On Thursday, June 27, the Michigan Legislature finalized an agreement on the state’s Fiscal Year 2025 budget, earmarking $1.9 million to support the addition of 14 full-time equivalent (FTE) staff positions at the Michigan Gaming Control Board (MGCB). These new positions are crucial for expanding the MGCB’s regulatory capacity, particularly in internet gaming and sports betting, among the fastest-growing gaming markets in the U.S. This move aims to enhance protections against illegal activities and ensure a fair gaming environment.

Expansion of Regulatory Capacity

The additional funding will enable the MGCB to bolster its regulatory operations significantly. With the influx of 14 new FTE positions, the agency can better manage the increasing demands of the growing gaming market in Michigan. The Wolverine State has seen rapid growth in both sports betting and internet gaming, necessitating a more robust regulatory framework to maintain integrity and prevent illegal wagering.

In addition to the staffing boost, the MGCB will allocate another $3 million from its FY2025 budget to continue its “Don’t Regret the Bet” responsible gaming campaign. Launched on March 1, 2023, this campaign provides valuable tips and information to help Michigan citizens gamble responsibly and avoid the pitfalls of problem gambling.

Support for Compulsive Gambling Prevention

A significant portion of the new budget focuses on responsible gaming initiatives. The Compulsive Gambling Prevention Fund will see a $3 million increase, doubling its previous allocation. These funds will enhance the 24/7 Gambling Disorder Helpline operated by the Michigan Department of Health & Human Services. Additionally, the funding will support gambling research, educational programs for youth, and existing treatment options for those struggling with gambling addiction.

MGCB Executive Director Henry Williams expressed his gratitude, stating, “The MGCB’s increased contribution, from $3 million to $6 million, to the Compulsive Gambling Prevention Fund demonstrates our proactive approach towards responsible gaming. Together, we are safeguarding the industry’s integrity while prioritizing the well-being of Michigan citizens.”

The bipartisan budget agreement now awaits Governor Gretchen Whitmer’s signature before becoming law. Once signed, the funding allocations will take effect on October 1, marking the beginning of the state’s FY2025 budget year.

Ongoing Regulatory Actions

As Michigan navigates its dynamic gaming industry, the MGCB continues to take decisive actions against illegal operators. In May, the MGCB issued a cease and desist order to Bovada, an offshore sportsbook, demanding it stop accepting customers from Michigan. The Costa Rica-based sportsbook was given 14 days to comply or face legal action for violating several state gaming laws. Bovada has since exited Colorado and is banned in New York and Maryland.

The MGCB also oversees the state’s daily fantasy sports market, which has seen regulatory changes. Late last year, the board banned pick’em style DFS contests due to their resemblance to player prop bets, demonstrating the MGCB’s commitment to maintaining a fair and regulated gaming environment.

Source: 

Michigan Gaming Control Board to increase regulatory capacity with additional staff, contribute $6M to Compulsive Gambling Prevention Fund, michigan.gov, June 27, 2024.

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Bovada, an offshore and unregulated sportsbook and casino operator, has ceased operations in Michigan and Colorado. This decision comes after the respective gaming regulators in both states issued legal notices to the parent company, Harp Media B.V., demanding the cessation of its activities.

Regulatory Actions in Michigan and Colorado

The Michigan Gaming Control Board (MGCB) sent a cease-and-desist letter to Bovada on May 29. The board gave Harp Media B.V., based in Willemstad, Curaçao, 14 days to stop Michigan residents from accessing their gambling services or face legal repercussions. The MGCB cited violations of several Michigan gaming laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code. The board warned that operating unlicensed gambling services in the state could result in imprisonment of up to 10 years or a fine of up to $100,000, or both.

Colorado followed suit shortly after Michigan. Although the exact date of Colorado’s notice is not specified, the state also issued a cease-and-desist letter to Bovada, prompting the operator to add Colorado to its list of restricted states.

