The push against sweepstakes casino operators continues in Illinois as regulators took sweeping action last week.
The Illinois Gaming Board and Attorney General’s Office issued more than 60 cease-and-desist letters to unlicensed and unregulated online casino and sweepstakes casino operators.
“Illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards, and are antithetical to the public’s interest in regulated gaming,” Illinois Gaming Board Administrator Marcus D Fruchter said in a release. “The IGB will continue to evaluate all available regulatory and law enforcement tools to combat illegal gambling and to protect Illinoisans.”
Among prominent operators sent the letters were:
- Chumba Casino
- Fliff
- LuckyLand Slots
- Stake
“The law is clear: Gambling in Illinois must be properly licensed and regulated,” Illinois Attorney General Kwame Raoul said in the release. “Unlicensed gaming operators put Illinois consumers at risk and undermine the integrity of our regulated gaming market. We will continue to work with the Illinois Gaming Board to protect our residents and hold illegal operators accountable.”
Illinois’ action against sweepstakes operators continues a long string of action nationally, including hundreds of cease-and-desist letters sent by state regulators last year. Six states, including New York and California, specifically outlawed the operators last year. This year, multiple state legislatures are making an effort to pass similar prohibitions. The Indiana House has sent its sweepstakes ban to the Senate.
Mississippi Senate again passes sweepstakes ban
The Mississippi Senate was the first chamber in the US to pass a sweepstakes prohibition last year. It failed to be enacted, as the House amended the bill to include online sports betting language and it died in conference committee.
This year, senators David Blount and Joey Fillingane successfully guided SB 2104 through the chamber with a unanimous vote. It will head to the House, which just passed an online sports betting bill for the third straight year.
SD lawmakers advance online sports betting bill
The South Dakota Senate Taxation Committee advanced SJ 504 last week, 5-3, sending the online sports betting proposal to the Senate floor. The bill would allow voters to weigh in on the issue on the 2026 ballot. Voters approved in-person sports betting in Deadwood in 2020.
Among the main issues noted by lawmakers and Deadwood casinos is the emergence of prediction markets. Multiple lawmakers on the committee who voted to advance the bill were hesitant about the potential of taking sportsbooks online.
According to GeoComply information presented during the committee hearing, there were 1.6 million login attempts to sportsbooks in South Dakota during 2025. Those attempts were from 55,000 accounts. GeoComply also mentioned 103,000 geolocation pings from within two kilometres of the South Dakota and Iowa border during the 2025 NFL regular season.
Louisiana parishes without betting could get another shot
Louisiana voters approved sports betting at the ballot in 2020. However, as part of Louisiana’s process, the legalisation was on a parish-by-parish basis, with voters in 55 of 64 parishes approving of sports betting. Therefore, sportsbooks must use geofencing to block availability in nine parishes in Louisiana.
But that could change with HB 72.
Rep Travis Johnson introduced the proposal, which would allow parishes to call for a referendum election on gambling issues. Parishes could also vote on riverboat casinos, horse racing and video poker.
Virginia House gambling legislation moving
Multiple gambling bills, including proposals for a consolidated gambling regulator and legalising online casinos, advanced in the Virginia Senate.
The House is now taking its turn. The House General Laws Committee advanced HB 161, 12-8, last week. The proposal is the House companion to the Senate’s online casino bill, SB 118.
The Senate bill appeared to be stalled last month, before amendments strengthened its responsible gambling components. Industry sources suggest its potential passage is also tied to the bill that would create a Virginia Gaming Commission.
The House bill now carries a stipulation that it must be approved by the full Legislature in both 2026 and 2027.
Alaska looking at sports betting?
Last year, Rep David Nelson introduced HB 145, which would legalise online sports betting in Alaska.
The bill was referred to the Labor and Commerce Committee, but lawmakers did not discuss the bill last year. But last month, a co-sponsor, Rep Mike Prax, was added to the bill, indicating the legislation is still somewhat active.
Nelson’s proposal would allow the state to issue up to 10 sportsbook licences. It would create a 20% tax on sports betting revenue.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
Original article: https://igamingbusiness.com/gaming/online-casino/legislation-roundup-illinois-sweepstakes-casino-sports-betting/
