State orders online gaming sites to quit operations in Michigan. What we know

Posted by author February 13, 2025 Gambling

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The Michigan Gaming Control Board has ordered nine unlicensed online gambling operators to cease taking bets in Michigan.

The affected websites offer a range of casino-style games, including slots, poker, blackjack, roulette, and craps, as well as betting services for sporting events and horse races, the gaming control board said.

“These unlicensed operators are not only in violation of Michigan’s laws but also pose significant risks to consumers by offering limited and often unreliable withdrawal options,” said MGCB Executive Director Henry Williams.

The sites offer various payment methods for deposits, including Visa, MasterCard, PayPal, and cryptocurrencies such as Bitcoin and Ethereum, but they often require players to play through the entirety of their initial deposit at least once and achieve a certain minimum dollar amount before qualifying to withdraw their winnings, the state said.

The gaming board said unlicensed operators also evade regulatory scrutiny by operating under the guise of sweepstakes, which allows them to circumvent traditional gaming laws. However, many sites lack proper consumer protections, oversight, and responsible gambling measures.

“Making them a risky choice for players and underscoring the importance of state-regulated gambling to ensure consumer safety,” the release said.

The online operators have 14 days to cease their activities or they will “face further legal action,” Williams said.

Which online gambling operators were ordered to stop operating?

The following operators have been issued cease-and-desist orders:

BetAnySports
CoolCat Casino
Diamond Sportsbook International, d/b/a BetDSI.eu
Solar Game LTD and Busan Trade Office (Go Go Gold)
My Dreams Casino
NonStop casino
Palace of Chance
Xbet Casino
WagerWeb

What are Michigan officials claiming?

According to the state agency, an investigation into the gambling websites revealed a breach in several state laws, including:

Lawful Internet Gaming Act: Internet gaming in Michigan is only permitted for licensed operators. Only casinos licensed under the Michigan Gaming Control and Revenue Act, as well as federally recognized tribal casinos, can legally apply for a gaming license.
Michigan Gaming Control and Revenue Act: Operating a gambling business without a valid MGCB-issued license is a felony, punishable by up to 10 years in prison, a fine of up to $100,000, or both.
Michigan Penal Code: Gambling that involves consideration, prize, and chance is broadly prohibited. Accepting payments with the expectation that they will be based on the outcome of uncertain events is illegal.

Unregulated online gambling on the rise

According to a 2022 report from the American Gaming Association, Americans wagered more than $510 billion annually with illegal and unregulated operators, including online casinos and sportsbooks.

According to the MGCB, the unregulated market undermines consumer protections and results in tax revenue losses for state and local governments.

An estimated $13.3 billion is lost in tax revenue annually across the U.S., the report says.

How can I be sure an online gambling site is legitimate?

To verify the legality of any site, state officials encourage Michigan players to consult the list of licensed internet gaming providers available on the agency’s official website at Michigan.gov/MGCB.

Additionally, anyone aware of illegal gambling operations is urged to report it to the MGCB at 888-314-2682 or by emailing MIGamblingTip@michigan.gov.

Jalen Williams is a trending reporter at the Detroit Free Press. Contact him at jawilliams1@freepress.com.