Expanding List of Restricted States

As of June 20, Bovada updated its Terms & Conditions to exclude residents of Nevada, New Jersey, New York, Maryland, Delaware, Michigan, and Colorado. Bovada has complied with direct orders from state regulators to cease operations in these states, but it remains illegal across the entire United States under the 2006 Unlawful Internet Gaming Enforcement Act. The offshore operator only exits state markets when explicitly instructed by regulatory authorities.

Lisa Keith, the public information officer for the MGCB, emphasized the board’s vigilance: “The Michigan Gaming Control Board is encouraged to see that Bovada has now identified Michigan as a restricted state on their website. While this is a good indication that they are taking our cease-and-desist letter seriously, we will continue to closely monitor the status of their offerings in Michigan and take appropriate action as deemed necessary.”

Potential Connecticut Exit

Connecticut could be the next state to see Bovada’s exit. The state’s Department of Consumer Protection (DCP) issued a cease-and-desist letter to Harp Media B.V. on June 14, threatening criminal and civil penalties if the operator does not halt its illegal online gambling services. The DCP’s letter highlighted the violations of state law and required Bovada to allow Connecticut residents to withdraw their funds.

Kaitlyn Krasselt, DCP Communications Director, confirmed the issuance of the cease-and-desist letter: “There are only three companies licensed to operate in Connecticut: DraftKings, Fanatics, and FanDuel, including Mohegan Sun Casino powered by FanDuel Group.”

Massachusetts Considering Action

Massachusetts is also contemplating measures against Bovada. During a June 12 meeting, the Massachusetts Gaming Commission (MGC) discussed potential actions but did not reach a decision. The commission is aware of the enforcement actions taken by Michigan and Colorado, and Commissioner Nakisha Skinner proposed a formal assessment to determine the necessary steps. MGC Chair Jordan Maynard agreed, indicating that the matter could soon be on the agenda for a public meeting.

Chris Cylke, Senior Vice President of Government Relations for the American Gaming Association, stated: “Successful enforcement actions against Bovada by Michigan and Colorado are proof that states have tools to fight back against offshore operators and should serve as blueprints for other states to follow. But states should not have to take on this battle alone – the DOJ [Department of Justice]

must also use its powers to aid the fight against illegal gambling, which Congress has clearly identified as a department priority.”

Source:

Bovada now restricted in Michigan and Colorado after cease-and-desists, sbcamericas.com June 21, 2024.

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The largest casino-entertainment company in the United States and operator with one of the most diversified casino-entertainment providers in the world, Caesars Entertainment, announced the completion of the acquisition of WynnBET’s iGaming business in Michigan. The move represents a major expansion of the company in an important online gambling market.

Besides acquiring WynnBET’s iGaming operations, Caesars also closed a long-term extension of an iGaming market access deal with the Sault Ste. Marie Tribe of Chippewa Indians.

Upon announcing the completion of the acquisition, the company said that existing WynnBET brand users won’t experience any interruptions. Assuming the ownership of the WynnBET iGaming business in the state, Caesars said that it plans to keep the existing platform’s name, at least for the moment.

Eric Hession, Caesars Digital’s President, acknowledged the importance of the latest announcement. He thanked the gambling regulator in the state, the Michigan Gaming Control Board, as well as the Sault Ste. Marie Tribe of Chippewa Indians, for their efforts that ultimately resulted in the closing of this landmark acquisition.

“Caesars Entertainment would like to thank the Sault Ste. Marie Tribe of Chippewa Indians and the Michigan Gaming Control Board for their collaboration through this process.“

Eric Hession, president of Caesars Digital

Transitioning from WynnBET to a New Brand Expected Later This Year

Although initially, Caesars will retain the existing platform by using the WynnBET brand in Michigan, the company hinted at the possibility of introducing a new online casino brand. Once this is completed, the company said it will proceed with the transitioning of the existing WynnBET customers to the new iGaming brand.

Still, Caesars confirmed that such a move remains subject to the relevant regulatory approvals. The company disclosed that it expects to complete the aforementioned processes at some point during the second half of this year.

Still, a solid date or an exact name for the new iGaming brand in Michigan was not disclosed.

