Michigan Orders Five Offshore Casinos to Cease and Desist

The Michigan Gaming Control Board (MGCB) announced yesterday that it has taken “decisive action” against a handful of offshore operators. The gambling companies in question have all been sent cease-and-desist letters for violating the state gambling laws.

Five Offshore Operators Must Exit Michigan

The MGCB, which remains committed to protecting the local market from the influence of unregulated online gambling companies, clarified that it had taken action against five sites, which offered a variety of unregulated casino games.

The authority elaborated that the violators’ portfolios included popular games, such as slots, poker, blackjack, Keno, bingo and game show-style games, among others. In addition to that, they also offered sportsbooks, allowing users to place wagers on their favorite sports.

The MGCB listed the five recipients of its cease-and-desist letters, which are the following:

• BetWhale Casino – Curaçao
• Black Lotus Casino (owned by TD Investments) – Belize
• Coins Game Casino – Curaçao
• Love2play Casino – Curaçao and Costa Rica
• Orion Stars 777 Players – Sichuan Province, China

According to the MGCB, the operators accept multiple payment options including Visa, MasterCard, PayPal and crypto payments. Despite that, they impose strict withdrawal conditions and require players to wager their initial deposits multiple times before they can make withdrawals.

The Websites Violated Several Michigan State Laws

The MGCB said that its investigation into the illegal activities of the aforementioned operators revealed that they had violated multiple Michigan state laws. These included the Lawful Internet Gaming Act, according to which only licensed casinos can legally offer iGaming in Michigan. Operators who offer gambling without the necessary license are considered in breach of the law.

In addition to that, the five companies violated the Michigan Gaming Control and Revenue Act, according to which, operators of unlicensed gambling risk up to 10 years in prison, a fine of up to $100K, or both.

Finally, the operators violated the Michigan Penal Code, which states that gambling that involves consideration, prize, and chance is broadly prohibited under Michigan law. The MGCB emphasized that accepting bets tied to uncertain outcomes is illegal.

Offshore Sites Are Dangerous to the Consumers

Henry Williams, executive director of the MGCB, commented on the matter, saying that the five platforms are not only illegal but also dangerous to the customers. He argued that the withdrawals they offer are unreliable and that the consumer protections on their sites are lacking.

Williams reiterated Michigan’s commitment to a safe and reliable gaming market and emphasized that these illegal offerings must stop.

Our top priority is safeguarding Michigan residents by ensuring that all online gaming activities are conducted legally and safely. These operators must stop their activities or face additional legal consequences.

Henry Williams, exec director, MGCB

The five operators have 14 days from the date of the receipt of the cease-and-desist letters to stop doing business in Michigan. The MGCB warned that failure to comply could incur further legal action.