Unlicensed sweepstakes casinos are being targeted by the Illinois Gaming Board, with enforcement pressure rising as the state looks to push legislation for legalized iGaming.
Last Updated: February 10, 2026 at 8:37 PM UTC +1
Published: February 10, 2026 at 7:53 PM UTC +1
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The Illinois Gaming Board (IGB) continued to put pressure on unlicensed casino operators in the lead up to the 2026 Superbowl and after. 65 cease-and-desist letters have been sent to operators running sweepstakes casino-style games, in conjunction with the Illinois Attorney General’s Office.
Illinois is just one of other states that have ramped up enforcement against unlicensed operators offering gambling to players in the US. On February 5th, 2026, multiple formal letters were issued to sweepstakes casino operators. Sweepstakes casinos have been popular for letting players bypass their states iGaming laws, but puts them in a legal grey zone—one that can expose players to sudden shutdowns, frozen balances, or loss of access altogether. Sweepstakes operators argue that the model’s use of dual currency, one that gives players digital money that can’t be redeemed for cash and one that can be redeemed for prizes, does not cause any legal issues. However, others argue that this is just another form of gambling with a workaround.
More and more state authorities have been attempting to curb operators offering these games. As of now, sweepstakes casinos are illegal within the state of Illinois. Per the IGB’s statement,
“Illinois law strictly limits legal gambling to licensed riverboat casinos, land-based casinos holding an owners license, racetracks with organizational gaming licenses, sportsbooks licensed under the Sports Wagering Act, and video gaming licensees under the Video Gaming Act. Illinois law further prohibits the operation of internet sites that allow gambling.”
Some key names in the list include Stake, Chumba Casino, Global Poker, Zula Casino, and JuicyPopSlots operated by Bovada. This mirrors a broader enforcement trend across the U.S., where regulators are increasingly targeting platforms that operate in gray areas rather than formally licensed markets.
The enforcement posture seems to be firm for the future. Marcus D. Fruchter, Administrator for the IGB, said “The IGB will continue to evaluate all available regulatory and law enforcement tools to combat illegal gambling and to protect Illinoisans.” This comes on the back of a push for consumer protection, as unlicensed casinos can operate and facilitate services without player safeguards or protection rails due to a lack of compliance. The next best step, it seems, is to ensure players can’t access their sites.
However, there have been efforts towards legal online casinos for Illinois over the past year. Two bills filed by Senator Cristina Castro and Representative Edgar Gonzales were merged into HB4797 to open a pathway for legal iGaming within the state.
The US is a hotbed for iGaming legality and legislation right now. Last year saw Arizona send cease and desist letters to four offshore operators, and Michigan sent 12 of their own to operators. This was part of a larger wave in 2025 that saw more states take legal action against sweepstakes casinos using loopholes to bypass licensure requirements. New York, Nevada, and Connecticut are on that list, having even put legislation on the floor to prohibit the sweepstakes model by law. This does seem to be in part for progress towards legalized and licensed iGaming in the US. Maine legalized tribal online casinos last month, after a contentious build up to the bill passing, and other states look to follow soon.
A key part of the issue is that the markets can be polluted with a mix of licensed and unlicensed casinos, which could confuse and misdirect players about the legitimacy of where they deposit money and play. While enforcement is indeed ramping, the vast number of black market operators could make the task tougher to tackle. Not to mention, some players prefer black market casinos due to the lack of taxation on wagers and winnings, essentially being turned towards illegitimate options to maximize their winnings. However, like Maine, the framework for online casinos’ licensing seems to be following in step with the European model, including displays of their authority’s seal and RNG certification/testing.
Expect enforcement in the US to ramp even further as more states make way for their own legal iGaming. Using the sweepstakes model is no longer a safe bet to participate in or offer unlicensed gambling.
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