The Michigan Gaming Control Board (MGCB) has sent another cease-and-desist letter to an illegal operator. The warning letter went to OC Media Holdings LLC which operates as One Country Give. It is based in Fayetteville, Arkansas. This is the second unregulated platform the MGCB has acted against.
Taking legal action
The regulator conducted a thorough investigation of One Country after receiving a tip that the company’s operations were accessible to Michigan players. One Country’s business model is to generate revenue from monthly membership sales. Players get entries into various ‘sweepstakes’ it advertises on its website and social media platforms. It operates various lotteries and raffles at the same time and offers four membership levels with differing monthly fees.
Online lotteries and/or raffles are not licensed under Michigan gambling law. Participating in them is illegal. It isn’t like playing at a regulated Michigan online casino which is legal. When playing on unregulated sites, residents do not have the protection they have when playing at legal online casinos.
Legal casinos have various security measures in place, such as encryption, to protect players. They also must abide by the rules and regulations of the gaming board.
Violation of Michigan laws
The MGCB intends to continue taking legal action to stop illegal gaming in the state of Michigan. Henry Williams, executive director of the MGCB, said in a press release that the MGCB doesn’t tolerate activities that circumvent the laws. These illegal activities threaten the integrity of the regulated gaming industry in the state. With gambling legalization in the U.S., each state can determine which gambling it allows within its borders.
The first Michigan state law that One Country violates is the Lawful Internet Gaming Act. According to this act, only licensed gaming operators can offer online gaming. The second law it violates is the Michigan Gaming Control and Revenue Act. According to the act, it is illegal for parties to conduct gambling activities without a license issued by the MGCB. Only casinos licensed under the Michigan Gaming Control and Revenue Act and tribal casinos with federal authorization can apply for an online gaming operator license.
A limited time to respond
One Country has 14 days from receipt of the letter from the MGCB to stop offering gambling services to Michigan residents. If it doesn’t do so, the MGCB will take appropriate legal action against the company. It will work with the Michigan Attorney General to do so.
In May this year, the MGCB sent a cease-and-desist letter to Bovada. It didn’t respond to the letter, but in June, it stopped taking bets from Michigan residents. Various other states also took action to block Bovada after the MGCB’s action. The MGCB says residents of Michigan should be careful to verify the legality of sites or they could end up participating in illegal activities. Exposure to various cyber threats on illegal sites can compromise the private information of players and they have no recourse if they experience unfair practices.