Michigan regulator crack‑down targets eight illegal online casinos

chris-horton
By Chris Horton
29 Oct 2025
Share
Chris Horton 29 Oct 2025
Share this article
Or copy link
Copy
  • MGCB issued cease-and-desist to 8 unlicensed casinos.
  • Higher enforcement in US iGaming aids compliance.
  • Operators face increased compliance costs and risks.
MGCB
  • Lessons from Europe
  • The cost of compliance
  • The investor view
  • Consolidation of control
The Michigan regulator has taken enforcement action against unlicensed online casinos, underscoring a shift in US iGaming compliance.
The Michigan Gaming Control Board (MGCB) has taken decisive action against unlicensed gambling, issuing cease and desist letters to eight online casino platforms found to be operating illegally in the state. 

The enforcement, confirmed on 24 October 2025, demonstrates a clear escalation in how US regulators are tackling unregulated operators that continue to siphon market share from licensed incumbents.

Michigan was among the first US states to legalise online casinos, setting out a framework that ties taxation directly to state education funding. Yet as the market matures, the state has also become a test case for how regulators balance open access with consumer protection. 

The MGCB’s latest intervention highlights growing frustration that some offshore operators persist in targeting Michigan residents through websites and affiliate networks despite lacking local authorisation.

Lessons from Europe

The decision to issue public enforcement notices rather than quiet warnings signals a new tone in regulatory behaviour. Earlier oversight focused on ensuring that licensees met financial and integrity standards. 

Today, priorities centre on active surveillance of unlicensed activity, payment flow monitoring and geo-location enforcement. 

This shift brings the United States closer to European jurisdictions such as the Netherlands and Sweden, where authorities have intensified public sanctions to defend the integrity of regulated ecosystems.

The cost of compliance

For legitimate operators, the enforcement wave provides both reassurance and challenge. On one hand, visible crackdowns protect licensed brands from unfair competition and help maintain public confidence in the regulated market. 

On the other, increased scrutiny demands heavier investment in compliance infrastructure. Operators must now monitor affiliate traffic, implement stronger “know your source” protocols and prove that none of their marketing supports unlicensed entities.

Players are also affected. Enforcement may restrict access to offshore platforms that offer higher bonuses or crypto-based anonymity, but it enhances safeguards such as verified identity, self-exclusion tools and recourse to dispute resolution. 

The underlying message is that safety, not speed, is the new policy priority.

The investor view

From an investor perspective, the Michigan precedent reinforces the idea that regulatory risk is now as material as market risk. Firms that operate across multiple states must anticipate divergent interpretations of compliance standards and allocate capital accordingly. 

The cost of compliance will rise, but so will the value of demonstrable integrity. Investors seeking long-term exposure to the US iGaming sector may increasingly prioritise governance maturity over short-term profitability.

Consolidation of control

In global terms, Michigan’s action mirrors a shift across established markets. Governments want to prove that legalisation is compatible with control. For US regulators, that means using every available mechanism, including public warnings and payment-block requests, to preserve trust in legal iGaming. 

As the American market enters its second decade, enforcement rather than expansion may define its next chapter.

Casino Events Starts in

US