MGCB Takes Action: Cease-and-Desist Letters to Online Gaming Companies

MGCB Takes Action: Cease-and-Desist Letters to Online Gaming Companies

Michigan’s gaming watchdog, MGCB, is relentless in its crackdown on illegal online gaming operations.

Targeting Unlawful Operators: MGCB’s Vigilant Pursuit of Legal Compliance

The Three Offenders: PredictionStrike, Stake.us, and VGW LuckyLand, Inc.

“Violations Under Scrutiny: Unpacking the Legal Framework”

Bolded Keywords: MGCB, cease-and-desist letters, online gaming companies, illegal gambling, Michigan gaming laws.

In an unyielding effort to quash illegal gaming activities within the state, the Michigan Gaming Control Board (MGCB) has recently taken decisive action by issuing cease-and-desist letters to three online gaming companies. These companies, two located in the United States and one overseas, have come under the MGCB’s scrutiny due to their involvement in online gaming operations in Michigan without the requisite licenses.

The recipients of these stern warnings are PredictionStrike Inc., headquartered in Bay Shore, New York; Sweepstakes Limited (Stake.us), situated in Limassol, Cyprus; and VGW LuckyLand, Inc. (VGW), based in San Francisco, California. VGW LuckyLand, Inc. is the subsidiary of VGW Holdings Ltd., a global technology online social gaming company with its headquarters in Australia. The cease-and-desist letters were dispatched on different dates: October 19, November 2, and December 5, 2023, respectively.

The rationale behind the MGCB’s unwavering stance is succinctly expressed by Henry Williams, MGCB’s Executive Director: “Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan. We do not want businesses who skirt the law having access to Michigan citizens and leaving them vulnerable because they are playing on unregulated sites that leave them with no recourse, and that siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would.”

The infractions committed by these companies encompass:

• PredictionStrike Inc. offering internet gaming and internet sports betting in Michigan without the requisite licenses.
• Stake.us promoting an unlicensed online lottery and/or raffle for customers purchasing its products through its internet platform.
• VGW conducting illegal gambling by offering an internet game where players wager something of monetary value for a chance to win something of monetary value.

These transgressions have brought PredictionStrike, Stake.us, and VGW into direct violation of several Michigan gaming laws, including the Lawful Internet Gaming Act, the Lawful Sports Betting Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

As a response to these violations, all three companies have taken steps to block Michigan residents from engaging in gambling on their websites, albeit after the issuance of cease-and-desist letters. This action is aimed at preventing further unlawful activity and protecting Michigan citizens from unregulated online gaming operations. The MGCB’s unwavering commitment to maintaining the integrity of gaming regulations continues to be at the forefront of its mission, ensuring a secure and accountable gaming environment within the state.