Michigan Gaming Control Board issues nine cease-and-desist letters
The Michigan Gaming Control Board has issued nine cease-and-desist letters for violations of state gaming laws.
The affected websites offer a range of casino-style games, such as slots, poker, blackjack, roulette, and craps, as well as betting services for sporting events and horse races.
The operators issued cease-and-desist orders were:
- BetAnySports
- CoolCat Casino
- Diamond Sportsbook International, d/b/a BetDSI.eu (BetDSI)
- Solar Game LTD and Busan Trade Office (Go Go Gold)
- My Dreams Casino
- NonStop casino
- Palace of Chance
- Xbet Casino
- WagerWeb
“These unlicensed operators are not only in violation of Michigan’s laws but also pose significant risks to consumers by offering limited and often unreliable withdrawal options,” said Executive Director Henry Williams in a statement.
“Our role is to protect Michigan residents by ensuring that all online gambling activities are carried out legally and responsibly. These operators have 14 days to cease their illegal activities or face further legal action.”
According to a 2022 report cited by the Michigan Gaming Control Board, the American Gaming Association estimated that Americans wagered over $510 billion annually with illegal and unregulated operators, including online casinos and sportsbooks.
The unregulated market undermines consumer protections and results in substantial tax revenue losses for state and local governments.
The AGA’s report highlights that illegal gambling operators contribute to an estimated $13.3 billion in lost tax revenue annually.
The Michigan Gaming Control Board stated that these platforms evade regulatory scrutiny by operating as sweepstakes, allowing them to circumvent traditional gaming laws. Many of these sites lack proper consumer protections, oversight, and responsible gambling measures.
An investigation into these illegal gambling websites revealed they operate without the necessary Michigan gambling license and breach several state laws.
These include breaching the Lawful Internet Gaming Act, as Internet gaming in Michigan is only permitted for licensed operators.
They also contravene the Michigan Gaming Control and Revenue Act by operating a gambling business without a valid Michigan Gaming Control Board-issued license is a felony, punishable by up to 10 years in prison, a fine of up to $100,000, or both.
And break the Michigan Penal Code which states that gambling that involves consideration, prize, and chance is broadly prohibited. Accepting payments with the expectation that they will be based on the outcome of uncertain events is illegal.
Although these sites offer various payment methods for deposits, including Visa, MasterCard, PayPal, and cryptocurrencies such as Bitcoin and Ethereum, they often require players to play through the entirety of their initial deposit at least once and achieve a certain minimum dollar amount before qualifying to withdraw their winnings.
The Michigan Gaming Control Board has given the operators 14 days from receipt of the letters to cease offering gambling services to Michigan residents.
If they fail to comply, the Michigan Gaming Control Board is prepared to work with the Michigan Attorney General’s Office to pursue further legal action.
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