Illinois Gaming Board issues cease-and-desist letters to unlicensed online sweepstakes casinos

Illinois Gaming Board issues cease-and-desist letters to unlicensed online sweepstakes casinos

The regulator has sent formal letters to more than 60 operators.

US.- The Illinois Gaming Board (IGB) has sent cease-and-desist letters to 65 online sweepstakes casinos operating in the state. The regulator said ordered them to immediately block Illinois residents from accessing their websites.

“Operators who fail to comply may be subject to civil or criminal penalties under Illinois law. Offering games of chance that award money or other items of value via the internet violates Illinois criminal law,” it said.

Online gambling is not regulated in Illinois, where gambling is only allowed at licensed riverboat casinos, land-based casinos, racetracks sportsbooks, and video gaming establishments. Illinois Gaming Board 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.

“The IGB will continue to evaluate all available regulatory and law enforcement tools to combat illegal gambling and to protect Illinoisans.”

Kwame Raoul, Illinois attorney general, 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.”

Representative Edgar Gonzalez Jr. recently introduced a bill that aims to legalise igaming in the state. House Bill 4797 proposes an Internet Gaming Act to legalise online poker, slots, table games and live dealer games.

Under the proposed framework, the Illinois Gaming Control Board would regulate the sector. Operators would pay $250,000 for an initial licence, with renewals at $100,000, plus $100,000 for management service providers and $75,000 for suppliers. They would be able to offer up to three skins.

The bill would allow for up to 51 online casino businesses. Online casinos would be taxed at 25 per cent of adjusted gross revenue, and all tax revenue would be deposited into the State Gaming Fund.

Gonzalez Jr’s last attempts failed. He introduced HB 2239 in 2025 and HB 3080 last year.

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