On Thursday, the Michigan Gaming Control Board (MGCB) announced it was taking action against 11 different offshore betting sites.
The MGCB claim a host of websites are violating state law. The sites in question were mainly offshore casinos including Shazam Casino and DogsFortune.
MGCB Executive Director, Henry Williams stated, “The Michigan Gaming Control Board remains fully committed to ensuring a fair, safe, and lawful gaming environment for all Michigan residents.”
“Our actions today underscore our unwavering dedication to holding illegal operators accountable. Shutting down these unlicensed platforms is critical not only to maintaining the integrity of Michigan’s regulated gaming industry but also to protecting residents from predatory practices and unreliable gambling experiences.”
The MGCB has given the operators 14 days to comply with the order. If not, they will escalate the matter to the Michigan Attorney General’s Office.
Warning over suspicious practices
The sites used a range of payment methods including credit cards, crypto, and PayPal. Users reported having to make multiple deposits before getting a chance to withdraw from their accounts. This should raise alarms immediately.
Offshore betting and casino sites may have stipulations to bonuses and various payment methods but users must check terms carefully.
Michigan’s war against offshore betting sites
These orders are the latest in a line of similar actions taken by Michigan. A further 20 websites have been issued cease-and-desist letters in the last month alone. Users can check all the sites that have been issued the orders on the MGCB’s website.
Gambling sites without a license issued by the MGCB risk penalties of up to 10 years of imprisonment and fines of $100,000. The actions rarely go past the cease-and-desist letters, however.
Last year, the MGCB did bring felony charges against one resident but this was for other reasons. Jeffrey Saco exploited system vulnerabilities at Caesars Sportsbook to make $2 million in fictitious deposits. Saco wagered a wild $88 million over 16 days in over 10,000 bets.
Online casinos popular in Michigan
Online casinos are legal in Michigan if regulated by the MGCB. In fact, the state led the nation in 2023 with $1.92 billion wagered on games such as blackjack, and poker. From this, Michigan collected $354 million in tax revenue.
In the state, there are over 900 licensed commercial casinos and over 800 online gaming and sports betting companies.
Internet gaming and sports betting are also big contributors to the state. In 2023, Michigan received almost $400 million in tax revenue, and tribal governing bodies received an additional $32 million.
As a booming industry, the MGCB will no doubt continue to protect interests by issuing more cease-and-desist letters. They may yet join the growing number of states to issue the orders to Kalshi, Robinhood, and Crypto.com for their prediction markets.
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