Michigan Goes After Illegal Sportsbooks
Michigan sports betting regulators are cracking down on illegal gambling operations and sent out another round of cease-and-desist letters on Friday.
Consumer Protection
The Michigan Gaming Control Board (MGCB) went after two Costa Rica-based operators, Ace23 and Ace Per Head, that were offering unlicensed sportsbook and online casino services in the state. This comes one day after they went after Israel-based Papaya Gaming and ordered them to shut down four illegal gambling apps.
According to MGCB Executive Director Henry Williams, the agency remains committed to protecting Michigan residents from illicit offshore gambling operations. “Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry,” Williams said in a statement.
He urged residents to report any suspected illegal gambling activities, emphasizing that the MGCB takes every tip seriously.
Ace23 Details
In their investigation the MGCB found that Ace23 allows account holders to set up bookmaking operations, where agents or bookies can take bets and manage payouts. The backend operations of Ace23 charge account holders $10 per active player. Ace23 facilitates transactions through cryptocurrencies and retailer gift cards, a way to avoid regulatory oversight.
Ace23 was found to be in violation of several Michigan laws including the Lawful Internet Gaming Act, the Michigan Penal Code and the Michigan Gaming Control and Revenue Act. They have 14 days to cease operations in Michigan. This is part of the MGCB’s overall effort to protect the state’s legal gaming industry from the negative impact of unregulated offshore gambling operators.
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