Recently, Caesars’ shareholders rejected a proposal to study the benefits of going smoke-free. The announcement came despite the growing opposition from anti-smoke organizations who have repeatedly raised concerns about the negative impact of smoking on casino patrons and employees.

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A cease-and-desist letter has been issued by the Michigan Gaming Control Board (MGCB) against Bovada, an offshore online gaming operator registered in Curaçao. The move comes after an investigation found that Bovada.com and Bovada.lv were both available to Michigan residents without proper licensing.

Executive Director Williams Warns Illegal Online Gaming Will Face Strict Enforcement

Executive Director of the MGCB Henry Williams said this was a significant step because regulators around the world have become increasingly concerned with online gaming platforms. He added:  

“This action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated. The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

Bovada is run by Harp Media BV and has been accused of violating several state statutes such as the Lawful Internet Gaming Act and Michigan Gaming Control and Revenue Act. These laws specify that only internet gambling establishments which are licensed by the state (including federally recognized tribal casinos) may provide such services within Michigan. Running an unlicensed betting operation in this state can lead to imprisonment for up to 10 years or fines amounting to $100,000.

Harp Media BV has 14 days from receipt of notice of the cease-and-desist order issued by MGCB to prevent access to its gambling offerings from any device located anywhere within the geographical boundaries of the state of Michigan. However, should it fail to do so then legal proceedings shall be initiated against them by the MGCB.

MGCB Stresses Consumer Safety in Crackdown on Unlicensed Online Gambling

The MGCB also emphasized the need for consumer protection. The regulator pointed out that unauthorized websites lack the necessary measures specified by Michigan’s rules to assist players in managing their gambling habits. According to the organization, such systems’ absence can pose a significant danger to people with gambling-related problems.

Despite this fact, MGCB cannot directly enforce its rules against a company like Harp Media B.V., which is based outside the country. However, previous experiences show that regulatory pressure may work in this case. 

Last year, Virtual Gaming Worlds stopped operating in Michigan after being warned by regulators about the same issue. 

It is unclear what Bovada will do next given these legal obstacles. The recent action taken by the MGCB is intended to make internet-based gambling more secure and fair, especially for residents within Michigan.

For their part, people living in Michigan should be careful when selecting where they gamble online. The Regulator advises them to only use platforms licensed by the MGCB, a list of which can be found on its website.

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For more than a decade, the Sault Ste. Marie Tribe of Chippewa Indians (SSM Tribe) has been making efforts to expand its land-based presence with the development of two new casinos. While the Tribe currently operates five Kewadin Casinos around Michigan’s upper peninsula, it has been pursuing expansion to Lansing and New Boston.

The efforts of the SSM Tribe included purchasing land at the two aforementioned locations back in 2012. At the time, the Tribe purchased 2.3 acres of land in Lansing, as well as 71 acres in New Boston. Ultimately, the land was expected to be used by the Tribe for its new casinos which are expected to bring economic stimulus.

According to the SSM Tribe, the land for the two sites was purchased via its Self-Sufficiency Fund. While the Tribe asked the US Department of Interior (DOI), to take the land into trust, which is required for the building of casinos, the agency refused to do so. Citing the Michigan Indian Land Claims Settlement Act (MILCSA), the DOI rejected the request of the Tribe to take the land into trust in 2017. At the time, the agency explained that per MILCSA, the tribe cannot use the Self-Sufficiency Fund for gambling activities.

The Legal Fight Continues

Disagreeing with the DOI, the SSM Tribe launched a lawsuit in 2018. It said that the agency’s decision was in breach of the MILCSA and may stifle its further growth and welfare. However, the DOI’s decision was later reaffirmed by US District Judge Trevor N. McFadden.

However, as announced by PlayMichigan, the SSM Tribe hasn’t given up on the legal fight. The latest episode of the legal saga saw the Tribe raise the matter with the DC Circuit Court. In its legal claim, the SSM Tribe asked the Circuit Court to overturn McFadden’s ruling that reaffirmed the DOI was correct to reject taking the lands into trust under MILCSA.

