Michigan Launches New Attack on Unlicensed iGaming Operators
The Michigan Gaming Control Board (MGCB) has intensified its efforts to combat unlicensed online gambling operators in the state, recently issuing nine cease-and-desist letters to companies accused of illegally offering iGaming services. With Michigan's regulated market consisting of 15 licensed online casinos, the MGCB has been actively working to eliminate unauthorized competition to protect consumers and the integrity of the legal gaming industry.
LISTEN TO THIS ARTICLE:The regulator asserts that the targeted operators have violated state gaming laws by offering a range of casino games, including slots, poker, blackjack, roulette, and craps. Additionally, these operators are alleged to have provided sports betting and horse racing without the required licenses.
Related: Papaya Gaming Issued with Cease-and-Desist Order in MichiganThe MGCB stated that unlicensed operators are not only in violation of Michigan's gaming laws but also present significant risks to consumers, particularly due to unreliable withdrawal processes that may limit players' ability to access their funds.
According to the MGCB, operators receiving cease-and-desist notices include Solar Game LTD and Busan Trade Office, which operates Go Go Gold, as well as BetAnySports, CoolCat Casino, Diamond Sportsbook International under the name BetDSI.eu, My Dreams Casino, NonStop Casino, Palace of Chance, Xbet Casino and WagerWeb. These platforms have been instructed to halt their operations in Michigan within 14 days or face additional legal consequences.
The MGCB maintains a strict stance on illegal gambling activities, emphasizing the need to protect both licensed businesses and residents who participate in online gaming. Following an investigation, the regulator determined that these operators violated multiple state laws, including the Lawful Internet Gaming Act, which allows only licensed commercial and tribal casinos to offer online gambling in the state.
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Unlicensed Operators Face Felony Charges
Under the Michigan Gaming Control and Revenue Act, operating a gambling enterprise without a valid MGCB license is classified as a felony offense, carrying penalties of up to 10 years in prison, fines reaching $100,000, or both. Furthermore, Michigan's Penal Code broadly prohibits gambling involving the exchange of money based on uncertain events, reinforcing the state's legal framework against unauthorized gaming.
The MGCB's actions are part of an ongoing campaign to address illegal gambling, which has been an issue in Michigan for several years. The regulator referenced findings from a 2022 American Gaming Association (AGA) study that estimated Americans wager around $510 billion annually with illegal and unregulated operators, including online casinos and sportsbooks. The growing prevalence of these unauthorized platforms presents regulatory challenges as they continue to attract players despite legal restrictions.
In addition to cracking down on illicit online casinos, the MGCB has also been monitoring an increase in unregulated gaming machines in the state. These so-called "skill games" closely resemble slot machines and have become a growing concern for law enforcement. The Michigan Department of Attorney General recently collaborated with the MGCB to issue a public warning about the expansion of these unauthorized gambling devices, reinforcing the state's commitment to eradicating unlawful gaming operations.
The MGCB has taken firm action against illegal gaming platforms in the past. Earlier, it successfully blocked Bovada and MyBookie.ag from operating in Michigan after sending a cease-and-desist letter. The regulator has also uncovered and shut down illegal gambling establishments in Flint and Saginaw, demonstrating a consistent approach to enforcing state gaming laws.
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