Urlacher is the brother of Chicago Bears great Brian Urlacher. He has also been the mayor of Mettawa, Illinois since 2013.
He was recently reelected as mayor of Mettawa and had been charged with conspiracy to engage in illegal gambling.
Authorities said he tracked down gambling debts, while helping run an illegal gambling operation. That indictment could have landed him in federal prison.
"He wasn't at the top of the pyramid here, but he was very much important, it seems, in the operation of the enterprise, as charged in this indictment," ABC7 Legal Analyst Gil Soffer said at the time. "There's a lot of money trading hands. It is, in some ways, an old time gambling operation but using the internet."
He was among 10 people charged with conspiring to illegally conduct a multi-million dollar sports gambling business based in the Chicago suburbs. The nine others accused include a Chicago police officer, Nicholas Stella.
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Former President Donald Trump granted Casey Urlacher a full pardon.
Urlacher filed paperwork to run in the state's 26th District.
The Associated Press contributed to this report.