Illinois Gaming Board Sends Cease-and-Desists to 65 Sweepstakes Casinos

Illinois’ gaming regulator issued cease-and-desist orders to more than 60 illegal online casino and online sweepstakes gaming platforms.

The Illinois Gaming Board (IGB) coordinated with the Illinois Attorney General’s Office to send the letters to 65 companies. Recipients are accused of violating Illinois’ gaming laws and are required to shut down their illegal operations inside state lines or risk facing legal action.

The new batch of letters represents a growing national trend of regulators hitting out at unlicensed online sweepstakes casinos.

Protecting market integrity

The IGB is in charge of regulating legal sportsbooks and retail casinos in Illinois. The state has not legalized online casino gaming.

Sweepstakes have operated within a legal gray area, since they allow but do not require customers to make purchases to play their online games. However, state regulators have grown increasingly opposed to their veiled system.

“Illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards, and are antithetical to the public’s interest in regulated gaming,” said IGB 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 noted that the only form of legal gambling in Illinois is that which is regulated by the IGB. That includes riverboat and land-based casinos, racetracks, sportsbooks, and video gaming entities holding the necessary licenses.

“The law is clear: Gambling in Illinois must be properly licensed and regulated,” Raoul 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.”

The fight for control

Companies that received cease-and-desist were given two options: block all Illinois residents from their platforms, or stop offering cash, gift cards, and prizes for casino-style games.

The majority of the language used across the different letters was consistent and reiterated that the only entities allowed to offer casino-style games were those authorized by the IGB.

Many states have found using cease-and-desists has proven to be an effective way of controlling the illegal gaming market. However, there are still exceptions to that rule. 

Director of the Maryland Lottery and Gaming Control Agency John Martin recently said during a hearing on an anti-sweepstakes bill in Maryland that about one-third of 75 entities that received cease-and-desist orders complied with their cease-and-desist orders. Maryland also is not the only state to experience issues with getting rid of black-market operators.

Alternatively, many states have passed bills banning sweepstakes casinos, while others are debating legislation. Those who support the bills argue that the operators abuse the free-to-play sentiment and end up acting as real online casinos.