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Michigan Joins Coalition Asking DOJ To Tackle Offshore Illegal Gaming

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The Michigan Gaming Control Board (MGCB) has added its weight to a growing number of states that are lobbying the U.S. Department of Justice (USDOJ) to investigate the offshore online casino and sports betting markets.

This coalition which also includes Colorado, Illinois, Louisiana, Mississippi, New Jersey, and Nevada, has sent a letter contacting the USDOJ stating that the regulators believe a combined effort, including at a government level, is needed to enforce US gambling laws throughout all the regulated gambling states in North America.

In Michigan, strict laws and rules govern internet gaming and sports betting and provide consumer protections, promote confidence and ensure fair and honest gaming. We are willing to help the U.S. Department of Justice in any way we can as it pursues enforcement of U.S. laws against offshore illegal gaming enterprises that take advantage of our citizens.

Henry WilliamsExecutive Director at the MGCB

In the letter, the coalition has listed several areas where it has concerns about the activities of offshore gaming sites. Three of these points are related to the customers, including offshore sites requiring no age verification and also they have no program in place to promote responsible gaming. Plus, players are not guaranteed to be paid out on any winnings they may achieve.

Other issues raised were the potential for money laundering and the loss of tax revenue for states that regulated gambling provides to help the wider community in these regions.

State-regulated gambling operators are subject to stringent rules, checks, and oversights legally required by the state regulators, whereas offshore operators are not required to comply with any of these issues.

Another difference is that state regulators are required in certain instances to provide enforced payout requirements and also ensure customers have access to comprehensive dispute resolution procedures. Offshore illegal gaming sites have no such requirement, which is to the detriment of customers in these states.

In summary, the coalition of regulated states feels they provide a structured gaming environment and are looking towards the USDOJ to provide leadership with a coherent plan that allows all parties to prohibit non-regulated offshore gaming operators.

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