The Michigan Gaming Control Board (MGCB) announced Tuesday it has sent a cease-and-desist letter to OC Media Holdings LLC, operating as One Country Give (One Country) out of Fayetteville, AR.
The MGCB stated that One Country has been selling monthly memberships that offer entry into various sweepstakes games, that the unlicensed operator advertises on its website and social media platforms. The board stressed that sweepstakes are online lotteries and/or raffles that are unlicensed under Michigan law and therefore, in its mind, illegal in the state.
The agency said it was tipped off about One Country’s activities in the state. It sent the letter after conducting a thorough investigation into One Country’s activities as part of what it called its commitment to safeguarding consumers and upholding the integrity of gaming regulations in Michigan.
One Country operates multiple online lotteries and/or raffles concurrently and offers four tiers of membership with varying monthly fees, as well as a one-time payment for entries and merchandise sales.
The MGCB said One Country’s practice of offering online lotteries and/or raffles directly tied to the price of its merchandise and services to paying customers without a proper gambling license violates numerous state laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act and the Michigan Penal Code.
“The Michigan Gaming Control Board will not, and does not, tolerate activities that circumvent our laws and threaten the integrity of the highly regulated gaming industry in Michigan,” said Executive Director Henry Williams. “We are committed to upholding state law to ensure a fair and honest gaming environment for all Michigan citizens, and we will keep issuing cease-and-desist letters and taking appropriate legal actions to halt illegal gaming in the state of Michigan.”
One Country has 14 days from receipt of the letter to cease operations in Michigan. The MGCB said it is prepared to work with the Michigan Attorney General’s Office to take appropriate legal actions if One Country does not comply.
Michigan continues tough stance
Michigan taking a tough stance on operators it deems to be operating illegally in the state is nothing new.
It is one of several states to have pushed Bovada into shutting down operations within its borders. At the end of May, it sent a similar cease-and-desist letter to the operator.
Bovada did not meet the MGCB’s 14-day deadline but ultimately stopped taking customers in Michigan in mid-June. That began a wave of other states doing the same thing. As of last week, Bovada now blocks users from accessing its services in:
- Colorado
- Connecticut
- Delaware
- Maryland
- Michigan
- Nevada
- New Jersey
- New York
- Nevada
- Ohio
- Washington, D.C.
- West Virginia
Meanwhile, Michigan has also reiterated that it considers “gray machines” such as casino-style skill games, to be illegal under the state’s gambling prohibitions despite being a lawful form of entertainment.
“The MGCB is committed to upholding the integrity of the state’s gambling regulations and ensuring a fair and responsible gaming environment for all citizens,” said Williams last month. “It is essential to clarify that these casino-style electronic gaming machines are not exempt from Michigan’s penal code, and individuals operating or utilizing them are subject to enforcement actions by the state.”
The MGCB has determined the machines fail to adhere to state gaming regulations as they operate in a manner resembling slot machines that determine winnings based on circumstances outside of a player’s control. The board says it has taken its stance on casino-style game machines to protect players from being misled or taken advantage of.
