Like most parts of the world, Michigan has significantly opened up to the online casino industry.
In fact, in 2024 alone, the state witnessed a record $2.44 billion in revenue, up from $1.92 billion in 2023. Surprisingly, within the last three months of 2024, the industry brought lifetime revenue to $7 billion.
But this was not all. In January 2025, the monthly revenue hit $248.2 million, a clear sign of how robust the industry has become. Thankfully, as more operators join, platforms like Zamsino are emerging to ease the process of finding a suitable gambling site.
Unfortunately, this growth also comes with another challenge: offshore casinos. These operators can actually be costly, which is why Michigan is working hard to limit their spread.
Why are offshore casinos a problem?
At first glance, offshore casinos might actually seem harmless, but they pose serious risks for both players and local governments. Since they aren’t licensed by the US regulators, they don’t have to follow US consumer protection laws. This can be risky, especially if something goes wrong, as there might be no legal recourse.
Plus, don’t forget that fraud is a prevailing concern in many sectors, including iGaming. In fact, according to a recent study, fraudulent activities increased by 64% between 2022 and 2024. As a result, mobile casino and betting platforms lost about $1.2 billion between 2022 and 2023 alone.
In another place, biometricupdate.com claims that the gambling industry loses about $1 billion to fraud problems per year. It further notes a 73% increase in fraud rates between 2022 and November 2024. Given that these numbers could actually increase, you may want to be wary about offshore gambling platforms.
At least, playing at a licensed Michigan casino guarantees that every game is audited and tested for fairness, but not so with offshore sites. There’s no guarantee the roulette wheel isn’t rigged or that the slot machine odds haven’t been manipulated. Worse still, some offshore sites often delay or even refuse to withdraw funds without warning or explanation.
For local governments, offshore operators could mean no tax revenue. And as you may know, casino tax revenue can help fund education, local governments and even tribal communities. However, governments risk losing a significant share of this money when players spend on illegal sites.
Can you imagine that, according to the American Gaming Association, Americans gambled about $337.9 billion with illegal sites, accounting for a loss of $3.9 billion in state tax revenue? Of course, Michigan is not immune to this kind of loss.
What is the state doing in response?
Considering these statistics, you don’t expect the state to sit on its hands. Recently, the Michigan Gaming Control Board (MGCB) took decisive action against 13 offshore casino sites, which were thought to be illegally targeting Michigan residents. Most of these operators are based in Curacao, the Autonomous Island of Anjouan, and Costa Rica, and have received cease-and-desist orders from the regulator.
According to Henry Williams, the board’s executive director, these websites expose the state’s residents to serious security risks. Sadly, the director confirmed that some of them engage in deceptive practices, further highlighting the reason for the decision. Part of the deceptive practices included restricting withdrawals and demanding that players meet unreasonable wagering limits before making withdrawals.
Consequently, MGCB’s move clearly signals the state’s tough stance toward these and other operators trying to bypass Michigan’s legal gambling system. Reports indicate that the board expects these operators to cease all illegal activities within 14 days of receiving the letters. Failure to comply could lead to more serious legal action.
This comes amid efforts by MGCB to create a safe and enjoyable gaming environment for the state’s residents. Surprisingly, its ‘Don’t Regret the Bet’ responsible gaming campaign won an Emmy Award towards the end of last year (2024).
What can players do?
This must mean a lot if you live in Michigan and enjoy occasional online slots. As much as the government should work hard to improve safe gambling, the greater responsibility lies with its citizens. This is why the board strongly encourages gamblers to be vigilant and only participate on authorized platforms.
To ensure a platform is licensed by the state, you may want to check the board’s website at Michigan.gov/MGCB. And in case you encounter a malicious platform, don’t hesitate to report it. You can use the regulator’s hotline at 1-888-314-2682 or email - MIGamblingTip@michigan.gov.
Conclusion
It shouldn’t actually be surprising that many offshore gambling sites are targeting Michigan. Just recently, in 2024, the Detroit Free Press released a report claiming that the state has the largest online gambling industry in the US – no wonder almost everyone is interested.
The disadvantage is that the state could lose considerable revenue to illegal operators. Plus, with the rising number of cyberattacks, illegal sites increase the likelihood of customer data being compromised. It also becomes quite challenging for players to follow up with the companies if something goes wrong.
Realizing this, Michigan has been working hard to ensure players engage in safer environments. That’s why the Michigan Gaming Control Board recently sent letters to more than 10 offshore casinos, warning them of illegal and fraudulent activities. Given the industry’s anticipated growth, the board will likely make more of these efforts as it seeks to protect the state’s residents even more.