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Compliance Updates

MGCB Announces Successful Destruction of Illegal Gaming Machines

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Michigan Gaming Control Board Executive Director Henry Williams has announced that numerous unlicensed illegal gaming machines were recently destroyed at the City Recycling Inc. junkyard located at 1943 Mack Avenue in Detroit.

The machines had been seized by the Attorney General during various MGCB investigations into alleged illegal gambling activity. To ensure that the machines cannot be reused or sold, they were crushed using heavy machinery to prevent any salvageable parts from being used elsewhere.

“Illegal gaming continues to pose a threat to Michigan citizens and their communities, as it often leads to an increase in organized criminal activity, financial exploitation, and other related social issues. Unregulated gaming machines also result in a loss of state revenue. Operators running illegal gaming establishments are not reporting earnings or paying taxes — they are essentially robbing Michigan citizens of taxes and revenue used to support our schools through the School Aid Fund and our communities and local governments with essential state funding dollars,” Williams said.

Illegal gaming refers to any form of gambling or betting activity — which involves the elements of consideration, prize, and chance — that is conducted outside the boundaries of the law. It is a widespread problem across the US and not unique to Michigan. According to the American Gaming Association’s report, Sizing the Illegal and Unregulated Gaming Markets in the US, unregulated gaming machines, including so-called “skill machines,” continue to proliferate, with an estimated 580,651 unregulated machines in the US. With 870,000 regulated machines in casinos across the country, that means 40% of all gaming machines are unlicensed.

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“The machines destroyed by the MGCB are the tools of criminals, cheating their neighbors of their hard-earned money as well as the state out of gaming revenues that support our schools. Illegal gaming operations are a danger to their communities, typically becoming local hotspots for other crimes and violence. We will continue to coordinate with the Michigan Gaming Control Board to ensure our state’s gambling laws are strictly enforced,” Michigan Attorney General Dana Nessel said.

“The destruction of these machines sends a clear message that the Michigan Gaming Control Board is not playing games when it comes to upholding the highest standards of gaming regulation and enforcement. The MGCB will continue to ensure that unauthorized machines are not left to chance to be repurposed and used again by those who choose to break the law,” Williams added.

Michigan law prohibits accepting money or anything of value with the understanding that money, or something of value, will be paid to any person contingent upon the outcome of an uncertain event. Unlicensed casinos, unauthorized online gambling platforms, underground sports-betting operations, or any other form of wagering that is not regulated by the MGCB are all considered forms of illegal gaming.

As part of its work to halt illegal gaming, the MGCB and the Liquor Control Commission began a joint effort in 2022 to educate the public and business owners about illegal use of gambling machines. As a result of MGCB investigations from January 2015 through July 2023, a total of 1195 illegal machines and $470,401.98 have been seized. Additionally, since November 2022, 48 locations have received cease-and-desist letters involving 105 illegal machines.

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Campaign for Fairer Gambling

Crime Still Dominates U.S. Online Gambling – Legalization Increases Total Losses by 261%, Warns CFG

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The Campaign for Fairer Gambling (CFG) releases a supplement to its USA National Online Gambling Report 2024 which exposed that illegal online gambling takes 74% of total gross gambling revenue (GGR) in America. Commissioned by CFG and produced by online market intelligence platform, Yield Sec, the supplement analyzes all 50 states according to their regulatory status and shows that state legalization of online gambling – without the reduction and removal of illegal online gambling – increases total losses for American consumers by up to 261%.

The supplement groups US states into one of three regulatory realities:

• States with no legal online gambling (e.g. California, Texas)

• States with one form of legal online gambling – sports betting (e.g. New York, Florida)

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• States with all forms of legal online gambling – sports betting and casino (e.g. Michigan, New Jersey).

The CFG State Supplement #1 demonstrates the effect of GGR per capita (the total marketplace value for legal and illegal online gambling divided by population) as a percentage of average income 2024 to further illustrate the burden across American consumers:

Total online GGR (Legal + Illegal) per capita as a percentage of income:

– USA National: GGR per capita is 0.62% of average income

– States with no legal online sports betting or casino (e.g. California, Texas): GGR per capita is 0.31% of average income

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– States with legal online sports betting only (e.g. New York, Florida): GGR per capita is 0.77% of average income

– States with both legal online sports betting and casino (e.g. Michigan, New Jersey): GGR per capita is 1.12% of average income.

The supplement data makes clear that legalization of online gambling, without enforcement against illegal online gambling, increases the total loss and harm. When states legalize online sports betting only, GGR per capita as a percentage of income increases by 148% (from 0.31% to 0.77%). When both online sports betting and casino are legalized, it jumps by 261% (from 0.31% to 1.12%). If legalization truly replaced illegal gambling, the dominance of illegal gambling would diminish – but, the reality is that this is not a zero-sum game.

