With the issuance of nine cease-and-desist letters to unlicensed online platforms, the Michigan Gaming Control Board (MGCB) has taken firm action against illegal gaming enterprises. These illicit businesses provided gambling services for horse races and sporting events, as well as poker, slot machines, and blackjack.
MGCB Executive Director Henry Williams emphasized the risks these platforms pose to consumers. “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,” he said.
He further stated that the agency’s priority is ensuring fair and legal gambling in Michigan. “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.”
Regulatory Challenges and Consumer Risks
The MGCB pointed out that many illegal operators disguise their services as sweepstakes to bypass traditional gaming laws. While this strategy helps them avoid regulatory oversight, it leaves players exposed to financial risks due to a lack of consumer protections, responsible gambling tools, and regulatory oversight.
Additionally, the agency referenced a 2022 research from the American Gaming Association (AGA), which calculated that over $510 billion in wagers are made annually in the United States through illegal and unregulated gaming. The analysis highlights the financial impact of illegal gambling by estimating that these unlicensed companies result in an annual loss of tax revenue of $13.3 billion.
The MGCB has set a 14-day deadline and anticipates complete compliance from the targeted operators. The agency has stated that it will work with the Michigan Attorney General’s Office to pursue additional legal measures if they do not shut down.
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