Michigan Theater in Ann Arbor
Photo by Brad Switzer on Unsplash

The Michigan Gaming Control Board (MGCB) has issued cease-and-desist orders to 15 online casinos, continuing its battle against unlicensed gambling platforms.

In a press release, the MGCB commented: “The enforcement action underscores the agency’s continued relentless commitment to protecting players, ensuring fair play, and safeguarding personal and financial information from the risks posed by illegal gaming platforms.”

Since 2022, the MGCB has issued over 700 cease-and-desist letters, well more than any other state in the country. Not all platforms comply with the requests, however.

In May of this year, MGCB Deputy Director of Licensing and Investigations Tina Alagna stated that approximately one-third of the companies given the orders have ceased operations.

Michigan’s Regulated Online Casinos Enjoy Record-Breaking Year

As one of the seven states to allow legal online casinos, Michigan has taken a particularly hard stance against unlicensed operators. By attempting to drive out unregulated platforms, the state protects the revenue of regulated online casinos, which contribute to tax revenue.

The state saw record revenues from iGaming last year, and the growth has continued in 2025. January saw record revenue of $248.2 million, which was surpassed in March with a new record of $260.5 million. Revenue in May was also high at $251.5 million, with a slight drop in June to $240.6 million.

The state has a tiered tax system, which levies 20% on revenue of less than $4 million, with the rate gradually increasing up to a maximum of 28% on revenue over $12 million. Last year, the state collected $451.4 million in taxes, and that figure will almost certainly be surpassed this year, as the amount gambled online increases.

Unregulated Casinos Still Dominate, but Market Share Decreases

A report released this week by the American Gaming Association (AGA) noted that unregulated online casinos continue to generate more revenue than regulated platforms.

Over the past year, unregulated platforms, such as those subject to C&D orders by the MGCB, generated an estimated $18.6 billion, a 38% increase from the $13.5 billion reported in 2022. Regulated casinos, however, have been growing at a faster rate, as evidenced by the numbers posted in Michigan.

Across the seven states with legalized iGaming, $9.8 billion was generated last year, more than double the $4.6 billion generated in 2022. Michigan is the second-largest regulated market, behind only Pennsylvania, after overtaking New Jersey.

As a result, the market share of unregulated casinos has fallen to around 66% from roughly 75% in 2022. The actions taken by state regulators, such as the MGCB, continue to reduce that share. Still, until more states legalize online casinos, it is likely players across the country will continue to find ways to access offshore sites and sweepstakes that offer casino games.

AGA President and CEO Bill Miller called for more action against unlicensed gambling, stating: “It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”

Miller will undoubtedly be pleased by the recent measures taken by the MGCB and hope that other regulators will follow Michigan’s example.

Adam Roarty

Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting...