Michigan Gaming Control Board Targets Unlicensed Online Gaming Operators
In a move to crack down on illegal gaming activity in the state, the Michigan Gaming Control Board has taken action against three online gaming operators by issuing cease-and-desist letters. These operators were found to be operating without proper licenses, posing a threat to the state’s regulated gaming industry and potential loss of tax revenue to offshore operators.
Cease and Desist Letters Issued
The Michigan Gaming Control Board has sent cease and desist orders to three companies identified as operating without the necessary licenses. The companies targeted are PredictionStrike Inc., Sweepstakes Limited (Stake.us), and VGW LuckyLand, Inc. These letters outline the specific violations committed by each of the operators and were issued on different dates between October and December 2023.
Violations of Unregulated Operators Outlined
The cease and desist letters detail the specific violations committed by the unlicensed operators. PredictionStrike Inc. was offering gaming and internet sports betting in Michigan without the required licenses. Stake.us was found to be promoting an unlicensed online lottery or raffle, while VGW was conducting illegal gambling by offering an internet game involving monetary wagers.
Key Michigan Laws Violated
The operators contacted by the Michigan Gaming and Control Board were found to be in violation of three key Michigan laws. The Lawful Internet Gaming Act explicitly states that internet gaming can only be provided by licensed operators, while the Lawful Sports Betting Act restricts sports betting to licensed operators and platforms. The Michigan Gaming Control and Revenue Act prohibits gambling without a license issued by the Michigan Gaming Control Board. Additionally, the Michigan Penal Code broadly prohibits unauthorized gambling involving considerations, prizes, and chance.
Michigan Gaming Control Board Reiterates Importance of Regulations
The Executive Director of the Michigan Gaming Control Board emphasized the importance of the state’s regulations, stating that illegal gambling operations are not welcome in Michigan. By cracking down on unregulated sites, the board aims to protect Michigan citizens from potential harm and ensure that taxes and funds remain within regulated establishments.
Operators Respond to Michigan Gaming Control Board
In response to the actions taken by the Michigan Gaming Control Board, PredictionStrike Inc., Stake.us, and VGW have implemented measures to prevent Michigan residents from gambling on their websites. Some operators have disabled purchases, while others have allowed existing customers to continue playing and redeeming prizes until a specified date.
Strengthening Michigan’s Gaming Industry
The Michigan Gaming Control Board’s actions reflect the state’s commitment to maintaining the integrity of its growing gaming industry. By enforcing regulations, the board aims to protect residents and ensure that all gambling activities adhere to predefined rules and licensing requirements.
Analyst comment
Positive news: Michigan Gaming Control Board Targets Unlicensed Online Gaming Operators
Analysis: The Michigan Gaming Control Board’s crackdown on unlicensed online gaming operators is a positive development for the market. This action aims to protect the state’s regulated gaming industry, ensure tax revenue stays within regulated establishments, and prevent potential harm to Michigan citizens. Adherence to regulations will strengthen Michigan’s gaming industry and maintain its integrity.
