The Michigan Gaming Control Board, or MGCB, is the latest gambling authority to issue cease and desist orders to unlicensed online casinos in the state. It has sent out a total of nine C&D letters to gaming operators like CoolCat Casino, My Dreams Casino, BetAnySports, and more.

The Michigan Gaming Control Board has just announced that it has taken decisive action in opposition to nine casinos operating in violation of state gambling laws. The regulatory body issued cease-and-desist letters to the operators, ordering them to halt their unauthorized gambling activities or face further legal consequences.

Unlicensed operators targeted

The websites provide a wide variety of casino games, including blackjack, slots, roulette, craps, and poker, as well as online betting services for sports events and horse racing. The following online casino operators have been issued C&D orders:

  • CoolCat Casino
  • BetAnySports
  • My Dreams Casino
  • Solar Game LTD and Busan Trade Office (Go Go Gold)
  • NonStop Casino
  • Diamond Sportsbook International, d/b/a BetDSI.eu
  • WagerWeb
  • Palace of Chance
  • Xbet Casino

"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 Henry Williams, the Michigan Gaming Control Board's Executive Director. "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."

Growing concerns over unregulated online gambling

The rise of unlicensed and unregulated online gambling platforms is a national issue, with illegal operators siphoning away billions of dollars annually. According to a 2022 report by the American Gaming Association, US residents wagered more than $510 billion per year with unregulated and illegal gambling providers. This illicit market contributes to nearly $13.3 billion in lost taxes annually for state and local governments.

One strategy used by these unlicensed platforms to avoid scrutiny from regulators is by running as pretend 'sweepstakes casinos,' which allows them to bypass the usual gaming laws. But these sites frequently lack consumer protections, responsible gaming measures, and regulatory oversight, making them a risky choice for players. The MGCB's crackdown aims to reinforce the importance of state-regulated gambling, ensuring player safety and fair play.

Legal risks and violations

The MGCB's investigation found that these gambling platforms were operating without a valid Michigan gaming license, violating multiple state laws, including:

Michigan Gaming Control and Revenue Act: Running a gambling business with no proper license issued by the MGCB is a felony which is punishable by as much as 10 years in prison and a fine of as much as $100,000, or both.

Lawful Internet Gaming Act: This law permits online gambling only for operators licensed under the Michigan Gaming Control and Revenue Act or tribal casinos that are recognized on a federal level.

Michigan Penal Code: Gambling involving consideration, chance, and prize is widely prohibited. When an entity accepts payments based on uncertain outcomes, this is deemed illegal under state law.

Despite offering multiple deposit options - including PayPal, Visa, and MasterCard, and cryptocurrencies like Ethereum and Bitcoin - these sites often impose restrictive withdrawal conditions. For instance, many require players to wager their full initial deposit at least one time and meet a minimum balance threshold before they can withdraw winnings, a tactic that can make cashing out difficult.

MGCB's consumer protection efforts

The MGCB will give the operators 14 days to cease all gambling operations targeting residents in Michigan. If they do not comply, the board will collaborate with the Michigan Attorney General's Office to take further legal action.

The MGCB urges residents to exercise caution when engaging in online gambling. To verify the legality of a gaming site, Michigan players can consult the list of licensed internet gaming providers available on the MGCB's website at Michigan.gov/MGCB. In addition, individuals aware of illegal gaming operations are encouraged to report them via email at MIGamblingTip@michigan.gov or through the MGCB’s confidential hotline at 1-888-314-2682.