MGCB issues cease-and-desist orders to 45 offshore gambling operators

The Michigan Gaming Control Board (MGCB) has issued 45 cease-and-desist orders to offshore gambling operators found to be accepting wagers or offering casino-style gaming to residents without a valid state license. 

The “sweeping” enforcement action was said to be part of the MGCB’s “relentless pursuit” to eliminate illegal gambling and protect the state’s regulated online gambling market. 

“The scope of this action sends a clear message: Michigan will not tolerate illegal operators targeting our residents or undermining the lawful businesses that have invested in complying with state law,” MGCB Executive Director Henry Williams said. 

“Our investigators work with unwavering focus to identify, document and act against every unlicensed site that puts Michigan players at risk. This is an ongoing effort, and we will continue to take action against illegal gambling operators.”

Operators were found to be in violation of Michigan’s Lawful Internet Gaming Act, Lawful Sports Betting Act and associated statutes, facing additional civil and criminal enforcement measures under failure to comply with the cease-and-desist orders. 

The regulator stated consumers who use illegal gambling sites are faced with the risk of “unfair or manipulated games, withheld winnings, misuse of personal and financial data and no meaningful avenue for dispute resolution.”

On March 11, Polymarket was denied a temporary restraining order by Michigan federal court Judge Paul Maloney, determining that sporting event contracts are not “swaps” regulated by the Commodity Futures Trading Commission (CFTC).

Judge Maloney stated the court was “most persuaded” by actions taken against Polymarket in Nevada, which described events as a “happening of some significance that took place or will take place, in a certain location, during a particular interval of time, such as a particular sporting event or an organized activity or celebration for the public or a particular group.”