A bill in Illinois that would crack down on sweepstakes gaming has been referred to the Senate Executive committee as it continues to gather momentum.
Sen. Bill Cunningham’s SB 1705 would amend the state Criminal Code to clarify that the definition of a “gambling device” includes any electronic device that offers entry into any contest, competition or sweepstakes scheme that involves an element of chance and rewards players with an item of value for winning.
While the definition of gambling does not include games of skill or chance where things of value can be won but no payment or purchase is required to participate, the new amendment would void that exemption for when players use a gambling device prohibited by the changes to the definition.
The bill was amended in the state Gaming, Wagering and Racing committee to further specify that the exemption also does not apply when the gaming is done anywhere online.
Sweepstakes gambling offenses would be made a Class 4 felony.
Several other states have proposed bills to explicitly ban sweepstakes this year. One of the most high-profile, in Mississippi, died at a late stage this week despite passing both chambers after online sports betting legalization was shoved into the mix.
Meanwhile, Cunningham has sponsored several other gambling bills this session, including one to legalize and regulate daily fantasy sports and two others that would limit some of the things that licensed online sportsbooks can do.
Illinois looks to chase out other unapproved sites
While Illinois lawmakers ponder a legislative move against sweepstakes and bad actors in gaming, the state’s gaming regulator has been taking its own action against other operators.
Working with the Attorney General’s office, the Illinois Gaming Board (IGB) sent 11 cease-and-desist letters in February to various online operators it believed were violating state gaming law by offering unlicensed sports wagering.
Prediction markets’ sports contracts are also in the board’s crosshairs.
The IGB this week became the latest state regulator to send official notices to prediction markets operators including Kalshi to accuse them of breaking the law by offering trading on sports event contracts.
The board sent cease-and-desist notices to each of Kalshi, Robinhood and Crypto.com to stress that it has “neither licensed nor authorized” any of those operators to offer sports wagering and demanded that they stop providing sports contracts, or else risk facing criminal penalties.
