In a decisive move to uphold Michigan’s strict gaming regulations, the Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetNow.eu, an offshore sportsbook and casino operator. The regulatory body has declared BetNow’s operations illegal, citing violations of multiple state laws. The order demands that BetNow halt all gambling services in Michigan within 14 days, or face legal action from the Michigan Attorney General’s Office. This action underscores the state’s commitment to protecting consumers from unlicensed operators, ensuring that all gambling activity is conducted lawfully and responsibly.

Why BetNow is Facing Regulatory Action

1. Unlicensed Gambling Operations

BetNow does not hold a Michigan iGaming license, making its operations within the state unlawful.
Michigan law requires all online gaming operators to be licensed through state-approved commercial casinos or federally recognized tribal gaming entities.
2. Violation of the Lawful Internet Gaming Act

The Lawful Internet Gaming Act mandates that any gaming operator wishing to enter Michigan’s regulated iGaming market must obtain a state-issued license.
BetNow has not applied for or secured the necessary approvals, making its casino and sports betting services unauthorized.
3. Breach of the Michigan Gaming Control and Revenue Act

The Michigan Gaming Control and Revenue Act classifies unlicensed gambling as a felony offense, carrying severe penalties of up to 10 years in prison, a fine of $100,000, or both.
4. Violation of Michigan’s Penal Code

The state’s penal code prohibits gambling operations where wagers are determined by the outcome of an uncertain event.
Accepting money under the expectation that it will be reimbursed or distributed based on the results of a game of chance is also considered illegal under Michigan law.

Consumer Risks: Why Illegal Gambling Sites Are Dangerous

The MGCB has repeatedly warned consumers about the dangers of using unlicensed gambling platforms. The primary concerns include:

1. Lack of Player Protection

Unregulated operators are not required to adhere to consumer protection laws, leaving players vulnerable to fraud, unfair gaming practices, and potential financial losses.
2. No Legal Recourse for Players

Unlike state-licensed platforms, offshore betting sites operate outside U.S. jurisdiction, making it nearly impossible for players to recover lost funds in cases of fraud or disputes.
3. Risk of Identity Theft and Data Breaches

Illegal gambling sites often lack robust cybersecurity measures, exposing users’ personal and financial information to hacking threats.

Michigan’s Strict Stance on Illegal Operators

1. Zero Tolerance for Unlicensed Gambling

Michigan has established one of the most regulated online gambling markets in the U.S., with licensed operators subject to rigorous compliance standards.
The state has previously taken legal action against unauthorized betting platforms, reinforcing its commitment to safeguarding consumers.
2. Statement from MGCB Executive Director
Henry Williams, Executive Director of the MGCB, emphasized the regulator’s role in ensuring a safe and legal gambling environment:
"This unlicensed operator not only violates Michigan law but also exposes consumers to significant risks. Our job is to protect Michigan residents by ensuring that all online gambling is conducted legally and responsibly."

Next Steps: Legal Action Against BetNow

1. Cease-and-Desist Order: 14-Day Deadline

BetNow has been given 14 days to comply with the cease-and-desist order and cease all gambling operations targeting Michigan residents.
2. Potential Legal Consequences

If BetNow fails to comply, the MGCB will collaborate with the Michigan Attorney General’s Office to pursue legal action, which could lead to criminal prosecution, fines, and asset seizures.
3. Warning to Other Unlicensed Operators

The MGCB’s actions serve as a clear warning to other offshore operators attempting to circumvent state regulations.
Michigan will continue to monitor, identify, and penalize unauthorized gambling businesses.