Michigan sports betting regulators continued their recent action against illegal operators with another set of cease-and-desist letters Friday.
The Michigan Gaming Control Board issued cease-and-desist letters to Costa Rica-based Ace23 and Ace Per Head, according to a release Friday. The companies operate and manage an unlicensed sportsbook and online casino service provider in the Michigan sports betting market.
On Thursday, the MGCB issued a cease-and-desist letter to Israel-based Papaya Gaming to shut down four illegal gambling apps.
“The Michigan Gaming Control Board is committed to safeguarding the integrity of legal gaming in the state and protecting consumers from illicit offshore operations like Ace23,” MGCB Executive Director Henry Williams said in the release. “Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry. To that end, we ask all Michigan residents to stay informed and stay safe by reporting any suspected illegal gambling activities to the agency because we take every tip very seriously.”
Michigan Ace 23 crackdown
The MGCB found during investigations Ace 23 allows account holders to “establish bookmaking operations … whereby the agents/bookies can accept wagers and make payouts.” Ace23 maintains the backend and administration, charging the accounts $10 per active player.
Ace23 handles its transactions through cryptocurrencies and retailer gift cards. The MGCB determined Ace23 is in violation of the Lawful Internet Gaming Act, the Michigan Penal Code and the Michigan Gaming Control and Revenue Act.
The companies have 14 days to shut down the site in Michigan.
Active Michigan sports betting regulators
Michigan regulators have been among the most active in cracking down on illegal and unlicensed gambling operators. Williams led a group of regulators last year in asking the federal government for assistance in battling illegal sportsbooks and online casinos.
In February, Gov. Gretchen Whitmer allocated money in the state’s budget to combat illegal gambling and gambling addiction. The budget included $1.9 million to tackle illegal gambling operators.
Earlier this summer, the MGCB sent the illegal gambling operator Bovada a cease-and-desist letter. The offshore sportsbook then shut down its access in Michigan.
Offshore sports betting fight
Multiple states have now sent cease-and-desist letters to Bovada this year.
Bovada has pulled out of 14 US jurisdictions.
Ahead of the NFL betting season, the IRS estimated the offshore sports betting market could be worth approximately $700 million.
