Michigan Gaming Control Board Targets One Country’s Sweepstakes Sites

The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist letter to OC Media Holdings LLC, the entity behind the controversial online lottery platform One Country. The MGCB’s action targets the Fayetteville, Arkansas-based company’s operations, which involve the sale of monthly lottery memberships.

These memberships provide participants with entries into different sweepstakes heavily promoted on One Country’s website and social media channels. According to the MGCB, these sweepstakes are tantamount to unlicensed online lotteries and raffles, practices that are strictly prohibited by Michigan law.

The MGCB’s investigation into One Country was prompted by a tip-off concerning the company’s business model and its accessibility to residents of Michigan. The investigation revealed that One Country has been offering what it describes as sweepstakes, but which the MGCB has identified as illegal lotteries and raffles. These findings have resulted in swift regulatory action aimed at preventing further violations and protecting Michigan consumers from participating in unauthorized gambling activities.

“The Michigan Gaming Control Board will not, and does not, tolerate activities that circumvent our laws and threaten the integrity of the highly regulated gaming industry in Michigan,” stated Henry Williams, executive director of the MGCB, in a press release. He made it clear that the MGCB is prepared to continue issuing cease-and-desist letters and taking further legal action against entities engaged in gaming operations deemed illegal within the state.

One Country runs various online lotteries and raffles simultaneously, with a membership structure offering varying levels of entry opportunities. Specifically, according to the MGCB, the company’s subscription model includes four tiers: 300 entries per month for $15; 900 entries per month for $25; 3,750 entries per month for $50; and 6,000 entries per month for $75. Additionally, participants can purchase entries through one-time payments or by buying merchandise offered by One Country.

Multiple violations

The MGCB’s letter to One Country cites several key violations of Michigan law. Central among these is the Lawful Internet Gaming Act, which stipulates that only licensed internet gaming operators may offer online gaming services. In Michigan, the only entities eligible to apply for such licenses are casinos licensed under the Michigan Gaming Control and Revenue Act (MGCRA) or federally recognized tribal casinos.

Furthermore, the MGCRA explicitly prohibits any entity from offering gambling activity without an MGCB license. The Act outlines severe penalties for violations, including the potential for felony charges punishable by up to 10 years in prison, fines of up to $100,000, or both.

The broad scope of the Michigan Penal Code also plays a critical role in this case, as it bans all forms of gambling that involve the elements of consideration, prize, and chance. The law is clear that accepting money or anything of value in exchange for the opportunity to win based on the outcome of an event based solely on chance is illegal without proper authorization.

Given the seriousness of these violations, the MGCB has provided One Country with a 14-day window to take corrective actions to prevent Michigan residents from accessing its gambling-related services. Should One Country fail to comply with the cease-and-desist order, the MGCB has indicated its readiness to collaborate with the Michigan Attorney General’s Office to pursue further legal measures. This could include seeking injunctions or other court-ordered remedies to halt One Country’s operations in the state.