As part of its ongoing efforts to curb illegal gambling operations, the Michigan Gaming Control Board (MGCB) has announced it has asked OC Media Holdings LLC to cease operations in the state.
OC Media Holdings LLC, also known as One Country, generates its income through monthly membership fees. In exchange, members can enter “sweepstakes” to win prizes like lakefront cabins and VIP concert tickets.
However, after a thorough investigation, the MGCB argues that these so-called sweepstakes are classified as unlicensed online lotteries and/or raffles under Michigan law.
“The Michigan Gaming Control Board will not, and does not, tolerate activities that circumvent our laws and threaten the integrity of the highly regulated gaming industry in Michigan,” commented MGCB executive director Henry Williams.
“We are committed to upholding state law to ensure a fair and honest gaming environment for all Michigan citizens, and we will keep issuing cease-and-desist letters and taking appropriate legal actions to halt illegal gaming in the state of Michigan.”
The MGCB’s case
According to regulators, One Country’s business violates numerous state laws, including the Michigan Gaming Control and Revenue Act, Michigan Penal Code, and the Lawful Internet Gaming Act, which was signed into law in Dec. 2019 to legalize online casino gaming in Michigan.
Under the Lawful Internet Gaming Act, only casinos licensed by the MGCB are authorized to offer iGaming in the state.
The Michigan Gaming Control and Revenue Act maintains that parties who operate an unlicensed gambling operation could be subject to imprisonment, a fine up to $100,000, or both. The MGCB says it is prepared to work with the Michigan Attorney General’s Office to take appropriate legal action should One Country disregard the cease-and-desist letter.
One Country has 14 days from receipt of the letter to take measures to prevent Michigan residents from gambling on their platforms.
About One Country
Based in Fayetteville, Arkansas, One Country was founded in 2012 as a country music news publisher and continues the country music theme in its sweepstakes model.
The company offers four different membership levels with varying monthly fees, including 300 monthly entries for $15 per month, 900 entries for $25, 3,750 entries for $50, and 6,000 entries for $75. The platform also allows players to make a one-time payment or enter the raffles by purchasing merchandise.
Sweepstakes in regulator's crosshairs
The MGCB has cracked down on illegal gambling across the state in recent months, particularly “sweepstakes” sites. In May, the regulator also issued a cease-and-desist letter to Harp Media B.V., which operates offshore betting site Bovada.
Earlier this week, Louisiana became the latest state to issue such an order to Harp Media. If added to Bovada’s restricted list, Louisiana would become the 12th U.S. jurisdiction to ban the site, joining West Virginia, Nevada, New York, D.C., Connecticut, and others.
