games to Illinois residents.
Operators that fail to comply could face civil or criminal penalties under state law.
Regulators Say Sweepstakes Sites Violate Illinois Law
The agency said the targeted sites are offering unlicensed internet gambling in violation of Illinois criminal statutes.
IGB Administrator Marcus D. Fruchter said:
“Illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards, and are antithetical to the public’s interest in regulated gaming.”
Attorney General Kwame Raoul added:
“The law is clear: Gambling in Illinois must be properly licensed and regulated. 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.”
The letters demand that companies either:
- block Illinois residents, or
- discontinue offering cash, gift cards, or other prize-based games
Illinois law only permits gambling through licensed riverboat or land-based casinos, racetracks, sportsbooks, and video gaming terminal operators. The state prohibits internet gambling sites that offer games of chance, although active legislation could change that.
What One Letter Says
The language across the notices appears standardized with minor variations depending on the types of games offered. Each letter lists the date of the alleged violation.
One example sent to Chumba Casino states:
“On January 12, 2026, the IGB observed that you offered Illinois users the ability to play slots, bingo, and table games (“Games”) through both the internet and mobile devices. The Games gave users the opportunity to win cash, gift cards, and other prizes in violation of Illinois law.”
“Illinois has only authorized gambling at riverboats or casinos holding an owners license, a racetrack holding an organization gaming license, an Illinois sportsbook holding a license under the Sports Wagering Act, or at an establishment licensed under the Video Gaming Act. 230 ILCS 10/3; 230 ILCS 40/1 et seq.”
Early Signs Enforcement Was Coming
There were early indications this year that enforcement actions were imminent.
In January, IGB told Sweepsy that unlicensed sweepstakes casinos and other illegal gambling were not welcome in the state.
Around the same time, Evolution’s live dealer portfolio and slots from subsidiary studios became unavailable on Stake.us in Illinois. Nearly 300 Evolution titles disappeared, along with games from smaller studios, including 24/7 Reels and Fat Panda.
Some reports suggested that Evolution’s games were unavailable in Illinois at Modo and Spinquest, but Gambling Insider couldn’t confirm that.
Furthermore, ToraTora Casino notified users that it was exiting the state on Jan. 10, citing regulatory considerations. However, the platform shut down entirely on Jan. 23.
Cease-and-Desist Results Are Mixed Nationwide
Illinois joins a growing list of states using cease-and-desist letters to pressure sweepstakes operators, but outcomes vary.
Some, such as Louisiana, Delaware, West Virginia, and Tennessee, have seen most major platforms exit following enforcement actions.
However, others have seen different results. During a recent hearing on a sweepstakes ban bill in Maryland, John Martin, Director of the Maryland Lottery and Gaming Control Agency, told lawmakers that the agency sent 75 letters, with only about one-third of operators complying.
In states where regulators have sent fewer letters, the success rate has also been low. For example, in Minnesota, separate letters from the gaming regulator and the attorney general to popular platforms like Stake.us, McLuck, LuckyLand Slots, and Fortune Coins have not led to their operations being halted in the state.
There have also been instances where sweepstakes casino operators have exited a state after multiple rounds of cease-and-desist letters, such as VGW’s LuckyLand Slots in Delaware and Stake.us in Maryland.
Broader Legislative Push Against Sweepstakes
The Illinois action comes as multiple states consider bills to explicitly ban dual-currency platforms or tighten state statutes to cover sweepstakes casinos, including Florida, Maine, Indiana, Tennessee, Maryland, Virginia, Iowa, Mississippi, Oklahoma, Louisiana, and Utah.
Lawmakers increasingly argue that prize-based “free-to-play” structures function as de facto online casinos operating outside licensing, tax, and responsible-gaming rules.
Image credit: Daniel Schwen via Wikimedia Commons (license)
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