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A proposal from Illinois Sen. Bill Cunningham would broaden the definition of “gambling” in the state to include sweepstakes-based devices and, following an amendment this week, online sweepstakes gaming sites. If the bill becomes law, it could make operating a sweepstakes casino explicitly illegal in Illinois, along with other gambling-adjacent products like gray-market “skill machines.”
Cunningham’s filing resembles similar legislation in other US states and follows the state’s gaming regulatory body moves to curtail what it considers to be illegal gambling. Cunningham’s bill could prompt more of those actions and give prosecutors in the state clear directives.
SB1705 expands Illinois’ gambling definition
Cunningham filed SB1705 on Feb. 5 but the bill did not see any substantial movement in the Illinois Senate Gaming, Wagering, and Racing Committee until April 2. On that date, Cunningham added an amendment to the bill and submitted that amendment to three other committees in the Illinois Senate.
One of the changes made by the amendment is to replace “through the use of a gambling device” with “through the use of a gambling device or by means of the Internet” in a key clause. While the original bill appeared to target gray-market retail gambling devices, the amendment broadens it further to encompass online “sweeps.”
SB1705 changes state law by expanding what Illinois considers to be gambling. It adds “any vending or other electronic machine or device…that awards credits…that offers a person entry into any contest, competition, sweepstakes, scheme, plan, or other selection process that involves or is dependent upon an element of chance for which the person may receive a gift, award, or other item or service of value” to the state code.
The bill also removes a provision that reads, “Nothing in this section shall be deemed to prohibit the use of a game device only if the game device is used in an activity that is not gambling” under state law. SB1705 also stresses that offering gambling without a license in Illinois is a Class 4 felony.
In Illinois, conviction of a Class 4 felony carries a potential prison sentence of as many as three years but no fewer than one year and/or a fine of up to $25,000. If SB1705 becomes law, that could be what prosecutors are considering regarding sweepstakes-based online casinos operating in Illinois.
This potential statute mimics actions that legislators in other US states have been taking to target the operation of unlicensed gambling websites. So far, most of those bills are still in early phases.
Restrictions for sweepstakes-based online casino games at various stages
For 2025, the litany of proposals to restrict the operations of sweepstakes-based websites offering casino-style games have seen varying levels of success. In Mississippi, for example, both legislative chambers passed different versions of a bill but a conference to negotiate a consolidation of the two to send to Gov. Tate Reeves failed.
The Maryland Senate has approved a bill but a House committee has not yet voted on it. In Connecticut, Florida, Nevada, New Jersey, and New York, such proposals have either been sitting in committees for weeks or are awaiting floor votes in their chambers of origin.
As Illinois legislators ponder Cunningham’s proposal, the Illinois Gaming Board (IGB) has been active on the front of addressing unlicensed gambling.
IGB pursues penalties for unlicensed gambling
Since February, the IGB has sent cease and desist letters to a dozen recipients, stating that it “has reason to believe the online gaming operators identified…are engaging in unlicensed sports wagering activity” in violation of state law. The enactment of SB1705 could give the IGB more confidence in taking similar actions against operators of unlicensed sweepstakes-based websites that offer casino-style games.
Currently, Illinois law does not allow for the licensing of online casino games. However, the prospect of prosecuting operators of sweepstakes-based websites that offer casino-style games is legally nebulous because of the tenets that SB1705 aims to alter and due to federal statutes governing sweepstakes.
SB1705 could provide more clarity if enacted and the new statutes survive inevitable court challenges. There is still much more debate ahead of the bill in Springfield, however.
