In early February, the gaming scene in Illinois, in the United States experienced significant turbulence.
The Illinois Gaming Board acted decisively in one of the largest regulatory crackdowns in the state. In collaboration with the Attorney General’s office, it issued over 60 cease-and-desist notices to online casino operators and sweepstakes platforms.
The goal is to eliminate the illegal market, which operates without a license. Authorities issued an ultimatum: either the companies stop serving local residents or face severe consequences. These include heavy fines and even prison sentences.
The central focus of the dispute is on so-called sweepstakes casinos. These platforms use a controversial dual currency model. Users use virtual currency to gamble, which they can later exchange for real money or prizes.
Illinois authorities say the this mechanism is not a clever legal loophole, but rather a disguised form of gambling.
State law is explicit: any game of chance involving prizes or money requires a license.
Any virtual casino operates illegally since the state only regualtes physical casinos, sports betting, as well as video terminals.
Attorney General Kwame Raoul highlighted that unregulated websites provide no guarantees of responsible gambling or data protection and undermine the integrity of the legal market.
The measure targets to protect two fundamental pillars: consumer safety, as well as tax revenue.
Therefore, the notified companies should now prove in writing that they have stopped operations or restricted access for Illinois residents.
This crackdown reflects a national trend in the United States.
States are starting less and less tolerant of competitors who do not pay taxes, as well as operate outside the rules with increased taxation on legal sports betting.
Now, the future of these sites in Illinois is uncertain: they either leave the state or attempt a risky legal battle.
Authorities say that platforms operating as casinos must face legal accountability, regardless of their label or marketing.
