Stake.us Exits Illinois on May 19 as Only 3% of 65 Sweepstakes Operators Comply With Illinois Gaming Board Cease-and-Desist Orders

Illinois Sweepstakes Crackdown: 97% of Operators Ignore Cease-and-Desist Orders Three Months On

The Illinois Gaming Board's most sweeping enforcement action against the sweepstakes casino industry has produced a sobering result: three months after issuing cease-and-desist letters to 65 operators, only two platforms had fully blocked Illinois residents by early May 2026. A third, Stake.us, completed its exit on May 19.

The compliance mathematics are stark. Of 65 operators ordered to restrict Illinois access or face civil and criminal penalties, approximately two operators — Smiles Casino and WOW Vegas — complied within the initial window. That is a 3% compliance rate for one of the most aggressive multi-operator enforcement campaigns in US sweepstakes regulatory history.

The February Crackdown

On February 4-5, 2026, the Illinois Gaming Board, acting alongside Attorney General Kwame Raoul, issued cease-and-desist letters to 65 sweepstakes casino operators. The IGB's legal position was straightforward: any dual-currency platform offering cash-redeemable prizes to Illinois residents is operating an illegal online casino under the Illinois Criminal Code.

The letters were sent to operators ranging from global brands — Chumba Casino, LuckyLand Slots, Pulsz — to smaller platforms. The penalty threatened was significant: civil enforcement and potential criminal referral.

Stake.us Exits May 19

Stake.us completed its Illinois exit on May 19, 2026. Affected accounts were placed into Redeem Only mode: players can log in and cash out existing balances, but cannot play games, make purchases, join promotions, or request postcard codes for free Stake Cash. The company has now exited 19 US states in response to sweepstakes enforcement actions.

The Stake.us withdrawal is the most commercially significant compliance action since the IGB issued its February letters. Chumba Casino (VGW), LuckyLand Slots, Pulsz, Fliff, and High 5 Casino have not complied as of mid-May.

Senate Bill 1705

Illinois Senate Bill 1705 would resolve the enforcement problem by reclassifying sweepstakes casino products as illegal gambling devices — Class 4 felony items — under state law. Senator Bill Cunningham's bill has advanced through committee and is being tracked by operators in at least a dozen other states considering similar legislation.

Why It Matters

For licensed iGaming operators, the sweepstakes sector's continued operation represents a direct competitive subsidy: these platforms are acquiring players from the same demographic pools as licensed operators without paying licensing fees, taxes, or compliance costs. The Illinois trajectory — civil cease-and-desist to criminal legislation — is the enforcement escalation model that regulators are replicating across the country as civil orders demonstrably fail to compel compliance.