MGCB issues cease-and-desist letters to nine unlicensed online casinos

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 Michigan Gaming Control Board (MGCB) has issued nine cease-and-desist letters to unlicensed casinos attempting to operate within the state, offering players game types such as poker, slots and blackjack, as well as betting services for sporting events and horse races.

“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,” MGCB Executive Director Henry Williams said. 

“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.”

The MGCB also stated that a common method these platforms use to evade regulatory scrutiny is by operating under the appearance of sweepstakes, which allows the operators to circumvent traditional gaming laws.

Good to know: The MGCB published its Detroit casino revenue results for the month of January on February 12, with all three reporting $104.8m in combined revenue

Many of these sites lack proper consumer protections, oversight and responsible gambling measures, however, creating a harmful scenario for players and showcasing the importance of state-regulated gambling. 

The Board referenced a report conducted by the American Gaming Association (AGA) during 2022, which estimated that US residents wagered over $510bn annually with illegal and unregulated operators. The AGA’s report also highlights that illegal gambling operators contribute to an estimated $13.3bn in lost tax revenue annually. 

The operators have 14 days to cease operations within Michigan, and if any fail to comply, the MGCB is prepared to work with the Michigan Attorney General’s Office to pursue further legal action.

Kirk Geller

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