Michigan Regulatory Bodies Command Illegal Online Gambling Platforms to Halt Activities
Michigan Cracks Down on Unlicensed Online Gambling Websites
The Michigan Gaming Control Board (MGCB) is taking a firm stance against overseas companies that allow US players to gamble on their websites, particularly those targeting Michigan residents. The board has sent hundreds of cease-and-desist letters to unlicensed operators and has taken enforcement actions against several companies in recent months [1][2].
Michigan is one of six states that allows online casinos, but platforms must undergo extensive suitability reviews by the MGCB before receiving an iGaming license. The state has strict regulations in place to protect consumers and ensure legitimate gaming revenue. Gambling regulations, as stated by Michigan Executive Director of MGCB, Henry Williams, are in place for a reason, and illegal gambling operations are not welcome in Michigan [4].
The Lawful Internet Gaming Act and the Lawful Sports Betting Act govern online casino gaming and sports betting operations, respectively, in Michigan, requiring state licensing. The Michigan Penal Code contains criminal provisions for unauthorized gambling operations [1]. The MGCB is the regulator responsible for enforcing these laws, and it issues cease-and-desist orders to unlicensed operators. Non-compliant operators may face further legal action in coordination with the Michigan Attorney General [1][2][4].
In 2025 alone, dozens of enforcement actions have been taken, including 19 cease-and-desist letters on July 2 and 15 more on August 15 [1][2]. The penalties for operating unlicensed sites can include being ordered to cease operations immediately via cease-and-desist letters, potential further legal action with the Michigan Attorney General if the operator does not comply, and violations of the Michigan Penal Code related to illegal gambling, which may lead to criminal charges [1][2][4].
Michigan strictly limits legal online gambling and sports betting to casinos licensed by the state or federally recognized tribes approved by the MGCB. Legal operators include DraftKings, FanDuel, and BetMGM, among others [1][3].
Recently, the MGCB sent cease-and-desist letters to three online gaming websites: PredictionStrike Inc., Sweepstakes Limited, and VGW LuckyLand, Inc. PredictionStrike offered internet casino gambling and sports betting without a license, as determined by the MGCB, while Sweepstakes Limited operated as Stake.us and ran unlicensed online lottery and raffle games [1]. The MGCB found VGW to be operating illegal internet gambling games [1].
The MGCB is concerned that these illegal gaming websites siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would [4]. Approved online gaming platforms in Michigan must partner with one of the three commercial casinos in Detroit or with a tribe holding a Class III gaming compact with the state [4].
The American Gaming Association calls for more states to legalize online gaming to protect consumers and rid the market of bad actors and offshore gaming websites [4]. The MGCB does not want businesses that 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 [4].
The MGCB received a tip about unlicensed websites doing business illegally in Michigan. Michigan provides prosecutors with penalties up to 10 years in prison and fines up to $100K for operating unlicensed gambling operations [1]. FanDuel runs online slots and table games through its partnership with Detroit's MotorCity Casino [3].
| Law/Regulation | Details | |-----------------------------------|------------------------------------------------------------------------------------------| | Lawful Internet Gaming Act | Governs online casino gaming, requires state licensing. | | Lawful Sports Betting Act | Governs legal sports betting operations, requires licensing. | | Michigan Penal Code | Contains criminal provisions for unauthorized gambling operations. | | Enforcement agency | Michigan Gaming Control Board (MGCB) | | Enforcement actions | Cease-and-desist orders, possible prosecution alongside Attorney General’s office. | | Penalties | Forced closure, fines, criminal charges if violations persist. | | Legal operators | Only licensed Michigan or tribal casinos allowed to offer online gambling/sports betting.|
Sources: [1] Michigan Gaming Control Board [2] Michigan Live [3] FanDuel [4] American Gaming Association
- The Michigan Gaming Control Board (MGCB) has taken enforcement actions against offshore iGaming operators, particularly those targeting Michigan residents, due to their unlicensed status.
- Michigan's Lawful Internet Gaming Act and Lawful Sports Betting Act govern online casino gaming and sports betting operations, respectively, in the state, requiring state licensing.
- The MGCB is concerned about unlicensed offshore gaming websites operating in Michigan, as they are not paying taxes and leave citizens without recourse.
- Non-compliant operators may face penalties such as being ordered to cease operations immediately, potential further legal action, and violations of the Michigan Penal Code related to illegal gambling, which may lead to criminal charges.
