Michigan Gaming Control Board clamps down on illegal operators
Regulator issued cease-and-desist orders to three operators, two based in US and one in Cyprus, over operating without a license in the state
The Michigan Gaming Control Board has sent cease-and-desist orders to three operators found to be illegally offering online gaming in the Green Lake State without a license.
The orders were sent to New York-based PredictionStrike, California-based Luckyland, and Sweepstakes Limited, headquartered in Limassol, Cyprus.
Following an investigation by the regulator, the three firms were each found to be in violation of Michigan gaming laws.
PredictionStrike was offering online gaming and sports betting in Michigan without a license.
Sweepstakes Limited was promoting an unlicensed online lottery and/or raffle for customers who buy its products through its Stake.us site.
VGW Luckyland, whose parent company VGW Holdings is based in Australia, was found to be offering illegal gambling in the form of an online game in which players wager “something of monetary value for the opportunity to win something of monetary value”.
These actions violated several different Michigan gambling laws, including the state’s Lawful Internet Gaming Act, Lawful Sports Betting Act, and the Michigan Gaming Control and Revenue Act, which prevents a party from offering gambling services without a license from the state regulator.
The latter Act states that a party found to be running an unlicensed gambling operation is potentially liable to a prison sentence of up to 10 years, or a fine of up to $100,000, or both.
Lastly, the operators were in breach of the Michigan Penal Code, which prohibits any form of unauthorized gambling involving prizes, consideration, and chance.
The regulator noted that since the investigation’s findings, all three operators have subsequently taken steps to prevent residents of Michigan from gambling on their sites.
Henry Williams, Michigan Gaming Control Board executive director, said: “Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan.
“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.”