Michigan regulators are targeting six online sweepstakes casinos in a third round of legal action over the last two months.
Key Takeaways
- Michigan found these sweepstakes companies to be operating online gambling platforms unlawfully and without a license.
- The regulatory agency says residents are at risk of losing money with no guaranteed payouts.
- The MGCB has sent out more than a dozen cease-and-desist letters since early June.
The Michigan Gaming Control Board (MGCB) announced on Wednesday that the agency has charged Crypto Slots, NitroBetting, NewVegas, Las Vegas USA Casino, Grand Rush Casino, and Slotgard Casino with offering illegal gambling to residents and ordered those sites to stop operating.
“These sites were attempting to exploit Michigan players while operating outside the law,” said Henry Williams, MGCB Executive Director. “We take this seriously. When unauthorized operators offer games without regulation, Michigan players are left exposed – and we will not tolerate it.”
The MGCB said those six online gambling platforms operate without a license and violate the Lawful Internet Gaming Act, the Lawful Sports Betting Act, and provisions of the Michigan Penal Code.
Residents at risk
The MGCB told residents that when they play on those sites, they run the risk of winning money with no guarantee of payout, playing games that may be unfair or rigged, or having no legal protection in cases of fraud, data theft, or account disputes.
“Unlike Michigan’s licensed operators, these sites offer no consumer safeguards,” Williams said. “They’re not held accountable to anyone, and that puts players in a dangerous position.”
The sites have 14 days to comply with the order to cease operating or face further legal action from the Michigan Attorney General. The gaming regulatory agency said there are several other ongoing investigations, and it will continue to monitor online gaming in the state.
Still going
Wolverine State regulators have sent out 17 cease-and-desist letters since early June to online sweepstakes casinos. The MGCB also targeted offshore sportsbooks and online casinos, going after BetUS in May and BetOnline and SportsBetting.ag in April.
Online social casinos and sportsbooks that offer free coins to start, but also sweepstakes coins that can be purchased through multiple funding options, have been under fire. Sweepstakes coins can be exchanged for cash, which puts those operators in the purview of state regulators, especially the ones with legal sports betting and/or iGaming.
Like Michigan, several other U.S. states have taken issue with sweepstakes companies. Montana, Nevada, and Connecticut have made dual-currency gaming sites illegal. New York and California have legislation pending that would ban sweepstakes sites, while West Virginia recently sent 20 cease-and-desist letters to unregulated gaming sites.
