The Michigan Gaming Control Board (MGCB) continued to defend its lucrative legal online gambling market on Monday by issuing cease-and-desist orders to two Panama-based sports betting operations.
SportsBetting.ag and BetOnline.ag, neither of which is licensed in the United States, were accused of being in violation of the Michigan Lawful Internet Gaming Control and Revenue Act and Michigan Penal Code, according to a release, and are accused of “conducting illegal gambling activities” in the state.
“The Michigan Gaming Control Board is committed to enforcing Michigan’s gaming laws and protecting consumers from illegal gambling,” MGCB Executive Director Henry Williams said in the release. “We encourage residents to only engage with licensed and regulated online platforms for a safe and fair gaming experience.”
Though the proliferation of illegal gambling sites in the U.S. is understood to remain widespread, state in the last year have begun to successfully push against operators largely based in the Caribbean and previously considered beyond the influence of the U.S. legal system.
The MGCB said the sites have 14 days to comply or risk intervention by the state attorney general office.
The MGCB said its investigation was prompted by an anonymous tip.
Sites offer wide array of illegal options
SportBetting.ag was found to be accepting wagers from Michigan bettors on sports, horse racing, politics, table games, card games and virtual casino offerings. It also has cash-back incentives for casino losses, according to the MGCB.
BetOnline.ag has been offering similar fare, with the addition of slots, blackjack, poker, esports wagering and “various contest tournaments,” according to the release. The site allows users to fund accounts using cryptocurrency, which is illegal in Michigan.
Michigan’s vigorous defense continues
The move against SportsBetting.ag and BetOnline.ag came less than a week after the MGCB ordered 11 unlicensed offshore and domestic online casinos to stop gambling operations in the state. Michigan — one of 40 U.S. jurisdictions with live legal sports betting, one of seven with online casinos and one of eight with online poker — has vigorously defended its $2.9 billion gambling market. It has issued 32 cease-and-desist orders to unlicensed operators since March.
Last May, Michigan was among several states that were able to successfully squash the in-state operations of Bovada, one of the more ubiquitous offshore operators in the U.S.
Two weeks ago, the MGCB announced an investigation of Kalshi and Robinhood’s sports event contract activities in the state but have not yet followed the six states that have issued cease-and-desist orders for the controversial new gambling format.
