The parade of cease and desist letters from the Michigan Gaming Control Board (MGCB) keep coming in. The latest were directed at Costa Rican gaming companies Ace23 and Ace Per Head. The letters informed the operators the state believes they are in violation of Michigan laws and gives them 14 days to cease operations in the state.
These two companies work as what are called “agents”. Essentially, the sites allow for a framework for individual bookies to set up an online betting site. It creates an infrastructure and support for bettors to fund accounts and place bets, but it is on the bookmaker, not Ace23 and Ace Per Head, to ensure payouts and provide financial backing.
Ace23, Ace Per Head and other agency sites make a profit by charging hosting fees to the bookmaker. In the case of Aces23 and Ace Per Head, the sites charge $10 per active player per week.
“The MGCB is committed to safeguarding the integrity of legal gaming in the state and protecting consumers from illicit offshore operations like Ace23,” MGCB Executive Director Henry Williams said. “Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry. To that end, we ask all Michigan residents to stay informed and stay safe by reporting any suspected illegal gambling activities to the agency because we take every tip very seriously.”
This is the second C&D announcement this week from the MGCB and the latest in a string of actions against the likes of Bovada and VGW. There is no vertical the MGCB hasn’t addressed. Cease and desist letters have gone out to offshore operators, sweepstakes operators, daily fantasy operators, skill game operators and now agency sites.
Just two days ago, MGCB issued a cease and desist to Papaya Gaming, a skill game operator based out of Israel.
