Illinois gaming regulators issue over 60 cease-and-desist orders over illegal gaming allegations

The Illinois Gaming Board has targeted the operators of more than 60 online gaming apps and websites that the agency believes are violating state laws by offering real money gaming without a license. The batch of cease-and-desist orders demands that the recipients discontinue accepting paid entries or wagers from people in Illinois and threatens criminal recommendations for non-compliance.

The Illinois Gaming Board (IGB) announced its latest enforcement actions consisting of 65 cease-and-desist orders on Feb. 5. Prominent recipients include both offshore gaming channels and websites that offer casino-style, sweepstakes-based online games.

The announcement states that the orders were sent "in conjunction with the Office of the Illinois Attorney General." The orders denote that the IGB believes the recipients "are offering games of chance over the internet that award money or other things of value without the required licensure, in violation of Illinois criminal law."

For that reason, the orders demand that the targeted companies essentially geofence Illinois out of their addressable markets. 

"Accordingly, the IGB demands that you block Illinois residents from accessing your services or discontinue offering cash, gift cards, and other prizes through your service. Failure to do so may subject you, your affiliates, and business partners to civil or criminal penalties."

While Illinois is home to licensed online sports betting, there is currently no legal route for the best online casino apps to offer their games in the state. Legislators in Springfield have been active in backing up the IGB's actions on this issue. So far, no legal online casinos, including PayPal casinos found in states like Pennsylvania, Michigan, New Jersey, and West Virginia, exist.

Illinois has two-year legislative sessions, beginning in odd-numbered years. At the beginning of the current session, Illinois Sen. Bill Cunningham introduced a bill that would make sweepstakes casinos explicitly illegal.

However, SB1705 has not seen any movement since April 2025. That was when the legislation was re-referred to the Illinois Senate Assignments Committee.

The IGB is moving on this issue without the language in Cunningham's bill, though. Cunningham's bill would give prosecutors in the state additional leverage to pursue criminal charges related to unlicensed gaming.

From the participation of the Illinois Attorney General's office in the cease-and-desist orders, such prosecution could happen based on current statutes. That would depend on whether prosecutors are confident in their ability to gain a conviction, though.

Illinois is also weighing the issue of whether to allow residents to access promotions like the DraftKings Casino bonus. That debate has been separate from the stricter classification of sweepstakes casinos, but so far, neither item has received much consideration in the Illinois Capitol. 

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The IGB's orders demand a response independent of any action from the attorney general's office or legislature. Recipients of the orders could begin geofencing out Illinois players soon.

Derek Helling