Illinois Sweepstakes Crackdown: Only 3% Comply After 65 C&D Letters in Two Weeks

Last February 5th, the Illinois Gaming Board (IGB) surprised the industry by issuing 65 cease-and-desist letters targeting operators of illegal gambling and sweepstakes casinos. State legislators say that the targeted platforms offer games of chance that award money “or other things of value without a proper gambling license, which is a requirement under state laws.  Regulators call on operators to immediately stop their services and restrict local access to these platforms.

However, only two sites have updated their platforms' T&Cs—Jumbo 88 and Jefebet—while the rest continue to operate, ignoring IGB’s calls.

Only 2 Sweepstakes Casinos Have Complied

In an IGB press release, Illinois Gaming Board Administrator Marcus D. Fruchter explained that illegal gambling exists in the state, and they’re holding them accountable. Over 60 letters were released last February 5th, and the language used was bold and clear: operators must stop offering these games, and restrict local players from accessing the sites. 

Mr. Fruchter added that illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards”. He then added that their operations are “antithetical to the public’s interest in regulated gaming”.

However, out of over 60 respondents, only two platforms have complied: Jumbo 88 and Jefebet.

As of February 19th, Jefebet has added Illinois to its list of restricted countries, joining California, Connecticut, Delaware, Hawaii, Idaho, Kentucky, Louisiana, Maryland, and a handful of other states.

Interestingly, Rolling Riches has also updated its T&Cs and restricts Illinois, even if it’s not included in the regulator’s enforcement list.

While the state’s regulator has warned that failure to comply could lead to civil or even criminal penalties, most platforms in the list have not budged or stopped their operations.

Mixed Results for Cease-and-Desist Letters Against Sweepstakes Casino Operators

Illinois’ experience with its cease-and-desist letters isn’t surprising. Nationwide, these letters alone don’t deliver results and immediate market withdrawals.

A few states, such as West Virginia and Tennessee, have had relative success in their campaigns, with over 40 sweepstakes casino platforms ending their services after receiving their letters. Maryland has struggled with these letters, too. The state regulator shared that they have released 75 letters, but only a third have complied.

In other states, operators have exited the industry after receiving multiple letters backed by stricter enforcement actions.

For example, Stake.us and VGW exited Maryland and Delaware after receiving their second letters.

REFERENCES

• Illinois Gaming Board