The Illinois Gaming Board has become the latest in the United States to warn against prediction markets as it issues a memorandum.
The statement has come in response to recent inquiries regarding prediction markets, including purported sports event contracts. These questions have prompted the regulatory board to reconfirm its position on the topic.
Some news: I hadn't seen this reported yet, but late last week Illinois regulators told gaming licensees in the state (cough, cough DraftKings, FanDuel) that getting into prediction markets could impact suitability. Fifth state to do this.https://t.co/CP3AScHYWK pic.twitter.com/Wye7XsyvfE
— Dustin Gouker (@DustinGouker) October 27, 2025
“As a general matter, there is no right under Illinois law to engage in or profit from gambling through contract or otherwise…
“Gambling is legal in Illinois only to the extent allowed under State law, such as the Illinois Gambling Act, Video Gaming Act, Sports Wagering Act, and Criminal Code of 2012. It is unlawful to unknowingly establish, maintain, or operate an Internet site that permits a person to play a game of chance or skill for money or other thing of value, or that permits a person to make a wager upon the result of any sport, game, contest, political nomination, appointment, or election via the Internet without an IGB-issued license.”
Illinois isn’t alone in its thoughts about prediction markets
The memorandum continues to outright say: “‘Predictions markets’ constitute gambling activity under Illinois law.” It is said that parties who participate in or facilitate such activity within the state, without IGB licensure or authorization, are engaged in illegal gambling.
The regulator warns that if someone is found to be violating gaming laws or rules of another state or tribal government, such conduct may likewise impact that party’s suitability for licensure in Illinois. In April, the regulator became the latest state to issue cease-and-desist letters to prediction markets like Kalshi and Robinhood, accusing them of breaking the law by letting people trade contracts based on sports events.
It’s not just this state which has made their opinions known on prediction markets, as others have also issued concerns. Earlier in October, the Pennsylvania gambling watchdog director claimed that the “growing presence” of these markets is a “significant threat” to the state’s regulations.
In September, the Arizona Department of Gaming sent communications to approved sportsbooks in the state warning them that offering prediction markets outside of Arizona could put their license at risk. The Ohio Casino Control Commission has issued similar warnings, as has Tennessee.
Featured Image: Credit to ‘fomulanone’ on Wikimedia Commons
