Illinois has become the latest state to target sweepstakes casinos, as a Senate committee has amended a proposed ban on retail “gray machines” to include online sweepstakes platforms as well. While the bill is still in its early stages, it reflects a growing national trend among lawmakers, especially those in iGaming states, to crack down on social gaming models.
It’s important to note that while it has seen progress, the legislation is not guaranteed to pass. The bill’s sponsor, Sen. Bill Cunningham, proposed a similar retail sweepstakes ban in 2023, which failed to gain traction. Whether adding online platforms will make a difference this time remains to be seen. However, any momentum behind the bill could trigger some sweepstakes operators to exit the state preemptively. That’s what we’ve seen in New York, where Sen. Addabbo’s sweeps ban hasn’t passed yet but has still done enough to spook several operators into leaving voluntarily.
For now, Illinois players can still play at sweepstakes casinos. At the time of writing, GamingToday has determined that no major platforms have exited the state. We’ll keep you updated if that changes.
The bill updates Illinois’ Criminal Code
SB1705 would amend Illinois’ Criminal Code to classify any machine or electronic device that offers entry into a sweepstakes, contest, or competition based on chance as a gambling device. This includes machines or platforms where players receive free or paid credits (like coupons or vouchers) which they can use to win items of value or prizes.
Originally, the bill targeted unregulated retail sweepstakes machines in Illinois. It clarified that people wouldn’t be guilty of gambling if they participated in a game of chance or skill that did not require a purchase to enter. However, the Senate Gaming, Wagering, and Racing Committee inserted an important amendment: “except where conducted through use of a gambling device or by means of the Internet.” That clause would directly impact sweepstakes and social casinos.
Under the proposed law, violations would constitute a Class 4 felony. Additionally, the bill would eliminate a provision in the Video Gaming Act that currently permits unlicensed game devices in non-gambling contexts. If passed, the law would take effect immediately.
Is the ban aimed to help iGaming?
Illinois joins a growing list of states considering sweepstakes casino bans, including New Jersey, Connecticut, New York, and Maryland. Mississippi was also in the mix, but its sweepstakes ban bill died earlier this week. What stands out from this list is that those states either already have real-money online casinos (New Jersey and Connecticut) or have been actively discussing them over the past few years (New York and Maryland). This overlap suggests that lawmakers may view sweepstakes casinos as competition to regulated iGaming markets.
One of the members of the Gaming, Wagering, and Racing committee is Sen. Christina Castro. She is the Senate sponsor for the Internet Gaming Act, which would legalize online casinos in Illinois. Castro has long supported iGaming expansion. In 2023, she sponsored a failed 2023 Senate bill, also called Internet Gaming Act. Nevertheless, she and other proponents view regulated online casinos as a potential solution to address Illinois’s budget gap.
Earlier this year, Illinois Gov. J.B. Pritzker expressed support in exploring iGaming, calling online casinos “worthy of consideration” to support the state budget. However, this year’s proposal has yet to gain traction as it faces significant resistance. That includes retail casinos, the Video Gaming Terminal (VGT) industry, and other influential stakeholders.
