Three online gaming companies—two from the U.S. and one overseas—recently received cease-and-desist letters from the Michigan Gaming Control Board (MGCB), following investigations indicating that the companies were operating unlicensed iGaming in the state.
The companies were: PredictionStrike Inc., in Bay Shore, New York; Sweepstakes Limited (Stake.us), in Limassol, Cyprus; and VGW LuckyLand, Inc. (VGW) in San Francisco, California, whose parent company is VGW Holdings Ltd., a global technology online social gaming company headquartered in Australia.
MGCB Executive Director Henry Williams said, “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.”
According to the MGCB, PredictionStrike offered internet gaming and internet sports betting in Michigan without being licensed in the state as an internet gaming operator and a sports betting operator. Stake.us promoted an unlicensed online lottery and/or raffle for customers that buy its products through its internet website. And VGW conducted illegal gambling by offering an internet game in which a player wagers something of monetary value for the opportunity to win something of monetary value.
The gaming board added, as unregulated and unlicensed online gaming operators, all three companies violated 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.
The board stated the three websites no longer allow wagers from Michigan residents.
In other MGCB news, Governor Gretchen Whitmer reappointed Joni M. Thrower Davis and Andrew T. Palms to the board. Davis, reappointed to a second 4-year term, owns and operates four McDonald’s restaurants in the Detroit area and is the managing partner for Jamjomar Inc. Palms is executive director of ITS Infrastructure at the University of Michigan, where he has been associated for more than 30 years. Both will serve through December 31, 2027.
Williams said, “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. I am confident in their effective decision-making and the ability to navigate the ever-changing landscape of Michigan’s gaming industry. I look forward to continuing our work together for the citizens of this great state.”
