Michigan regulators are hoping to kick offshore operator Papaya Gaming out of the state.
The Michigan Gaming Control Board (MGCB) announced on Thursday it has sent a cease-and-desist letter to Papaya Gaming, which is based in Tel Aviv, Israel. The MGCB sent the letter after investigating the operator following an anonymous tip.
The board said that the investigation found that Papaya Gaming is operating illegal gambling by offering mobile apps for skill games including 21 Cash, Bingo Cash, Bubble Cash and Solitaire Cash within the state. Apps like these allow players to play for free but also to buy in and win real money through gameplay.
Papaya Gaming is not a licensed internet gaming operator in the state of Michigan.
The MGCB said that by offering these apps, Papaya Gaming is in violation of the following Michigan gaming laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act and the Michigan Penal Code. The penal code broadly prohibits any form of unauthorized gambling involving consideration, prize and chance.
Papaya Gaming has 14 days from receipt of the letter to take steps to prevent Michigan residents from gambling on their apps or the MGCB will take legal action.
“The Michigan Gaming Control Board firmly believes in a regulated and safe gaming environment,” said MGCB Executive Director Henry Williams. “Illegal gambling is not tolerated in Michigan, and we will take all necessary actions to protect our residents from such unlawful practices.”
States move to stifle skill games
The position skill games, both mobile apps and so-called “skill machines,” hold in a regulated gaming market has been a topic of conversation in recent months.
In July, the MGCB responded to gray machines manufacturer Pace-O-Matic’s presence at brick-and-mortar properties across the Wolverine State by insisting that no matter what the company says, the machines are illegal. The Michigan regulator determined that gray machines fail to adhere to state gaming regulations as they operate in a manner resembling slot machines that determine winnings based on circumstances outside of a player’s control.
The MGCB said it has taken its stance on casino-style game machines to protect players from offerings that don’t adhere to consumer safeguards that prevent unfair practices, as well as to avoid a loss of potential state revenue.
Michigan not afraid to come down hard
The MGCB has proven in the recent past that it is willing to take strict sanctions against operators it believes are working outside the confines of the law.
It is one of several states to have pushed Bovada into shutting down operations within its borders. At the end of May, it sent a similar cease-and-desist letter to the operator, which ultimately stopped offering its products and services in the state in June.
And in August, the Michigan regulator announced it had sent a cease-and-desist letter to OC Media Holdings LLC, operating as One Country Give (One Country) out of Fayetteville, AR. The board said One Country had been selling monthly memberships that offer entry into various sweepstakes games, which the board stressed are unlicensed under Michigan law.
