The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to nine online casinos for violating state gaming laws. These websites offer a variety of casino-style games, including slots, poker, blackjack, roulette, and craps, as well as sports betting and horse racing services.
Operators Issued Cease-and-Desist Orders:
- BetAnySports (BAS)
- Cool Cat Casino
- BetDSI – Diamond Sportsbook International, d/b/a BetDSI.eu (BetDSI)
- Solar Game LTD and Busan Trade Office (Go Go Gold)
- My Dreams Casino
- NonStop Casino
- Palace of Chance
- Xbet Casino
- WagerWeb
“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 MGCB Executive Director Henry Williams. “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.”
Unregulated Online Gambling on the Rise
The rise of unlicensed online casinos is a growing concern nationwide. A 2022 report from the American Gaming Association (AGA) estimated that Americans wager over $510 billion annually with illegal and unregulated operators, including online casinos and sportsbooks. This unregulated market undermines consumer protections and results in substantial tax revenue losses for state and local governments. The AGA’s report highlights that illegal gambling operators contribute to an estimated $13.3 billion in lost tax revenue annually.
One method these platforms use to evade regulatory scrutiny is by operating under the guise of sweepstakes, which allows them to circumvent traditional gaming laws. However, many of these sites lack proper consumer protections, oversight, and responsible gambling measures, making them a risky choice for players and underscoring the importance of state-regulated gambling to ensure consumer safety.
Legal Violations and Risks
The investigation into these illegal gambling websites revealed that they are operating without the necessary Michigan gambling license, breaching several state laws, including:
- Lawful Internet Gaming Act: Internet gaming in Michigan is only permitted for licensed operators. Only casinos licensed under the Michigan Gaming Control and Revenue Act, as well as federally recognized tribal casinos, can legally apply for a gaming license.
- Michigan Gaming Control and Revenue Act: Operating a gambling business without a valid MGCB-issued license is a felony, punishable by up to 10 years in prison, a fine of up to $100,000, or both.
- Michigan Penal Code: Gambling that involves consideration, prize, and chance is broadly prohibited. Accepting payments with the expectation that they will be based on the outcome of uncertain events is illegal.
Although these sites offer various payment methods for deposits, including Visa, MasterCard, PayPal, and cryptocurrencies such as Bitcoin and Ethereum, they often require players to play through the entirety of their initial deposit at least once and achieve a certain minimum dollar amount before qualifying to withdraw their winnings.
MGCB’s Commitment to Consumer Protection
The MGCB has given the operators 14 days from receipt of the letters to cease offering gambling services to Michigan residents. If they fail to comply, the MGCB is prepared to work with the Michigan Attorney General’s Office to pursue further legal action.
