Michigan Blocks Online Casino Apps From Israel, Costa Rica

Michigan Blocks Online Casino Apps From Israel, Costa Rica
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In back-to-back days, regulators took action to protect consumers and its legal Michigan online casino apps. The Michigan Gaming Control Board (MGCB) is behind three cease-and-desist letters that target offshore casino and sports betting sites.

“Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry,” MGCB Director Henry Williams said. “To that end, we ask all Michigan residents to stay informed and safe by reporting any suspected illegal gambling activities to the agency because we take every tip very seriously.”

How to Find Legal Michigan Online Casino Betting Apps

Michigan’s first legal online casino betting apps went live on Jan. 21, 2021. Users have 15 online options, including big casino and sports betting brands such as Caesars Palace and BetMGM.

In addition, the state monitors a variety of social casinos, sweepstakes casinos, and social sportsbooks based in the United States. Michigan is vigilant about protecting its licensed gambling market, so some options have been left to the state or game formats have been adjusted to comply.

Lastly, Michigan has 12 online sports betting apps ranging from licensed house brands to major players such as DraftKings and FanDuel.

Even with a wide range of digital gambling options, offshore companies still try to carve out a tax-free, unregulated market in Michigan.

Israel Online Casino Betting Violations

Williams, the MGCB Director, told Papaya Gaming it violated the Lawful Internet Gaming Act. The Tel Aviv, Israel, company accepts money for casino games, including 21 Cash, Bingo Cash, Bubble Cash, and Solitaire Cash.

Papaya Gaming has 14 days from receipt of the Oct. 3 letter to block Michigan residents from gambling on their apps. The MGCB said it will take legal action if the company fails to meet the deadline.

Only federally authorized tribal and commercial casinos in Michigan can apply for an internet gaming operator license.

According to the letter, Papaya Gaming apps also violate the Michigan Gaming Control and Revenue Act. This act prohibits underground gambling of any kind. A felony is punishable by imprisonment for up to 10 years, a fine of up to $100,000, or both.

“The Michigan Gaming Control Board firmly believes in a regulated and safe gaming environment,” Williams said. “Illegal gambling is not tolerated in Michigan, and we will take all necessary actions to protect our residents from such unlawful practices.”

He said an anonymous tip led investigators to the Papaya Gaming sites.

Costa Rica Online Casino Sites Also Warned

Williams issued a pair of Oct. 4 cease-and-desist letters to companies associated with the “Ace Gaming Network” of online casino betting apps.

Ace Per Head manages Ace23. Both entities received MGCB letters.

The Ace23.ag site encourages users to become bookmaking “agents.” It then organizes, sets up, and administers the agent’s gaming skin (gaming brand) at a cost of $10 per active player per week.

Act23 receives its “per player” payments from the bookies/agents through cryptocurrencies or approved retailer gift cards.

As with the Papaya Gaming letter, the MGCB told Ace23 it is in direct violation of Michigan’s Lawful Internet Gaming Act. The company has 14 days to block its sites within Michigan state lines.

About the Author
Russ Mitchell

Russ Mitchell

Lead Writer
Russ Mitchell joined Gaming Today as a lead writer in February 2023 after joining Catena Media in 2021 as a managing editor for the PlayIA and PlayVA brands. He covers sports betting industry, market developments, the college sports betting industry, and the four major North American pro sports leagues. He brings 25+ years of journalism experience to Gaming Today. He is a five-time winner of the Iowa’s prestigious Harrison “Skip” Weber Investigative Reporting award, a two-time National Newspaper Association award winner and a 50-time Iowa Newspaper Association award winner.

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