If the DC Circuit Court overturns the ruling, the Tribe may finally achieve an important milestone in the planned expansion of its land-based portfolio. In case this happens, the land must be taken into trust, paving the way for the development of the Tribe’s two new venues planned in Lansing and New Detroit.

Elsewhere in Michigan, last month, Fanatics Betting and Gaming rolled out its iGaming and sports betting application. The launch made Michigan the thirteenth state where Fanatics has established its sports betting operations and the third state where Fanatics Casino is available.

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Fanatics Holdings, the global digital sports platform, announced that its subsidiary, Fanatics Betting and Gaming, the leading betting and gaming platform, rolled out Fanatics Sportsbook and Casino in Michigan. The launch, completed on Thursday, enabled residents and visitors of the state to download Fanatics Sportsbook for Android and iOS devices and engage in exciting online gaming and betting activities.

The latest launch represents the thirteenth state where Fanatics Sportsbook is available. On the other hand, the launch in Michigan further grows Fanatics’ presence within the online gambling sector and marks the third state where Fanatics Casino is available.

The latest launch follows a process initiated by Fanatics Betting and Gaming last year. At the time, the company agreed to acquire the US assets of PointsBet, paving the way for its expansion across the country. As a result of the acquisition, PointsBet’s customers in Michigan had their username, password, as well as account balance and rewards points transferred automatically to Fanatics Sportsbook. The migrated customers also retained their responsible gaming preferences, ensuring responsible entertainment.

The transfer of responsible gaming preferences underlines Fanatics’ dedication to responsible gambling. As a leading and fast-growing operator, the company encourages customers to use responsible gaming tools that enable them to manage their gambling. Moreover, Fanatics offers a best-in-class Help Center that provides chat support with agents ensuring 24/7 coverage.

Players in Michigan Can Access Engaging Features

Thanks to the latest launch, Michigan sports fans and casino aficionados can now tap into Fanatics’ leading betting and iGaming application. The high-quality mobile application features a convenient design, easy navigation and stands out with engaging and rewarding features.

Players in Michigan can benefit from FanCash, Fanatics Sportsbook’s reward system that allows them to earn up to 5% on their wagers in the form of FanCash. Such FanCash can then be exchanged for bonus bets or different merchandise via the operator’s official website.

Further quality features available via Fanatics’ app include Discover and Search. Thanks to the Discover feed, bettors gain access to valuable insights, including trending bets, statistics and marquee games. Additionally, the application’s innovative Search functionality brings autocomplete options, as well as search via deep linking and aliases.

On the other hand, Fanatics Casino players can access quality features and enjoy classic casino slots, video poker and table games. Teaming up with Evolution, Fanatics Casino brings popular live casino games such as Roulette, Baccarat, Poker and Blackjack, among others. iGaming fans can also tap into quality releases from Light & Wonder, Gaming Realms and Hacksaw Gaming, among other leading content suppliers. Similarly, to wagering on sports, online gamblers can earn FanCash and convert it to different rewards.

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The gambling regulator in Michigan, the Michigan Gaming Control Board (MGCB), strengthened its efforts toward safer gambling by introducing a new problem gambling helpline. The Board confirmed the launch of 1-800-GAMBLER, a new gambling helpline that is operated by the National Council on Problem Gambling (NCPG). As a result, Michigan joins a growing network of states where 1-800-GAMBLER, the National Problem Gambling Helpline, is available.

Residents from Michigan who are suffering from problem gambling, at-risk gambling, as well as their families, can call the gambling helpline and receive information, support or resources. Such callers can be referred to local treatment or professional support, an effort that reaffirms MGCB’s dedication to a safer gambling environment.

Besides a call, residents can also chat with an expert online via 1800gamblerchat.org or send a text at 800GAM. The new 1-800-GAMBLER helpline will replace the current Michigan Problem Gambling Helpline available at 1-800-270-7117. Still, the aforementioned number will continue to operate as before. Callers of 1-800-GAMBLER can reach vetted and trained experts 24/7, 365 days a year and receive information, support and guidance.

According to a statement released by the gambling regulator, operators in Michigan will be required to display the new 1-800-GAMBLER number within their responsible gaming messages. The online gambling operators are given a deadline of August 8, 2024, to update their campaigns and include the new problem gambling helpline.

