Illinois sends 60 cease-and-desist orders to icasinos ahead of Super Bowl

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The Backstory

A pregame blitz on illegal gambling

Illinois’ move to send more than 60 cease-and-desist letters to suspected illegal online casinos and sweepstakes platforms ahead of Super Bowl Sunday did not happen in a vacuum. It is the latest turn in a broader state-by-state push to fence off regulated markets, rein in social and sweepstakes models that mimic gambling, and confront offshore operators that operate beyond U.S. licensing. Recent actions in Maryland, Michigan and Ohio show a pattern: wider targets, faster timelines and a growing willingness to pressure payment processors alongside operators.

The Illinois blitz singles out well-known sweepstakes-style brands such as Stake.us and Chumba Casino while warning that civil and criminal penalties are on the table for unlicensed play. The timing underscores a familiar regulatory playbook: clamp down before marquee sports events drive spikes in betting, then keep the pressure on through tax season and into college basketball and baseball. It also highlights a policy tension unique to Illinois, where a per-wager tax adopted last summer has coincided with a reported decline in legal betting volume. Regulators now face a dual challenge — protect consumers from illegal sites while keeping the regulated market competitive enough to hold them.

Maryland tests the sweepstakes perimeter

Maryland has been explicit about treating sweepstakes-style operators as a consumer protection risk and a compliance problem, even when those platforms argue they do not offer “real-money” gambling in the traditional sense. In January, the Maryland Lottery and Gaming Control Agency said it sent 11 cease-and-desist letters to sweepstakes sites and revealed that six operators — including Zula, McLuck, Rebet, Fortune Coins, Golden Hearts and Stake.us — responded but did not agree to stop serving Maryland residents. Five offshore sportsbooks — BetNow, BetUS, Everygame Sportsbook, SlotsAndCasino and BetAnySports — did not respond at all.

Maryland’s tactic is notable for its second front: follow-up letters to payment providers that facilitate transactions for the targeted sites. That approach aims to starve unlicensed platforms of financial rails, an escalation beyond simple notice-and-cure. The state also framed its actions as consistent with a growing national pattern, pointing to a recent exit by a sweepstakes operator from Connecticut after a similar order. For Illinois, which named some of the same brands, Maryland’s experience signals what comes next if notices alone do not trigger withdrawals — more letters, broader targets and pressure on the payments layer.

Michigan tightens the vise on offshore operators

Michigan has mounted one of the most sustained campaigns against offshore gambling websites, issuing waves of warnings and backing them with potential felony exposure. In February, the Michigan Gaming Control Board ordered BetNow to cease operations in the state, citing violations of the Lawful Internet Gaming Act and the Michigan Gaming Control and Revenue Act. The order spelled out the stakes: up to 10 years in prison or a $100,000 fine for running an unlicensed gambling enterprise, with the attorney general on deck if the operator failed to exit within 14 days.

Michigan paired that with a broader sweep targeting offshore casinos licensed in lenient jurisdictions. The regulator sent cease-and-desist letters to Alistair Solutions NV for running Lucky Tiger and Rich Palms in the state without approval and followed up by ordering 13 more offshore sites — from Captain Jack and Red Dog to Slots of Vegas — to stop serving Michigan residents. The board warned that such platforms expose players to withheld winnings, opaque bonus terms and no recourse when disputes arise.

For regulators elsewhere, Michigan’s cadence offers a playbook: repeated letters, explicit criminal liability, 14-day compliance windows, and public naming of targets to put consumers on alert. Illinois did not outline timelines publicly, but the state signaled that criminal and civil penalties are available under its code. If operators resist, Michigan’s example suggests the next step could be referrals to the attorney general.

Prediction markets step onto the field

Another line of enforcement is emerging where event contracts meet sports betting. The Ohio Casino Control Commission moved in April against platforms that let users buy yes-or-no contracts tied to sports outcomes. It sent cease-and-desist letters to Kalshi, Robinhood and Crypto.com, giving them until Apr. 14 to exit the state for offering sports-related event contracts without a betting license. Ohio framed the issue plainly: buying a contract on which team will win resembles a bet, but without age gating and responsible gaming protections required under state law.

New Jersey took similar steps last month, signaling multistate alignment on the sports-adjacent contracts that surged ahead of the Super Bowl and into March Madness. For Illinois, which is targeting Super Bowl traffic on unlicensed platforms, Ohio’s posture hints at an expanding perimeter: not just obvious offshore casinos, but also tech and fintech players that test sports markets under different labels.

Tax headwinds and consumer stakes

Illinois’ enforcement push unfolds amid concerns from licensed sportsbooks that the state’s per-wager tax, increased last July, is nudging price-sensitive bettors toward cheaper illegal options. The state has seen a reported 15% drop in bet volume since the tax took effect. Industry groups warn that when legal operators trim promotions or pass costs to customers, offshore and sweepstakes alternatives look more attractive, even if they carry higher risks of nonpayment and data misuse. That tension raises the bar for regulators: they must show visible action against unlicensed sites while ensuring the regulated market remains appealing.

The consumer stakes are clear in Michigan’s rhetoric and Maryland’s payments strategy. Offshore platforms often advertise higher odds or generous bonuses but can refuse withdrawals, enforce shifting rollover requirements or vanish behind shell companies. Sweepstakes casinos lean on alternative currencies to argue they are not gambling, but their mechanics replicate casino play closely enough that several states now treat them as de facto wagering when they reach local consumers.

What comes next

Illinois’ letters are an opening salvo rather than a finish line. Expect follow-ups to payment processors if targets ignore the orders, mirroring Maryland’s approach. If resistance persists, referrals to the attorney general are likely, as Michigan has telegraphed in multiple actions. Public naming of violators — and updates on exits — could also accelerate, a tactic used to warn consumers before major betting windows.

Another watch point is prediction markets. If event-contract platforms broaden sports offerings nationwide, Illinois may face the same questions Ohio is tackling about whether these products require sports wagering licenses. That would widen the cast of targets beyond offshore casinos and sweepstakes shops to regulated fintech and brokerage brands that experiment at the edge of gaming rules.

Finally, the economic backdrop matters. If the per-wager tax continues to dampen legal handle, pressure will build for lawmakers to revisit pricing or structure. Until then, regulators are leaning on enforcement to hold the line. The convergence of Super Bowl demand, heavier tax friction and a maturing illicit market explains why the crackdown is arriving now — and why it is unlikely to stop with a single round of letters.