The Illinois Gaming Board (IGB), working with the Attorney General’s Office, has issued more than 60 cease-and-desist letters to unlicensed and unregulated online casino and sweepstakes operators.
IGB Administrator Marcus D. Fruchter emphasised the risks in a statement: “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.”
Among the operators targeted were Chumba Casino, Fluff, LuckyLand Slots, and Stake. Operators who ignore these cease-and-desist letters could face fines, criminal charges, and civil suits.
Attorney General Kwame Raoul reinforced the message: “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.”
Regulatory framework
According to the Illinois Gambling Act, it sets licensing requirements, operational rules, and enforcement powers for the IGB, the state’s primary regulator. Operators must undergo background checks of various stakeholders, disclose financials to prove stability, and comply with responsible gaming programmes among others.
Sports betting was legalised in 2019 under the Gambling Act’s expansion. However, online casinos remain illegal. Lawmakers have repeatedly introduced bills—such as HB 4797 this year—that propose a framework for legalisation, including job protections and gaming safeguards.
A national trend
Illinois is part of a broader crackdown. Last year, hundreds of cease-and-desist letters were issued nationwide, with states like New York and California banning sweepstakes operators outright.
In Indiana, the House has advanced a sweepstakes ban to the Senate, whereas in Mississippi, the Senate passed a prohibition bill, but it stalled after the House added online sports betting language in 2025.
For South Dakota, the Senate Taxation Committee recently advanced Senate Joint Resolution 504, which would put online sports betting on the 2026 ballot. Voters previously approved in-person betting in the historical city of Deadwood in 2020.
In Virginia, multiple gambling bills are moving forward, which include HB 161. It ties with online casino legalisation to legislative approval in 2026 and 2027. Down south, the state of Louisiana approved sports betting in 2020 on a parish-by-parish basis, with geofencing required in nine parishes. HB 72 could expand local referendums to cover casinos, horse racing, and video poker.
Meanwhile, in Alaska, it proposed HB 145 was proposed, which proposes the legalisation of online sports betting in 2025. It could allow up to 10 sportsbook licenses and a 20 percent tax on revenue.
Consumer protection
Unlicensed operators often lack responsible gaming tools like self-exclusion programmes, deposit limits, and age verification. Without these safeguards, consumers face higher risks of fraud, unpaid winnings, and data privacy breaches. Licensed operators, by contrast, must pay taxes and fees, submit to audits, and undergo inspections to ensure compliance and accountability.
Residents in Illinois, for instance, have several legal avenues and administrative resources to cover losses from unlicensed platforms, including investment fraud, cryptocurrency scams, and deceptive business practices.
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