Michigan targets internal sites for illegal gambling operations

The Michigan Gaming Control Board has shifted its attention to international operators that may be making their products available in the local iGaming and sports betting markets. The regulator has sent cease-and-desist letters to three online gaming companies in particular, with the MGCB confirming the news last week, with one based in the United States, and the other two based overseas, asking them to discontinue their operations in the Great Lakes State in the absence of an official authorization from the state.

The regulator named three entities in its official press statement shared on the MGCB’s website, explaining that:

• PredictionStrike Inc in Bay Shore, New York
• Sweepstakes Limited (Stake.us) in Limassol, Cyprus
• VGW LuckyLand, Inc (VGW) in San Francisco California

…were all sent cease-and-desist letters last year. The companies received the letters on October 19, November 2, and December 5, 2023, the regulator noted down in its statement. VGW is also owned by VGW Holdings Ltd, which is a global tech and social gaming company based in Australia, the regulator explains.

The MGCB Executive Director, Henry Williams, also weighed in on the issue, arguing that illegal gambling operators were not welcomed in the state. He was adamant about upholding existing laws and ensuring that there is no foul play in the local regulated market:

"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."

The regulator did not hesitate to outline the potential breaches committed by the companies, including promoting unlicensed online lottery and raffle contests, illegal gambling by offering internet games in which players wager "something of monetary value," and not least, allowing unauthorized sports betting in the state of Michigan.

These infringements could be prosecuted under and are seen as violations of the Michigan Gaming Control and Revenue Act, Michigan Penal Code, and Lawful Internet Gaming Act. However, the regulator also informed that each of the three companies petitioned has now taken steps to ensure that it complies with local laws and that its offer is not available in the local market.

This is an important milestone for Michigan as it has taken a look at illegal operators and acted swiftly against them. However, each of the three aforementioned companies is a respected global entity with plenty of incentive to not fall foul of the law, whereas there are many rogue operators that would be tougher to crack. Yet, the MGCB is on the right path.

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