Estimates of the NCPG reveal that approximately 2 million adults across the country are suffering from problem gambling. Additionally, between 4 and 6 million others may be impacted by problem gambling, including at-risk or compulsive gambling. The Council estimated that the social cost of problem gambling is an estimated $7 billion annually.

NCPG Applauds the Adoption of the Gambling Helpline

Keith Whyte, NCPG’s executive director, spoke about the importance of the helpline for problem gambling. He explained that the line helps people across the country receive relevant information and gain access to support. “We applaud MGCB for taking proactive efforts to address the needs of those affected by problem gambling and for recognizing the significance of promoting 1-800-GAMBLER in Michigan,” said Whyte in conclusion.

“By adopting 1-800-GAMBLER as the statewide problem gambling helpline, the MGCB reinforces its commitment to ensuring a safe and secure gaming environment for players across the state by ensuring that resources for treatment and recovery can be accessed quickly and easily.“

Henry Williams, executive director of the MGCB

Henry Williams, MGCB’s executive director, also highlighted the efficiency of the problem gambling helpline that connects people affected by gambling to trained experts who provide confidential support, resources and assistance. Finally, he said that implementation of the 1-800-GAMBLER helpline in Michigan reaffirms the gambling regulator’s dedication toward a safer gambling sector.

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The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to three entities engaged in unlicensed online gaming operations. 

MGCB Uncovers Illegal Online Gaming, Ensures Rapid Regulatory Response

Following thorough investigations, the MGCB discovered that these companies were offering online gaming services to Michigan residents without the required licenses. The regulatory action comes as part of the board’s ongoing efforts to enforce gaming laws and ensure the protection of Michigan citizens.

PredictionStrike Inc., identified as one of the US-based companies, was found to have breached regulations by providing internet gaming and sports betting services in Michigan without obtaining the necessary licenses. 

Meanwhile, Sweepstakes Limited was accused of promoting an unlicensed online lottery and raffle through its Stake.us platform, accessible to Michigan customers. 

VGW LuckyLand, Inc., an overseas entity, faced allegations of conducting illegal gambling by offering an internet game that involved monetary wagers for the chance to win valuable prizes.

MGCB Executive Director Henry Williams emphasized the importance of stringent gambling regulations, stating: “Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan.” 

Williams further underscored the potential risks to citizens posed by unregulated sites, leaving them vulnerable without proper recourse and diverting funds away from taxed, legal establishments that contribute to community welfare.

MGCB Enforces Legal Action Against Violators of Gaming Laws

The MGCB’s actions are rooted in the violation of key Michigan gaming laws, including the Lawful Internet Gaming Act and the Lawful Sports Betting Act, which mandate that online gaming and sports betting can only be offered by licensed operators. 

Additionally, the Michigan Gaming Control and Revenue Act criminalizes gambling operations conducted without the MGCB’s approval, with penalties of imprisonment or fines.

In response to the cease-and-desist letters, the implicated companies have taken measures to restrict access to their platforms for Michigan residents. 

However, the MGCB encourages citizens with information on illegal gambling websites to report tips, fostering community engagement in maintaining regulatory integrity.

Additionally, various resources, including self-exclusion programs and responsible gaming databases, are available on the MGCB website and DontRegretTheBet.org to promote responsible gambling habits.

In other news, last week Michigan Gov. Gretchen Whitmer reappointed Joni M. Thrower Davis and Andrew T. Palms to MGCB, extending their terms until December 31, 2027. With Palms serving his 12th year and Davis entering her second four-year term, MGCB Executive Director Henry Williams commended their dedication and expertise, expressing confidence in the stability and effective decision-making of the board under their continued leadership.

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Joni M. Thrower Davis and Andrew T. Palms were reappointed as board members of the gambling regulator in Michigan, the Michigan Gaming Control Board (MGCB), by Gov. Gretchen Whitmer. Earlier this week, MGCB’s executive director, Henry Williams, confirmed the reappointment of the two.

