Michiganders Warned About Black Market
The main gambling regulator in the US state of Michigan, The Michigan Gaming Control Board (MGCB), has issued a notice warning bettors of the dangers of betting on unlicensed, black market platforms, following it receiving complaints regarding the nonpayment of winnings. It also specified the potential of identity theft by these platforms.
The Michigan Gaming Control Board (MGCB) is warning against betting with unlicensed platforms, following it receiving several complaints regarding the nonpayment of winnings. ©geniuserp/Pixabay
High Risk of Identity Theft from Betting with Unlicensed Operators
Michigan’s principal gambling regulatory body, the Michigan Gaming Control Board (MGCB), has issued a warning to bettors advising them against betting through unlicensed platforms on the gambling black market, after it received numerous complaints concerning the nonpayment of winnings.
The executive director of the MGCB, Henry Williams, put out a statement urging Michigan players to exercise greater caution following the board receiving several complaints alleging difficulties in obtaining winnings and deposited refunds from certain sites that were not licensed in Michigan.
To make the situation even more serious, Williams took the opportunity to put a spotlight on the potential for customers’ personal information to be obtained by such unregulated platforms and subsequently sold for nefarious, criminal purposes — such as for example receiving medical services or even committing tax fraud:
“If you share personal information with an unregulated gambling site, there are no guarantees your information won’t be sold to or used by criminals. Identity theft is the most common complaint received by the Federal Trade Commission.”– Henry Williams, Executive Director, Michigan Gaming Control Board (MGCB)
Michigan Gaming Control Board Cannot Pursue Action Against Unlicensed Operators
Henry Williams, executive director of the Michigan Gaming Control Board, also made a point to note that the MGCB unfortunately does not have the power to pursue action against unregulated betting sites, which means that Michigan bettors have to be even more vigilant when selecting which operators to bet through:
“Unlike regulated gambling, there is no mechanism for the MGCB to handle a patron dispute with an unregulated, offshore gambling site. Our agency does not have the authority to pursue a dispute with an unregulated site.”– Henry Williams, Job Executive Director, Michigan Gaming Control Board (MGCB)
The Michigan Gaming Control Board’s press release also highlighted the fact that there were as many as 24,00 cases of identity theft that had been reported in Michigan in 2020. In October of 2021, Michigan recorded an impressive record online betting handle of $463.3 million.
Michigan Experienced Slight Decline in Gambling Revenue in May 2021
Prior to Michigan’s record online betting handle of $463.3 million in October 2021, the state’s online gaming revenue declined slightly for the second consecutive month in May 2021, bringing in $114.3 million in revenue.
The results, reported by the Michigan Gaming Control Board (MGCB), represent a decrease of 0.8% compared to April’s results, with an overwhelming majority of the month’s revenue stemming from online casino — $94.9 million to be exact.
When it comes to taxes, Michigan generated $18.1 million from online casino in the month of May 2021, as well as an additional $615,153 in online sports betting taxes. Based on adjusted gross receipts minus revenue minus bonuses, these tax calculations actually mark a 0.6% increase from April, up to $99.6 million.
Henry Williams, executive director of the MGCB, attributed the drop in Michigan’s sports betting handle during May 2021 to the state’s laws not permitting horse betting through online sportsbooks:
“The event-driven sports betting handle dropped 4.9% compared with April. While Michigan does allow wagering on horse racing’s largest events through its regulated track and advance deposit wagering, it does not permit wagering on horse racing through the online sportsbooks.”
Online Sports Betting Launched in Michigan in January 2021
After much delay and many stops and starts, Michigan finally launched its legal sports betting offerings in January 2021, following the legalization of the market all the way back in April 2020.
As of the middle of January, fifteen sportsbook operators have been offering their regulated sportsbook channels in the Great Lake State, including leading operators such as DraftKings and FanDuel.
With the long-awaited launch of online sports betting in Michigan, many casino operators also started moving their operations online, with Michigan State Senator Curtis Hertel even revealing he predicted that all of Detroit’s casinos will implement online sports betting options, including tribal casinos.
As previously mentioned, Michigan first legalized online sports betting in April 2020 — an ill-timed launch attempt in light of the ensuing coronavirus (Covid-19) outbreak canceling virtually all in-person sporting events for the months to come.
In March 2020, the state’s three physical sportsbooks were forced to shutter their doors on March 16th. Despite being open for a half-month, the Greektown Casino, the MGM Grand Detroit and the Motor City Casino managed to generate $105,548 in retail sports wagering revenue.
