Illegal Gambling Operations Receive Cease-and-Desist Letters from MGCB

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: February 3, 2024

The Michigan Gaming Control Board (MGCB) has sent cease-and-desist letters to three online gaming companies that are illegally operating in the state in an effort to preserve the integrity of the gaming sector. The MGCB found that PredictionStrike Inc, Sweepstakes Limited, and VGW LuckyLand, Inc. were operating in violation of state laws and has therefore ordered them to cease operations immediately inside the state of Michigan.

Michigan has strict laws in place and is one of the six states that permits internet casinos. Before being awarded an iGaming license, platforms hoping to operate in the state must go through rigorous suitability checks conducted by the MGCB. Their legitimacy is established by the approval procedure, which also guarantees adherence to the state’s gaming regulations. iGaming companies must also form alliances with a tribe that has a Class III gaming agreement with the state, or with one of Detroit’s three commercial casinos.

It was discovered through recent tips that unauthorized websites are operating illicit gaming activities in Michigan. The MGCB conducted an inquiry and found that PredictionStrike was operating an online casino and sportsbook without the required permits. While Sweepstakes Limited, doing business as Stake.us, was found to be running unlicensed online lottery and raffle games, VGW was found to be operating illicit internet gambling games.

Stake.us Dispute: MGCB Challenges Social Casino Claim

The MGCB contests Stake.us’s assertion that it is a social casino. According to the board, Sweepstakes Limited, doing business as Stake.us, did in fact conduct unlicensed online raffle and lottery games. Remarkably, Canadian musician Drake works with Stake.us to promote its online gambling company, lending a celebrity backing to the controversies surrounding its business practices.

By virtue of the Lawful Internet Gaming Act, Michigan authorized online casino gaming for both commercial and tribal casinos in 2019. Only tribal casinos in the state with federal authorization and casinos registered under the Michigan Gaming Control and Revenue Act are allowed to seek for licenses to operate sportsbooks and play online games, according to the legislation. The purpose of this strict framework is to guarantee that only trustworthy and authorized businesses participate in Michigan’s online gaming market.

Penalties for Violating Gaming Laws: A Strong Deterrent

Michigan prosecutes people who break its gaming rules harshly. If found guilty, running an unlicensed gambling operation carries felony charges and a maximum sentence of 10 years in jail as well as fines of $100,000. The state’s determination to discourage illegal gaming activities and shield its residents from unregulated platforms is demonstrated by these severe sanctions.

The American Gaming Association (AGA) has continuously pushed for the legalization of internet gaming in more states. The AGA highlights how crucial it is for this kind of legislation to occur in order to safeguard customers who want to play online games in the comfort of their own homes. The AGA also contends that permitting internet gaming contributes to the eradication of dishonest individuals and foreign gaming platforms that still prey on American gamers.

Bill Miller, CEO of the AGA, contends that 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.” The American Gaming Association (AGA) has made a request to the United States Justice Department to strengthen the enforcement of laws that forbid foreign corporations from permitting American gamers to wager on their websites.

The state’s dedication to preserving the integrity of its gaming sector is demonstrated by the steps taken by the Michigan Gaming Control Board against the illegal online gambling sites. Michigan seeks to provide its citizens with a safe and open online gaming environment by implementing strict regulations, carrying out exhaustive investigations, and applying severe penalties for infractions. The state is doing everything it can to safeguard consumers and maintain the financial rewards made possible by a regulated gaming sector even while the fight against illegal internet gambling rages on.