Updated: September 11, 2025
Michigan's online casino industry has witnessed significant growth in recent years, with a record revenue of $2.44 billion in 2024, showcasing a sharp increase from $1.92 billion in 2023. The industry's expansion continued into the last quarter of 2024, accumulating a total lifetime revenue of $7 billion. This surge in revenue persisted in January 2025 with a monthly intake of $248.2 million, underscoring the industry's robust performance.
However, alongside this prosperity, Michigan faces a new challenge posed by offshore casinos. These unlicensed operators can bring various risks for both players and local governments. Without US regulatory oversight, offshore casinos operate outside the realm of US consumer protection laws, leaving players vulnerable in case of disputes or issues. Concerns over fraudulent activities in the online gambling sector have also been on the rise, with a notable 64% increase between 2022 and 2024, resulting in substantial financial losses amounting to $1.2 billion for mobile casino platforms.
The American Gaming Association revealed startling figures indicating that Americans gambled around $337.9 billion on illegal sites, leading to a loss of $3.9 billion in state tax revenue, including potential impacts on Michigan's revenue streams. To mitigate these risks, the Michigan Gaming Control Board (MGCB) has taken decisive steps against offshore operators, issuing cease-and-desist orders to 13 offshore casino sites illegally targeting Michigan residents.
The Threat of Offshore Casinos
Offshore casinos, often based in locations like Curacao, the Autonomous Island of Anjouan, and Costa Rica, present a significant threat due to their lack of adherence to US regulatory standards. These operators have been found to engage in deceptive practices, such as imposing unreasonable wagering restrictions and delaying withdrawals without prior notice. Such malpractices not only jeopardize player interests but also create security risks for Michigan's residents.
The absence of regulatory oversight on offshore platforms raises concerns about the fairness and integrity of online gambling activities. While licensed Michigan casinos undergo auditing processes to ensure game fairness, offshore sites operate without such guarantees, potentially exposing players to rigged games or manipulated odds, eroding trust in the online gambling ecosystem.
Moreover, the financial impact of offshore casinos extends beyond individual players, affecting local governments' tax revenues. Legal online gambling activities contribute significantly to funding education, local government initiatives, and tribal communities. The proliferation of illegal offshore operators diverts revenue away from the state, with potential long-term consequences for public services and community welfare.
Amid these challenges, the MGCB has positioned itself as a proactive safeguard against illicit online gambling practices, emphasizing the importance of a secure and enjoyable gaming environment for Michigan residents. The board's stringent actions against offshore operators underscore its commitment to upholding regulatory standards and protecting players from potential risks associated with unlicensed gambling platforms.
Henry Williams, the executive director of the Michigan Gaming Control Board, highlighted the imperative of curbing the deceptive practices of offshore casinos to safeguard the state's residents. The board's recent interventions are aimed at ensuring compliance with legal gambling requirements and promoting responsible gaming practices in the state.
Protecting Players and Revenue Streams
Advocating for responsible gaming, the MGCB has initiated the ‘Don't Regret the Bet' campaign, recognized with an Emmy Award in 2024. This campaign underscores the importance of empowering players to make informed choices and engage solely on authorized platforms licensed by the state of Michigan. By directing players to verify the licensing status of online casinos through the MGCB's website, the board seeks to enhance transparency and accountability in the online gambling industry.
Players are encouraged to remain vigilant and report any suspicious or malicious gambling platforms to the regulatory authorities promptly. By leveraging the MGCB's dedicated hotline and email reporting mechanisms, players can contribute to the board's efforts in combatting illegal gambling activities and ensuring a secure gaming environment for all participants.
In response to the growing prominence of offshore casinos targeting Michigan residents, the MGCB's proactive measures aim to mitigate the risks associated with illicit online gambling practices. By issuing cease-and-desist orders to non-compliant operators, the board demonstrates its commitment to enforcing regulatory standards and protecting the state's gaming industry from fraudulent and unauthorized activities.
