Compliance Updates
MGCB Sends Cease-and-Desist Letters to Three Online Gaming Companies
As part of its continued, relentless efforts to halt illegal gaming operations in the state of Michigan, the Michigan Gaming Control Board (MGCB) has recently sent cease-and-desist letters to three online gaming companies — two in the US and one overseas — after investigations revealed the entities are offering online gaming in Michigan without licenses to do so legally.
PredictionStrike Inc., in Bay Shore, New York; Sweepstakes Limited (Stake.us), in Limassol, Cyprus; and VGW LuckyLand, Inc. (VGW) in San Francisco, California — whose parent company is VGW Holdings Ltd., a global technology online social gaming company headquartered in Australia — were each sent cease-and-desist letters on Oct. 19, Nov. 2, and Dec. 5, 2023, respectively.
“Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan. We do not want businesses who skirt the law having access to Michigan citizens and leaving them vulnerable because they are playing on unregulated sites that leave them with no recourse, and that siphon funds away from communities because they are not paying taxes like a regulated, legal gambling establishment would,” MGCB Executive Director Henry Williams said.
The companies’ violations include:
- Offering internet gaming and internet sports betting in Michigan without being licensed in the state as an internet gaming operator and a sports betting operator (PredictionStrike).
- Promoting an unlicensed online lottery and/or raffle for customers that buy its products through its internet website (Stake.us).
- Conducting illegal gambling by offering an internet game in which a player wagers something of monetary value for the opportunity to win something of monetary value (VGW).
Due to their unregulated and unlicensed online gaming offerings, PredictionStrike, Stake.us, and VGW are in violation of the following Michigan gaming laws, including:
- Lawful Internet Gaming Act, which states that internet gaming may only be offered by a licensed internet gaming operator, and the Lawful Sports Betting Act, which states that internet sports betting may only be offered by a licensed sports betting operator or its licensed sports betting platform provider. Only casinos that are currently licensed under the Michigan Gaming Control and Revenue Act and federally authorized tribal casinos within Michigan can apply for an internet gaming operator license or a sports betting operator license.
- Michigan Gaming Control and Revenue Act, which prohibits a party from conducting a gambling operation without a license issued by the MGCB. A party who operates an unlicensed gambling operation is guilty of a felony punishable by imprisonment for up to 10 years or a fine of up to $100,000, or both.
- Michigan Penal Code, which broadly prohibits any form of unauthorized gambling involving consideration, prize, and chance. For example, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited.
PredictionStrike Inc., Sweepstakes Limited (Stake.us), and VGW LuckyLand, Inc. (VGW) have each taken steps to prevent Michigan residents from gambling on their websites.
Compliance Updates
JCM Global Receives Approval to Operate in West Virginia
JCM Global announced that it has successfully passed regulatory review and received a manufacturer’s license from the West Virginia Lottery Commission. The license enables JCM to directly sell to and service customers in the state.
“At JCM, we are committed to our customers. While attaining licensing was not required, we pursued it because it allows us to directly provide JCM’s leading technology and advanced systems, backed by our world-class service, and support, resulting in faster service times and simplifying the entire relationship between JCM and our customers,” said JCM SVP – Sales, Marketing & Operations Dave Kubajak in a statement.
JCM recently announced it has attained licenses in Colorado and New Mexico, bringing the company’s total number of active gaming licenses to 177.
In West Virginia, JCM will provide technology, including the iVIZION bill validator; ICB Intelligent Cash Box System, which boosts security and efficiencies across the gaming floor; and the GEN5 thermal printer, which delivers TITO, personalized promotions, and rewards directly to the player.
Compliance Updates
SYNOT Games Officially Certifies Over 140 Games in Brazil
SYNOT Games has announced that more than 140 of its games have now been officially certified in Brazil.
“We are delighted to announce that more than 140 of our games have now been officially certified in Brazil. This significant achievement allows us to expand our reach and introduce a diverse selection of games to this dynamic market. Brazil represents a key opportunity for growth, and we are committed to delivering exceptional gaming experiences to the Brazilian audience,” the Company said.
“We are thrilled to introduce our portfolio in Brazil, offering innovative and engaging gameplay that promises to captivate and entertain players,” Martina Krajci, CCO at SYNOT Games, said.
Compliance Updates
Delasport Now GLI-Certified for Sports Betting in Brazil
Delasport has just become one of the first suppliers to obtain a GLI certification for its sportsbook in Brazil, two weeks before the historical regulation comes into effect.
Continuing its global growth, Delasport is bringing several operators on board in Brazil. In order to complete the process, operators that are applying for a new Brazilian license have 30 days to provide all relevant platform certificates from the moment that they are notified by the regulator that their initial submission has been accepted. This is also the moment that they can pay the license fee. Still, failure to provide platform certificates will result in the application being placed on hold.
Delasport turned to Gaming Laboratories International (GLI) for the certification of its sportsbook against Brazilian technical standards. The historical partnership with GLI was further strengthened by the news, a few months back, that GLI had become the first laboratory to achieve the local accreditation to certify for betting systems, live game studios, and online games by the Secretaria De Prêmios e Apostas (SPA) in Brazil.
Delasport has successfully met all technical requirements for providing its sports betting solution to the largest country in South America. The certificate is evidence of the team’s experience, expertise, and determination to lead the way in key jurisdictions.
Obtaining a GLI certification for Brazil is a step towards cementing the trust players and operators have for Delasport’s products. This serves to show that the award-winning supplier is capable of meeting even the strictest industry standards for integrity and fairness.
“When we learnt that providing platform certificates to the regulator was on our partner operators’ critical path for obtaining the license, we immediately prioritized submitting the system to GLI for testing”, Delasport’s Chief Compliance Officer Filippo Ferri said. “Needless to say, GLI did a tremendous job of working with us to conduct the tests in record time, to match the submission deadline of some of our clients. I am also very proud of how our internal departments worked together to obtain this certificate, and of how they continue to push forward with the delivery of a datavault system that complies with SIGAP requirements.”
Operators that plan on entering the newly regulated Brazilian market will now have numerous advantages if they partner with Delasport. They will be able to provide their players with personalization features like My Sportsbook, My Event Builder, and My Combo that skyrocket revenues and retention.
Furthermore, Delasport’s KYC and AML provider is a market leader that guarantees the highest level of compliance for all operators that choose to go on this route.
Also, Delasport has already partnered with numerous local payment system providers and offers a real-time AI-powered Responsible Gambling system which can easily adapt to local regulations.
Last, but not least, operators will feel Delasport’s support from the get-go all the way to establishing themselves as a market leader. Delasport is knowledgeable of cultural and regional differences and can address all localization needs from the early stages of engagement.
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