Illinois Targets Illegal Online Casino Operations

Currently, Illinois residents do not have access to legalized online casino sites. That's because such legislation has not yet passed. With that said, residents do have access to offshore and sweepstakes casinos that are operating within the state's borders without impunity.

In support of Illinois licensed gambling operations, the Illinois Gaming Board has decided to go to war against illegal casino operations. That war started on Feb. 5, when the Illinois Gaming Board asked the Attorney General’s Office to send out more than 60 cease-and-desist letters. These letters were sent out to companies that are believed to be operating illegal online casinos and or sweepstakes casinos.

Again, this effort was made to protect Illinois' legal gambling operators. That includes:

• Licensed land-based & riverboat casinos


• Pari-mutual race tracks


• Sports betting operators licensed under the Sports Betting Act


• Video gaming sites operating under the Video Gaming Act

Requirements for Illegal Operators

The concern here is that allowing illegal casinos to operate without licensing goes contrary to making sure consumers are adequately protected. That's the primary reason that other gambling providers are required to go through a due diligence process to get proper licensing. There is no appetite for allowing illegal gambling operators to violate consumer rights with no recourse for the state.

According to Attorney General Kwame Raoul (in a press release):

“The law is clear: Gambling operations in this state have to follow the legally established framework and be regulated,” Raoul said in the release. He added that unlicensed operators expose consumers to harm and undermine the integrity of the regulated market."

At this point, illegal operators are being asked to take one of two actions:

1. Stop allowing access to people physically located within the state's borders. This would require the use of geo-fencing technology.

2, Stop offering prizes for casino play.

It's worth noting that some sweepstakes casinos operate more like social casinos. They don't offer prizes based on gambling activity, instead giving players free gold coins that they can use for free casino play. If they win, they only get more gold coins that can be used for more casino play. At no time are customers asked to spend money.

Based on Illinois state laws, offering real prizes for gambling activities is illegal if said activities are offered by unlicensed online operators.

For now, Illinois residents are being asked to avoid illegal online gambling sites. There is plenty of access available to gambling options being run by properly licensed operators.

The core issue seems to be the desire of residents to have access to legalized online casinos. To date, the Illinois legislature has failed to check that box. It's possible something could get done in the future, but it's not likely to happen in 2026. That has been made clear by previous attempts to have iGaming access brought to the House or Senate floors for consideration.

Illinois is not alone in this battle. It's the same battle that is being waged across the nation, largely against sweepstakes casinos.