Michigan Regulators Order Unlicensed iGaming Sites to Terminate Operations

The Michigan Gaming Control Board (MGCB) has issued cease-and-desist notices to three online gaming sites illegally operating in the state. 

According to state gaming regulators, PredictionStrike Inc. from Bay Shore, NY, Sweepstakes Limited from Limassol, Cyprus, and VGW LuckyLand, Inc. from San Francisco were all operating unlawful gaming operations in Michigan. The MGCB has directed every company to promptly prevent individuals in Michigan from accessing the unlicensed gaming websites.

"Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan,” said MGCB Executive Director Henry Williams. “We do not want businesses who skirt the law having access to Michigan citizens and leaving them vulnerable because they are playing on unregulated sites that leave them with no recourse, and that siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would.”

Michigan is among six states that permit online casinos, but platforms must pass thorough suitability assessments by the MGCB prior to obtaining an iGaming license and being recognized as an authorized online gaming platform. iGaming companies must collaborate with one of the three commercial casinos in Detroit or with a tribe having a Class III gaming agreement with the state. 

For example, FanDuel operates online slots and table games in collaboration with MotorCity Casino in Detroit. DraftKings operates iGaming via its partnership with the Bay Mills Indian Community, which owns and manages the Bay Mills Resort & Casino and Kings Club Casino in Chippewa County. 

 

Unauthorized Gaming Websites 

Michigan gaming regulators were recently alerted about the illegal operations of unlicensed websites. 

An investigation by the MGCB found that PredictionStrike provided online casino gaming and sports wagering without possessing the necessary licenses. The state agency determined that VGW was conducting unlawful online gambling activities. 

The board determined that Sweepstakes Limited functioned as Stake.us and conducted unlicensed online lottery and raffle activities. Stake promotes itself as a social casino, a claim that the MGCB challenges. Stake compensates Canadian rapper Drake to promote its online gaming enterprise. 

In 2019, Michigan permitted online casino gaming for both its commercial and tribal casinos. The Lawful Internet Gaming Act states that only casinos “currently licensed under the Michigan Gaming Control and Revenue Act and federally recognized tribal casinos in Michigan” can seek internet gaming and sports betting licenses. 

Michigan offers prosecutors significant penalties to impose on those who breach the state's gaming regulations. An individual convicted of running an illegal gambling business could face felony charges and penalties, which may include a prison sentence of up to 10 years and fines as high as $100,000. 

 

Illegal iGaming Continues to be an Issue 

The American Gaming Association argues that additional states ought to legalize online gaming to safeguard consumers wishing to play from their homes and to eliminate harmful individuals and offshore gaming sites that persist in targeting US players. The casino lobby has urged the US Justice Department to enhance the enforcement of national laws that ban foreign companies from permitting US players to bet on their sites. 

“These bad actors prey on vulnerable customers, offer no consumer protections, do not ensure integrity or fair play, and generate no economic benefit for states or tribal nations,” said AGA CEO Bill Miller.