Michigan gambling regulator continues enforcement action against illegal operators, as Coinbase agrees to halt sports-related event contracts in the state
The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to another 33 offshore gambling operators this week for operating illegally in the state.
MGCB investigations determined each of the 33 operators offered casino-style games, sweepstakes-style games, or sports betting to Michigan residents without a state license.
The announcement builds on the regulator’s ongoing enforcement against illegal online gambling, after sending cease-and-desist letters to 45 offshore operators earlier this year.
The MGCB pointed out that players who have signed up for Michigan’s self-exclusion programs are not protected on unlicensed sites.
“Choosing to self-exclude is one of the hardest and most courageous decisions a person can make, and in Michigan’s legal market, that choice is respected,” said MGCB executive director Henry Williams. “Offshore sites don’t respect it.
“They will take a deposit from someone who has asked for help, and the MGCB has no way to help that person get it back. These 33 letters put operators on notice that our residents are not an untapped market, and that anyone who thinks they can ignore our protections will hear from us.”
The letters were sent to the operators of Azartzona Casino, Basepoker, BingoMania, BitofGold, Cryptoplay, Del Oro Casino, Detective Slots, Donbet, Exclusive Casino, Genie Jackpot, Guangzhou Snail Interactive Technology Co., Ltd., Immersion Casino Online, iWild Casino, JacksPay, Jurassic Slots, L0tt0, Lucky Charm Sweep, Lucky Rebel, Magicianbet, mBit Casino, Odds Maker, Raging Bull Slots, Regal Casino and Sportsbook (also known as Wager Street), Ronin Slots, Runewager, Slot Paradise, Sloto Tribe, Sloto’Cash Online Casino, Spin Dinero, SpinsTopia, Stardust, SunnySpins Casino, and The Online Casino.
Earlier this week, the MGCB confirmed that Coinbase Financial Markets had agreed to stop offering new sports-related event contracts to Michigan customers by 12:00 am (Eastern time) on October 10, and to close out any remaining open customer positions by that same deadline.
The agreement negotiated between the state and Coinbase is the latest in a series of actions Michigan has taken this year against unlicensed operators “disguised as federally regulated prediction markets”.
It follows a nearly identical agreement recently reached with Robinhood Derivatives, as well as a state-court preliminary injunction against KalshiEX.
“Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” said Williams. “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
In exchange for shutting down its sports contracts in the Michigan, the state has agreed not to take enforcement action against Coinbase so long as the company remains in compliance, and while related appeals proceed before the US Court of Appeals for the Sixth Circuit.
The court denied Coinbase’s request for a preliminary injunction in August.
Coinbase’s appeal of that ruling is pending before the Sixth Circuit and has been stayed pending resolution of related appeals involving Robinhood, Polymarket and Kalshi.
As with the Robinhood agreement, this stipulation does not resolve the underlying legal dispute over whether Michigan may regulate CFTC-registered event contracts as gambling.
“Our efforts, alongside the Gaming Control Board, are making a clear impression on the executives of the illegal sports betting industry, and we’re glad to reach yet another agreement that protects Michigan residents,” said Michigan Attorney General Dana Nessel. “Michigan gaming law is simple and clear, and written to keep gaming in our state fair and well-regulated. Whether by agreement or court order, we intend to bring all sports betting into compliance with the law.”