Michigan's Attorney General Cracks Down on Unlawful Online Gambling Platforms
The Attorney General of Michigan, Dana Nessel, has warned that unregulated and offshore gaming websites trying to grab consumers in the state will soon face the consequences of the law.
Nessel's office has confirmed that they have taken legal action against a Massachusetts-based firm known as Golden Hearts Games, Inc. This action led to an agreement from the unregulated gaming website to cease operations.
Golden Hearts offers free-to-play social casino games online. The Michigan Gaming Control Board (MGCB) had started an inquiry into the company's activities in August 2021, after receiving complaints and inquiries from Michigan residents using the platform. Regulators, with the support of the Attorney General's office, found that Golden Hearts had violated Michigan's gaming laws. Last year, Nessel's office had issued a cease-and-desist order to the company, but they continued allowing players from Michigan to access the social games online.
Free to play, Golden Hearts' website allows players to purchase chips when they run out of their free tokens. They can also convert their digital coins into real cash prizes.
Michigan legalized internet gambling and sports betting in 2019. The law permits Detroit's three commercial casinos and the state's federally recognized tribes to operate online casino games and sports betting. The MGCB is responsible for the licensing and regulation of both commercial and tribal online gaming operations. Online charitable gaming is allowed in Michigan, with the Michigan Lottery overseeing it. However, online charitable gaming is not permitted.
Nessel's office stated that Golden Hearts did not abide by the cease-and-desist order. This led to threats of a lawsuit using the Michigan Consumer Protection Act, citing that Golden Hearts was misleading Michigan residents into believing they were participating in legal gaming.
The threats of legal action led to an agreement from Golden Hearts, effective as of September 1, 2023, to stop operations.
Nessel said, "Unlicensed gaming deprives our schools and government of vital funding and leaves consumers unprotected." She continued, "When companies like Golden Hearts try to dodge Michigan's gaming laws, they create the impression that their games are legal and safe for consumers."
The AG concluded by saying, "My office is steadfast in ensuring that Michigan's gaming laws are obeyed and those who violate them are held accountable."
Unlicensed online gambling is a massive business, with more than half a trillion dollars being gambled illegally every year via unregulated websites. The legal gaming industry and various state gaming boards have urged the Justice Department to take action against these unauthorized casino websites. The DOJ promised recently to tackle illicit online gaming websites.
"The Department considers illegal gambling, including illegal online gambling, a priority, and continues to successfully investigate and prosecute illegal internet gambling," a DOJ official affirmed.
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