Illinois Cracks Down on Unlicensed Sportsbooks and DFS Operators
The Illinois Gaming Board (IGB), in collaboration with the Illinois Attorney General’s office, has intensified efforts to eliminate unlicensed sports betting and daily fantasy sports (DFS) operations in the state. Earlier this month, 11 cease-and-desist letters were sent to gaming operators alleged to be in violation of the Illinois Sports Wagering Act and Illinois Criminal Code.
Cease-and-Desist Orders to Unlicensed Operators
The enforcement action, which took place ahead of Super Bowl LIX, specifically targeted Bovada, a well-known offshore sportsbook and casino, as well as PrizePicks, a DFS platform. Illinois Attorney General Kwame Raoul identified both companies as “alleged unlicensed sports wagering sites”, reinforcing the state’s commitment to regulating online betting activities.
In addition to Bovadaand PrizePicks, the following platforms also received cease-and-desist notices from the IGB:
- 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
These letters assert that the named operators are conducting unauthorized sports wagering, which, under Illinois law, includes single-game bets, parlays, prop bets, in-play wagering, exchange betting, and pools.
States Increasing Enforcement Against Offshore Operators
Illinois is not alone in its crackdown on offshore betting platforms. Michigan has also escalated enforcement actions, issuing cease-and-desist letters to nine unlicensed online casinos, including Bet Any Sports. Previously, the Michigan Gaming Control Board (MGCB) had targeted other offshore brands such as Bovada, MyBookie, sweepstakes operators VGW and One Country, and skill-based gaming provider Papaya Gaming.
A significant challenge in regulating these operators is their offshore status. Many of the targeted entities are headquartered in Curaçao, Costa Rica, and Panama, operating outside of U.S. jurisdiction while continuing to serve American bettors.
DFS Platforms Under Scrutiny in Illinois
In addition to sportsbooks, the IGB has expanded its enforcement actions to DFS platforms, arguing that some formats too closely resemble traditional sports betting. DFS operators that received cease-and-desist letters include:
- Chalkboard
- Sleeper
- Drafters
- PrizePicks
PrizePicks, which offers against-the-house Pick ‘Em contests alongside peer-to-peer (P2P) Arena games, has been particularly scrutinized. Regulatory authorities in Arkansas, Maryland, Ohio, and West Virginia have similarly expressed concerns that single-player DFS contests do not align with the legal framework for fantasy sports.
The IGB’s letter to DFS operators stated:
"Specifically, the single-player contests you offer are not the legal multi-participant contests of skill the Illinois Supreme Court recognized."
In response, PrizePicks has begun transitioning its Illinois operations toward peer-to-peer contests, a model that may align more closely with state regulations. The company has adopted a similar approach in Florida, re-entering the market after switching to a P2P format.
Additionally, PrizePicks has expressed optimism about legislative efforts to regulate DFS in Illinois. The company cited two newly introduced bills, SB1224 (sponsored by Sen. Lakesia Collins) and SB2145 (sponsored by Sen. Bill Cunningham), which aim to clarify and regulate DFS operations within the state.
With regulatory scrutiny increasing, Illinois continues to tighten its oversight of unlicensed sports betting and DFS operations. The Illinois Gaming Board’s actions, along with potential legislative changes, signal a growing focus on compliance and consumer protection in the state’s evolving sports betting and fantasy gaming market.
Source:Illinois Takes Action Against Unlicensed Sportsbooks and DFS Platforms, Real Money Action, February 21, 2025.