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Michigan Gaming Control Board Targets Unlicensed Gambling
Unlicesed iGaming Venues under Fire
The Michigan Gaming Control Board (MGCB), a leading force in regulating and enforcing gaming laws in the United States, has issued a cease-and-desist letter to OC Media Holdings LLC, operating as One Country Give, an unlicensed gambling operator based in Fayetteville, Arkansas. This move is part of the MGCB’s ongoing efforts to crack down on illegal online gambling platforms accessible to Michigan residents.
According to an MGCB news release dated August 27, 2024, the regulatory body initiated a thorough investigation into One Country’s activities after receiving a tip regarding the company’s operations being available to Michigan residents. The investigation revealed that One Country was operating online lotteries through its website and social media platforms, practices that violate multiple Michigan state laws.
The MGCB identified One Country's sweepstakes offerings as online lotteries, which are considered illegal under Michigan law without proper licensing. The company generates revenue by selling monthly memberships, providing participants with entries into various sweepstakes. These membership levels range from $15 to $75 per month, with entry packages offering anywhere from 300 to 6,000 sweepstakes entries.
The Three Key Laws
- Lawful Internet Gaming Act: Only licensed operators are permitted to offer internet gaming within the state.
- Michigan Gaming Control and Revenue Act: Prohibits any gambling operation without a license from the MGCB.
- Michigan Penal Code: Broadly outlaws any form of unlicensed gambling.
Henry Williams, Executive Director of the MGCB, reaffirmed the agency's commitment to maintaining the integrity of Michigan’s gaming industry. “The Michigan Gaming Control Board will not, and does not, tolerate activities that circumvent our laws and threaten the integrity of the highly regulated gaming industry in Michigan,” said Williams. “We are committed to upholding state law to ensure a fair and honest gaming environment for all Michigan citizens, and we will keep issuing cease-and-desist letters and taking appropriate legal actions to halt illegal gaming in the state of Michigan.”
One Country Give has been given 14 days from receipt of the letter to cease offering gambling services to Michigan residents. Should the company fail to comply, the MGCB has indicated it will collaborate with the Michigan Attorney General’s Office to pursue further legal action.
“The Michigan Gaming Control Board will not, and does not, tolerate activities that circumvent our laws and threaten the integrity of the highly regulated gaming industry in Michigan.”
This is not the first time the MGCB has acted against an unlicensed gambling site. Earlier this year, the Board targeted Bovada, another offshore online casino operator. Despite initially missing the MGCB's 14-day compliance deadline, Bovada eventually ceased accepting bets from Michigan players in June. This enforcement effort saw ten other states, including Ohio, joining Michigan's initiative against Bovada.
Unlicensed gambling sites such as One Country Give and Bovada represent a significant challenge for regulators like the MGCB. These operators not only circumvent state laws but also deprive the state of tax revenue that licensed online casinos contribute. The MGCB continues to urge Michigan residents to be vigilant when participating in online gaming and to verify the legality of platforms before engaging.
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