Michigan’s lawmakers are now tackling crypto head-on, introducing a four‑bill package on May 21 to shape how digital assets operate in the state. The most eye-catching measure, House Bill 4510, would allow Michigan’s pension funds to invest in big-name cryptocurrencies, with Bitcoin leading the pack, through regulated exchange‑traded products.
The legislative activity comes as state regulators simultaneously ramp up enforcement against unlicensed online casinos. With the Michigan Gaming Control Board issuing multiple cease-and-desist orders in recent weeks, residents are being warned to avoid offshore platforms and stick to approved operators.
The most notable bill, HB 4510, would allow state pension funds to invest in cryptocurrency through regulated financial products, such as exchange-traded funds that hold Bitcoin. Supporters say it could help diversify Michigan’s public retirement investments while also aligning with growing national interest in digital assets. Meanwhile, HB 4512 and HB 4513 would incentivize crypto mining companies to use capped or abandoned well sites by offering tax breaks, provided they meet environmental remediation standards.
But as the legislature moves to embrace the crypto economy, state regulators are tightening oversight on the digital gambling front. The MGCB announced cease-and-desist orders this month targeting six offshore operators, including LuckyLand Slots and High 5 Casino, citing violations of the Lawful Internet Gaming Act and related state laws. In April, the agency had issued similar warnings to 11 other unlicensed platforms.
“Illegal gambling operations expose Michigan residents to unnecessary risk,” said MGCB Executive Director Henry Williams in a statement. “Without regulation, players have no guarantees when it comes to payouts, responsible gambling tools, or even basic customer service.”
Currently, Michigan’s regulated online casinos are not permitted to accept direct cryptocurrency payments; however, industry insiders suggest that this could change. As the state updates its gaming framework, discussions have begun regarding the integration of cryptocurrency as a payment method on licensed platforms. Some operators are already preparing their infrastructure to accept digital currencies, pending approval from the MGCB.
Michigan reported $234.8 million in online casino revenue for May, a slight dip from April’s numbers. Officials believe legalizing crypto transactions could boost engagement, especially among younger players who are more likely to hold Bitcoin or Ethereum. They caution, however, that consumer protections must remain the priority.
In a related development, Rush Street Interactive was approved on June 10 to offer multi-state poker under the Multi-State Internet Gaming Agreement. The move connects Michigan players with those in Pennsylvania, West Virginia, and Delaware, further expanding the state’s digital gaming footprint.
The convergence of crypto legislation and online casino enforcement signals a decisive shift in how Michigan plans to manage its digital future, balancing innovation with accountability in one of the Midwest’s most closely watched markets.