Compliance Updates
MGCB Opens Investigations into Unlicensed Sports Prediction Markets

The Michigan Gaming Control Board (MGCB) has initiated investigations into unlicensed sports prediction markets operating within the state. These platforms, which bypass Michigan’s regulatory framework, have raised significant concerns about consumer protections.
Michigan’s investigations align with similar actions already taken by other state regulatory bodies and focus on how this form of unlicensed sports betting may jeopardize the integrity of Michigan’s legal sports betting system.
“We take consumer protection very seriously and are committed to ensuring that Michigan residents are engaging with safe and legal sports betting options. Unlicensed entities not only pose a risk to consumers but also undercut the integrity and revenue-generating potential of the state’s regulated sports betting industry. We are actively investigating these practices and will pursue appropriate measures to protect Michigan bettors,” said Henry Williams, Executive Director of the MGCB.
The unlicensed platforms offer what they describe as innovative financial products that allow users to trade their predictions on the outcomes of sports events. By sidestepping the regulatory protections of Michigan’s legal sports betting market, these platforms pose a serious risk to consumers. They create potential confusion among bettors and blur the line between sports betting as entertainment and sports betting as a financial trading vehicle.
Beyond concerns over lost tax revenue, these unregulated platforms may expose Michigan residents to various risks, including fraud, identity theft, and inadequate data security. Unlike licensed sportsbooks, which are required to adhere to strict regulations including age verification, Know Your Customer (KYC) protocols, anti-money laundering (AML) measures, self-exclusion policies, and integrity monitoring, unlicensed entities may operate without these safeguards. As a result, consumers can be left vulnerable to financial harm.
The MGCB is also concerned that promoting sports betting as an investment opportunity directly contradicts Michigan’s established responsible gaming principles.
“Sports betting is meant to be a form of entertainment, not a financial investment. By framing sports contracts as investment vehicles, these platforms risk confusing consumers and undermining the state’s commitment to responsible gaming. Moreover, many of these unlicensed platforms are often accessible to individuals as young as 18, in stark contrast to Michigan’s 21+ age requirement for legal sports betting,” Williams added.
Compliance Updates
MGCB Orders Four Offshore Online Casinos to Cease Operations in Michigan

The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to four unlicensed online casinos—Betty Wins, Orbit Spins, Pacific Spins Casino, and Yabby Casino—all operated by Tech Zone Inc., a company registered offshore in the Union of Comoros.
The enforcement action is part of the MGCB’s ongoing commitment to protect Michigan residents from illegal gambling platforms that lack oversight, player safeguards, and responsible gaming protections.
“These offshore operators lure players with flashy ads and promises of big winnings, but in reality, they put consumers at serious financial and personal risk. We will continue to take strong action against unlicensed sites to ensure gambling in Michigan is legal, fair, and secure,” said Henry Williams, Executive Director of MGCB.
Under Michigan law, only MGCB-licensed operators are authorized to offer internet gaming and sports betting. Tech Zone’s four brands were found to be illegally targeting Michigan residents, violating the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and sections of the Michigan Penal Code.
“Illegal operators may use familiar branding or social media ads to appear trustworthy. But if the site isn’t licensed by the MGCB, it isn’t safe. We encourage all players to check before they bet,” Williams said.
Compliance Updates
MDC Issues Commentary as U.S. Gambling Enters “Regulatory Reset” Following $148 Billion Wagered

Minimum Deposit Casinos (MDC) has issued an expert commentary on what it calls a “regulatory reset” in the U.S. gambling sector, as lawmakers and regulators respond to explosive growth in consumer betting behavior. According to the American Gaming Association, Americans wagered a record $148 billion on sports in 2024. This surge has sparked new scrutiny from both federal and state-level authorities.
Recent legislative efforts in New York, Louisiana, and Montana have targeted sweepstakes-based casinos and skill-based betting formats. Proposed changes include tighter bet size limits, stricter advertising rules, and licensing reforms aimed at reducing player harm and increasing transparency.
“The regulatory environment is catching up with consumer behavior. There’s growing concern over how online gambling is marketed, accessed, and governed. Areas like responsible gaming, ad targeting, and instant deposits are now being looked at much more critically,” said a spokesperson at MDC.
According to the latest figures from the American Gaming Association, U.S. commercial gaming revenue reached $19.44 billion in Q2 2025, marking a 9.8% increase compared to the same period last year. Online casino gaming accounted for $2.6 billion of that total, reflecting a 32.3% year-over-year jump. The numbers underscore continued momentum for digital platforms even as regulations tighten.
MDC’s commentary urges both players and operators to stay ahead of the curve. As laws evolve, demand is rising for licensed platforms that offer low-deposit access, better responsible gambling tools, and full regulatory compliance.
Compliance Updates
Nevada Rep. Dina Titus to Add FAIR BET Act to 2026 Defense Budget

Nevada Rep. Dina Titus is strategically pushing forward her Fair Accounting for Income Realized from Betting Earnings Taxation Act, commonly known as the FAIR BET Act. She intends to attach it to the 2026 National Defense Authorization Act (NDAA), a key piece of legislation that must pass annually. This maneuver, revealed on August 27, is designed to increase the chances that her proposal will be enacted into law.
The FAIR BET Act seeks to reverse a disputed provision introduced under former President Donald Trump’s One Big Beautiful Bill Act. The provision lowered the gambling loss deduction from 100% to 90%, which is set to take effect in January 2026. This change has met significant resistance from both the gaming industry and individual gamblers, who argue that it unfairly taxes money that they never actually won.
Representative Titus, who co-leads the Congressional Gaming Caucus, initially introduced this succinct bill in July. However, it stalled in the House Ways and Means Committee. To overcome this hurdle, she is leveraging a common legislative tactic by attaching the amendment to the NDAA. Around two decades ago, a similar strategy helped pass the Unlawful Internet Gambling Enforcement Act amid a port security bill.
The initiative enjoys strong support from major gaming industry leaders and state officials. Prominent executives from companies such as MGM Resorts, Caesars, and Wynn Resorts have expressed concern to lawmakers about the financial impact this deduction limit could have on both players and casinos. The American Gaming Association has also condemned the recent tax rule, stressing that it unfairly penalizes a legal and regulated industry.
The FAIR BET Act is gaining momentum across party lines. So far, ten members in the House have endorsed it as co-sponsors. In addition, a Republican counterpart titled the WAGER Act was introduced in July by Representative Andy Barr of Kentucky. In the Senate, Nevada Senator Catherine Cortez Masto has proposed a similar measure known as the FULL HOUSE Act.
Supporters emphasize the importance of this amendment for states like Nevada, where gambling significantly contributes to the economy. However, some critics argue that inserting tax policy changes into a defense authorization bill represents an overreach by lawmakers.
The amendment is currently under review by the House Rules Committee, with a vote expected within the next several weeks.
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