The Michigan Gaming Control Board (MCGB) is cracking down on black market offshore sportsbook operators originating out of Costa Rica. Last week, the MCGB sent cease and desist letters to Ace23 and Ace Per Head telling them to cease operations in the state. The letters are part of a larger effort by the MCGB to crack down on unlicensed operators.
Both companies targeted by the MCGB operate out of Costa Rica and are throwbacks to the pre-legalization era of American sports betting. The sites are both part of the Ace Gaming Network, which is also based in Costa Rica.
Ace23 and Ace Per Head are pay-per-head sites that essentially operate as skins. Individual bookmakers pay the sites $10 per player per week and Ace provides all the back end operations. Under this model, payments are accepted, and payouts given, through the site for sports betting. (Casino games are also available but don’t offer payment/payout options for the local operator.) Players can pay operators using Ace via cryptocurrencies and gift cards.
MGCB Executive Director Henry Williams spoke about the importance of taking on unregulated bookies in a recent press release saying, “The Michigan Gaming Control Board is committed to safeguarding the integrity of legal gaming in the state and protecting consumers from illicit offshore operations like Ace23. Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry. To that end, we ask all Michigan residents to stay informed and stay safe by reporting any suspected illegal gambling activities to the agency because we take every tip very seriously.”
The Ace companies have 14 days to comply with the MGCB’s request, otherwise the state will take further legal action.