“Ohio is the alarm bell America needs to hear. Just one year after legalizing online sports betting in 2023, losses for Ohioans had already reached 1.33% of average income per capita to online gambling – the heaviest burden in the country, and more than twice the national average. Across the US, we’re not seeing illegal gambling being replaced, we’re simply seeing total consumer losses grow. In states with full legalization, losses are now 261% higher than where there’s no legal online gambling at all. This isn’t progress, it’s escalation,” states Derek Webb, Founder of CFG.

Ismail Vali, founder and CEO of Yield Sec, added: “Yield Sec surveillance shows that the legal industry is being undermined at every turn by criminal competitors who offer greater value, bigger bonuses, and lower barriers, since they pay no tax, no licensing and exploit all forms of regulation in the absence of sincere monitoring, policing and enforcement against them.

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“It is a vicious cycle: failing to deal with crime causes loss from theft. Across the country, legalization without enforcement against illegal operators, only gives criminals another edge. The outcome is predictable: legal revenue collapses, tax income shrinks, and criminals walk away with hundreds of millions. If states want to make the money they should, enforcement against crime must come first and always – to reduce and remove illegal gambling’s appeal and availability.”

The post Crime Still Dominates U.S. Online Gambling – Legalization Increases Total Losses by 261%, Warns CFG appeared first on Gaming and Gambling Industry in the Americas.

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Compliance Updates

DraftKings to Introduce Transaction Fee in Illinois

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In response to the recent and prior sports wagering tax increases passed by the Illinois state legislature on all mobile and online sports wagers placed with licensed operators, DraftKings Inc. announced that it will implement a 50-cent transaction fee on all mobile and online bets placed in Illinois through DraftKings Sportsbook, effective September 1, 2025.

“Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources. We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer,” said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings.

The post DraftKings to Introduce Transaction Fee in Illinois appeared first on European Gaming Industry News.

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Africa

Uganda: National Lotteries and Gaming Regulatory Board and Uganda Police- Rwizi Region Deepen Ties in Enforcing the Gaming Law

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The National Lotteries and Gaming Regulatory Board (NLGRB) recently held a high-level stakeholder engagement with the Uganda Police Force Officials in Rwizi Region. The engagement, hosted at Lake View Hotel in Mbarara on May 27, 2025, brought together District Police Commanders (DPCs), Officers in Charge of Criminal Investigations (OCIDs), local leaders, the media and other technical stakeholders from across the region.

The engagement focused on aligning enforcement strategies, enhancing compliance and deepening the understanding of Uganda’s gaming laws under the Lotteries and Gaming Act, Cap 334. In his opening remarks, NLGRB CEO Mr. Denis Mudene emphasized the strategic collaboration between the Board and the Uganda Police Force in enforcing gaming law to protect citizens, end underage gaming and maintain public order.

“Gaming is not a money-making venture. It is a leisure activity or entertainment, and we encourage only those of legal age to participate responsibly,” Mr. Mudene said.

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Mr. Mudene raised concerns over the growing trend of children using parents’ phones to gamble online. He warned parents against registering SIM cards under their names and passing them on to minors, as this facilitates undetected underage gambling.

“93% of gambling happens online, mostly by corporates. However, when a phone registered in a parent’s name is used by a 15-year-old, they pass all verification checks,” he explained, urging responsible digital parenting.

In response, the Mbarara City Mayor, Robert Mugabe Kakyebezi, commended the Board’s efforts in bringing regulatory oversight closer to communities. He raised alarm over the prevalence of unlicensed betting operations and children misusing school fees or resorting to theft to fund gambling.

“As you enforce the law against illegal operators as well as those with minors in their betting shops, remind them of what the law says and apprehend them. This sets an example to those who think they can break the law and get away with it.”

The Deputy Regional Police Commander Rwizi Region, Senior Superintendent of Police Bosco Bakashaba, reaffirmed the Uganda Police Force’s commitment to upholding the law in partnership with the NLGRB.

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“We shall offer total support to reduce offenses and illegal operations. Gaming houses that admit underage individuals or operate without licenses, especially in villages, will face legal consequences,” SSP Bakashaba asserted.

He pointed out that crime intelligence and informants are key tools in detecting and shutting down illegal slot machines and unauthorised betting centres.

“Gaming is like a razorblade, used correctly, it’s useful. Used wrongly, it causes harm,” he concluded.

The post Uganda: National Lotteries and Gaming Regulatory Board and Uganda Police- Rwizi Region Deepen Ties in Enforcing the Gaming Law appeared first on European Gaming Industry News.

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