Illinois Takes Action Against Unlicensed Sportsbooks and DFS Platforms

IGB) has intensified its efforts to curb illegal sports betting operations by issuing cease-and-desist letters to multiple gaming operators. Working alongside the Illinois Attorney General’s office, the IGB sent 11 letters earlier this month, alleging violations of state gaming laws.

Cease-and-Desist Notices Issued to Unlicensed Operators

Ahead of Super Bowl LIX, Illinois Attorney General Kwame Raoul highlighted enforcement actions against unlicensed gambling entities. Among those targeted were daily fantasy sports (DFS) platform PrizePicks and offshore sportsbook and casino operator Bovada. Raoul categorized both companies as “alleged unlicensed sports wagering sites.”

In addition to Bovada and PrizePicks, the IGB also sent cease-and-desist letters to the following operators:

• Bet Any Sports
• Bet Online
• Bet US
• Blitz Studios, Inc. d/b/a Sleeper
• Book Maker
• Taild Sports Inc. d/b/a Chalkboard
• Drafters
• Heritage Sports
• Parlay Play

The letters specify that these platforms are believed to be engaging in unlicensed sports betting, which is prohibited under the Illinois Sports Wagering Act and the state’s criminal code. The definition of sports wagering under state law includes single-game bets, parlays, props, in-play wagers, exchange betting, and pools.

Illinois is not alone in its push against offshore and unregulated betting platforms. Several other states have ramped up enforcement actions targeting similar operators. Michigan, for example, recently announced its own crackdown, issuing cease-and-desist orders to nine online casinos, including Bet Any Sports. The Michigan Gaming Control Board (MGCB) had previously taken action against Bovada, MyBookie, sweepstakes operators VGW and One Country, and skill-based gaming provider Papaya Gaming.

Most of the operators drawing scrutiny from state regulators are based offshore. Bovada operates out of Curaçao, while Bet Any Sports, Bet US, and Book Maker are ed in Costa Rica. Bet Online is headquartered in Panama, adding to the regulatory complexity as these entities operate beyond U.S. jurisdiction.

Illinois Targets DFS Platforms

In addition to traditional sportsbooks, the IGB has also taken aim at DFS operators. Several companies receiving cease-and-desist letters, including Chalkboard, Sleeper, and Drafters, promote themselves as fantasy sports platforms. Atlanta-based PrizePicks, which offers both against-the-house Pick ‘Em contests and peer-to-peer (P2P) Arena games, has also been singled out.

State regulators argue that some DFS formats resemble traditional sports betting too closely. Arkansas, Maryland, Ohio, and West Virginia have already raised concerns over against-the-house DFS contests, asserting that they fall outside the legal definition of fantasy sports. In its letters, the IGB emphasized that single-player contests do not meet the legal framework for multi-participant skill-based competitions as recognized by the Illinois Supreme Court.

PrizePicks has responded by shifting its Illinois operations toward peer-to-peer contests, a move that could align more closely with regulatory standards. The company told SBC Americas on Feb. 7 that it is actively transitioning to its Arena P2P product in the state, similar to adjustments it has made in other jurisdictions, including Florida.

Additionally, PrizePicks expressed optimism about potential legislative changes in Illinois. The company pointed to two newly introduced bills—Sen. Lakesia Collins’ SB1224 and Sen. Bill Cunningham’s SB2145—which aim to clarify and regulate DFS offerings in the state.

Source:

Illinois Gov.