Michigan’s gambling regulator issued cease-and-desist letters to 33 offshore operators on Oct. 8, saying they had illegally offered online casino games, sweepstakes-style games or sports betting to state residents without Michigan licences.
The Michigan Gaming Control Board’s investigations found that every operator offered at least one of those services to Michigan customers. Under the Lawful Internet Gaming Act, the Lawful Sports Betting Act and related statutes, companies must hold an MGCB licence to offer internet gaming or sports wagering in the state. Gambling is generally illegal in Michigan unless state law specifically authorizes it.
The action centred on consumer protection as well as licensing. Licensed operators must honour the Internet Gaming and Sports Betting Responsible Gaming Database, through which people can voluntarily exclude themselves from online gambling. Offshore operators have no obligation to do so, meaning a self-excluded person can still create an account, deposit funds and place bets on an unlicensed site.
The board said users of offshore sites also lack the deposit limits and other responsible-gaming tools required of licensed businesses. Such sites do not provide independent testing for game fairness, Michigan-standard protections for personal and financial data, or recourse through the regulator when winnings are withheld or accounts are closed.
The latest letters followed an April enforcement action in which the MGCB said it had issued cease-and-desist orders to 45 offshore operators over the preceding four months. The regulator frequently investigates unlicensed online-gaming providers and has described the campaign as an effort to stop services that are available to Michigan residents without state approval.
The board placed the action in a wider national market that it says is expanding. An August 2025 American Gaming Association analysis estimated that Americans wagered about $673.6 billion annually with illegal and unregulated gambling operators, including offshore sites, up 22% from the association’s previous report in 2022. The analysis found that the proportion of online casino players using only legal sites had fallen from 52% to 24%, while nearly half used both legal and illegal sites.
The AGA also estimated that $84 billion was wagered with illegal bookies and offshore sportsbooks during the study year, and that one in 10 sports bettors used only illegal sources. Earlier consumer research found that 70% of sports bettors who placed most wagers with illegal operators believed they were betting only with legal sportsbooks or were splitting their activity evenly between legal and illegal sites.
Operators that disregard the new cease-and-desist directives may face further enforcement action involving the Michigan Department of Attorney General.