Initially, Palms was appointed to the MGCB by the now-former Gov. Rick Snyder back in 2012. Considering his reappointment, he enters his 12th year as a member of the board of the gambling regulator. On the other hand, Davis first joined the MGCB as a board member at the start of 2020 after she was selected as the successor of Patrick M. McQueen. The reappointment starts Davis’ second four-year term.

According to the MGCB, the two board members were reappointed for a term that is set to expire on December 31, 2027. Currently, the board of the gambling regulator consists of five members who are residents of the state and are appointed by the Governor. Per the existing rules, one of the members is designated as a chairperson, a role that is currently held by Linda Forte. The recent reappointments reinstated Davis and Palms to the board who join Deidre A. Lambert-Bounds, another board member, while one member spot remains vacant.

The Duo Will Continue to Assist the Regulator

Palms, a Chelsea resident, currently holds a bachelor’s degree of general studies in computer science, business and engineering from the University of Michigan. For more than 30 years, he has worked at the university and currently serves as the executive director of ITS Infrastructure.

On the other hand, Davis is a Detroit resident. She holds a Juris Doctor from Emory University School of Law along with a bachelor’s degree from the University of Michigan. Davis is currently a managing partner for Jamjomar while at the same time operating and owning four McDonald’s restaurants located in Detroit’s metropolitan area.

“I appreciate Governor Whitmer’s decision to reappoint Joni and Andrew to the Board, which is well-deserved recognition of their dedication, expertise, and valuable contributions to our agency’s mission and vision.“

Henry Williams, executive director of the MGCB

Williams praised Gov. Whitmer’s decision to reappoint both Palms and Davis to MGCB’s board. He recognized their extensive expertise and dedication, making them invaluable assets to the regulator.

Williams predicted that the MGCB’s board will continue to make effective decisions and remain stable, boosted by the duo’s appointments. Finally, he said that the gambling regulator will continue to tackle emerging challenges within the sector across Michigan.

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The Michigan Gaming Control Board, the regulator in charge of the gambling and sports betting market in the American state, reported that the licensed operators it oversees managed to generate solid revenue in November 2023.

According to the state regulators, commercial and tribal operators in the Great Lakes state reported a total of 209.2 million dollars in revenue (gross receipts and gross sports betting receipts) in November. The result marks an increase of 1.9 percent compared to October 2023.

The iGaming sector was the one that caught the eye with gross receipts of 175.3 million dollars, the highest number to date. The previous record was 171.8 million dollars and it was recorded in March 2023. In October 2023 gross receipts from online casinos amounted to 160.3 million dollars.

Gross sports betting receipts for November 2023 amounted to 33.9 million dollars, a sharp decrease from the 45 million dollars that were generated by this sector in October 2023.

Combined total adjusted gross receipts for November were 158.1 million dollars, with almost the entire sum coming from iGaming: 157.8 million dollars, while sports betting only accounted for 294,810 dollars. The adjusted gross receipts figures show an increase of 9.4 percent for iGaming and a drastic decrease of 98.7 percent for online sports betting compared to October 2023.

Tens of Millions of Dollars in Taxes

The total sports betting handle for online operators amounted to 568.8 million dollars in November, an increase of 6.7 percent compared to October 2023 and also the highest online sports betting handle to date in the state of Michigan.

Licensed operators in the state submitted 33.6 million dollars in taxes and payments to the State of Michigan during November, with most of the sum (32.9 million dollars) coming from internet gaming taxes and fees. Internet sports betting taxes and fees amounted to 740,056 dollars in the month of November, while the three land-based casinos in Detroit paid the city 8.4 million dollars in wagering taxes and municipal services fees during November. Tribal operators also reported making payments worth 4.1 million dollars to governing bodies in November.

At the end of November 2023 there were a total of 15 commercial and tribal operators operating in Michigan in iGaming and/or online sports betting. Fourteen of these operators were active in internet sports betting while fifteen were offering iGaming services.

Source: “Michigan iGaming, sports betting operators report $209.2M in November revenue“. Michigan Gaming Control Board. December 19, 2023.

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