Summary:
- PredictionStrike Inc., Sweepstakes Limited, and VGW LuckyLand, Inc. are affected.
- Letters were sent late last year, and regulators want services shut down.
- Operators are skirting the law and subject to several violations.
For months, it has been rumored that Michigan gaming officials are shutting down sweepstakes gaming sites based on gambling laws. Now, it seems the rumors are true. The Michigan Gaming Control Board has announced that cease-and-desist letters have been sent to operating companies of sweepstakes sites to shut down their operations or face consequences.
The regulators say the operators are in violation of gambling laws as they do not have licensing to offer services. The companies face several violations for their actions.
Which Companies are Affected?
Michigan regulators sent the letters to three companies, one based in the United States and two that are overseas. VGW LuckyLand, Inc., PredictionStrike Inc. and Sweepstakes Limited are listed as the brands that received letters from the Board.
Henry Willams, the Executive Director of the Michigan Gaming Control Board, said that gambling regulations are in place for a reason, and illegal operations are not welcome in the state. The Board does not want companies that are skirting the law to be able to provide services to residents in Michigan and leave them vulnerable.
The companies face several violations, including offering online gaming and sports betting without a license. This violation pertains to PredictionStrike. Stake.us, operating under Sweepstakes Limited, is facing a violation of offering unlicensed online lottery or raffle gaming. VGW, which operates LuckyLand and other sites, is charged with conducting illegal gambling where players wager with something of monetary value.
The Board claims the operators are breaking the Lawful Internet Gaming Act, which states only companies with official licensing can offer services.
Will Sweepstakes Gaming be Affected Across the US?
Will other states follow suit if Michigan successfully removes the sweepstakes gaming sites and other online providers from its borders? Most states in the US allow such sites based on sweepstakes gaming laws. The sites get away with offering services due to no monetary exchanges for gaming.
Players receive Gold or Sweeps Coins upon sign-up and can use the coins to play slots and other games. The only money exchanging hands is if players decide to purchase more Gold Coins. So far, operators have had no issues offering services.
Suppose Michigan is able to shut down these sites due to iGaming legislation. In that case, other states that offer similar services, such as Pennsylvania, New Jersey, and Michigan, may also take the same action.
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