Michigan Intensifies Crackdown Against Black Market Operators

The Michigan Gaming Control Board (MGCB) has stepped up efforts to shut down illegal offshore gambling sites, issuing cease-and-desist orders to 10 unlicensed websites owned by Belize-based company Apex Dynamics Ltd. This move reinforces the MGCB’s commitment to protecting the integrity of the state-regulated gaming industry and shielding Michigan residents from unscrupulous operators.

The Offending Operators Could Face Significant Penalties

The cease-and-desist letters issued by the MGCB serve as a warning to Apex Dynamics Ltd. and other unauthorized operators that violating Michigan’s gaming laws will not be tolerated. The regulator’s investigation found that the offending companies violated several state laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

The 10 operators have 14 days to comply with the MGCB order. If they fail to do so, the Board will collaborate with the Michigan Attorney General’s Office to pursue further legal action, which could lead to fines and other severe penalties. MGCB executive director Henry Williams noted that the Board remained vigilant and would continue intervening when necessary.

We will continue to take strong action to shut down illegal operations that undermine trust in Michigan’s legal gaming system.

Henry Williams, MGCB executive director

According to the MGCB, illegal operators usually accept diverse payment options, including Visa, MasterCard, PayPal, and cryptocurrencies. According to Williams, however, such platforms impose stringent withdrawal conditions, requiring players to wager their initial deposits several times before cashing out. He added that such practices create significant consumer risks, undermine the regulated sector, and cost the state substantial tax revenues.

The MGCB Urged for Player Caution

This latest crackdown follows previous enforcement actions earlier this month when the MGCB sent warnings to five more unlicensed operators violating state gambling laws. The offending platforms offered popular games such as slots, poker, blackjack, and keno, along with sportsbook offerings, allowing players to wager on various sports.

To protect residents from black market operations, the MGCB urges players to verify the legitimacy of online gaming platforms. The regulator reminded players that such entities offer insufficient player protections and have been known to withhold payouts. Michigan residents can access the official list of licensed operators on the MGCB website at Michigan.gov/MGCB.

With the black-market gambling sector continuing to pose risks to consumers and the legal gaming industry, the MGCB remains resolute in its enforcement efforts, ensuring that Michigan’s gaming landscape remains fair, transparent, and well-regulated. The Board’s actions also set a positive example for other US jurisdictions, as illegal operators remain a pressing nationwide issue.