Michigan Regulators Order Unlicensed iGaming Sites to Terminate Operations

Michigan regulator orders unlicensed iGaming site to cease operations

The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to three online gambling sites operating illegally in the state.

Bay Shore, N.Y.-based PredictionStrike Inc., Limassol, Cyprus-based Sweepstakes Limited and San Francisco-based VGW LuckyLand, Inc. all operated illegal gambling operations in Michigan, state gaming regulators said. The MGCB has ordered all companies to immediately allow people in Michigan to access unlicensed gambling sites.

Gambling regulations exist for a reason, and illegal gambling is not welcome in the state of Michigan. "We don't want companies that circumvent the law to reach Michigan residents and leave them vulnerable because they play games on unregulated websites that Giving them no recourse and siphoning money away from local governments because they don't pay taxes like regulated corporations. Pay. "Legitimate casinos will."

Michigan is one of six states that allows online casinos. However, a platform must undergo a comprehensive suitability check by the MGCB before it can receive an iGaming license and be considered an approved online gambling platform. iGaming companies must partner with one of Detroit's three commercial casinos or a tribe that has a Class III gaming agreement with the state.

FanDuel, for example, operates online slots and table games through a partnership with MotorCity Casino in Detroit. DraftKings operates iGaming through a partnership with the Bay Mills Indian Community, which owns and operates the namesake Bay Mills Resort & Casino and Kings Club Casino in Chippewa County.

Illegal gaming website

Michigan’s Gambling Regulators were recently notified that unlicensed websites were operating illegally.

An MGCB investigation found that PredictionStrike offered internet casino gambling and sports betting without the proper licenses. State agencies determined that VGW was conducting illegal Internet gambling.

The Board concluded that Sweepstakes Limited operating as Stake.us operated an unlicensed online lottery and sweepstakes game. Stake describes itself as a “social casino”, but MGCB disputes this claim. Stake paid Canadian rapper Drake to market his online gaming business.

Michigan legalized online casino gambling at its commercial and tribal casinos in 2019. The Lawful Internet Gambling Act states that only casinos “currently licensed under the Michigan Gambling Control and Revenue Act and that are licensed tribal casinos in the State of Michigan” can apply for an Internet gambling and sports betting license.

The state of Michigan provides prosecutors with serious penalties they can impose on those who violate the state's gambling laws. Those found operating an unlicensed gambling establishment face penalties and penalties, including up to 10 years in prison and fines of up to $100,000.

Illegal online gambling remains a problem

The American Gaming Association says more states should legalize online gaming to protect consumers who want to play games at home and to eliminate bad actors and offshore gaming sites that continue to target U.S. gamers. The casino lobby is calling on the U.S. Department of Justice to better enforce the country's laws and ban foreign companies from allowing U.S. players to play games on their sites.

"These malicious actors target vulnerable customers, provide no consumer protections, ensure integrity or fair competition, and provide no economic benefits to states or tribal nations," said AGA CEO Bill Miller .”