Michigan Gaming Control Board Reports 64.1 Percent Compliance in Cease-and-Desist Actions Against Illegal Operators
The MGCB issued cease-and-desist letters to 259 illegal sites since mid-2024, securing 166 compliances for a 64.1% rate. Michigan leads regulated states in channelization at 75% versus a 62% average, per Blask. Enforcement expanded to prediction markets including KalshiEX, Robinhood, Coinbase, and Polymarket.
SCCG Take — Michigan shows that targeted cease-and-desist actions plus legal market breadth effectively channelizes activity. Other regulators can adopt this to reduce illegal exposure and support licensed operators.
Henry Williams, executive director of the Michigan Gaming Control Board, described the agency's cease-and-desist letters as a national model for protecting players from illegal gambling operators. The MGCB has sent letters to 259 illegal online gambling sites since mid-2024. Of those, 166 complied for a 64.1 percent compliance rate, improved from roughly 50 percent reported at the Global Gaming Expo in October 2025.
The campaign began with an order to offshore sportsbook Bovada in May 2024. Bovada left Michigan within 14 days. Subsequent actions included a 45-operator sweep in April 2026 and orders to more than 30 offshore operators in October 2026. The agency also targeted sweepstakes casinos in 2023 and expanded to unlicensed prediction markets.
Enforcement Actions and Key Milestones
Michigan acted against platforms including KalshiEX, which faced a temporary restraining order in June 2026. Robinhood agreed to stop in September 2026. Coinbase and Polymarket each agreed in October 2026. Williams stated that illegal gambling operators target Michigan residents while offering none of the protections our laws require. He credited the full team and partners at the Michigan Department of Attorney General. Williams added that Michigan has become a model for other states and will keep at it until illegal operators understand that Michigan is off-limits.
Kurt Steinkamp, MGCB chief of staff, stated that illegal operators take money from Michigan residents without offering any of the protections that come with a license. As reported by CDC Gaming, these steps have produced measurable results in player behavior.
Market Results and Implications for Regulators
GeoComply data from March 2023 to March 2025 recorded a sharp drop in searches for and traffic to offshore brands that received letters. A March 2026 study by Blask ranked Michigan first for channelization among fully regulated states. About 75 percent of activity goes through legal operators, above the roughly 62 percent average.
The combination of broad legal gaming access and enforcement against illegal competitors produced this outcome. Where the Risk Lies is in whether other states can sustain similar pressure without added resources. Regulators elsewhere now have a documented approach that shifts activity to licensed channels and limits unlicensed revenue leakage.
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