The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist letter to OC Media Holdings LLC, which operates under the name One Country Give (One Country) from Fayetteville, Arkansas. The company has been running monthly membership programs that offer entries into various online sweepstakes. These sweepstakes, promoted through One Country’s website and social media channels, are categorized as unlicensed online lotteries and/or raffles under Michigan law.
Investigation and legal implications:
In line with its mandate to protect consumers and ensure compliance with gaming regulations, the MGCB undertook a comprehensive investigation into One Country’s operations after receiving a tip about its accessibility to Michigan residents. MGCB Executive Director Henry Williams emphasized in the official MGCB’s press release, “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.”
One Country offers several membership tiers ranging from $15 to $75 per month, providing various numbers of entries into its online sweepstakes. Additionally, entries can be acquired through one-time payments or the purchase of merchandise. The MGCB has highlighted that this business model violates multiple state laws, including:
– Lawful Internet Gaming Act: This act permits internet gaming only by licensed operators. Currently, only casinos licensed under the Michigan Gaming Control and Revenue Act and federally recognized tribal casinos are authorized to apply for such licenses.
– Michigan Gaming Control and Revenue Act: This act forbids unlicensed gambling operations, with violators facing penalties including up to 10 years in prison and/or fines up to $100,000.
– Michigan Penal Code: The code broadly prohibits gambling involving consideration, prize, and chance, including accepting money based on uncertain events.
One Country has been given 14 days from the date of the cease-and-desist letter to halt its operations targeting Michigan residents. Should the company fail to comply, the MGCB is prepared to collaborate with the Michigan Attorney General’s Office to pursue further legal actions.
Michigan’s persistent stance on illegal gambling:
As SBC Americas reports, Michigan’s rigorous enforcement of its gambling regulations is not a new development. Recently, the state compelled Bovada to cease its operations within Michigan borders. Bovada did not meet the MGCB’s 14-day deadline but ceased accepting Michigan customers by mid-June. This action was part of a broader trend, with Bovada also blocking users in several other states including Colorado, New Jersey, and West Virginia.
Additionally, the MGCB has reiterated its position against “gray machines” or casino-style skill games, which, despite their entertainment appeal, are considered illegal under Michigan’s gambling laws. “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 in July. The board’s stance on these machines aims to protect players from potential exploitation and ensure adherence to state regulations.