The Michigan Gaming Control Board Tuesday issued a cease-and-desist letter to OC Media Holdings, operating as One Country Give, based in Fayetteville, Arkansas. One Country Give has generated income through monthly membership sales, offering participants entries into various so-called sweepstakes advertised on their website and social-media platforms.
These sweepstakes are unlicensed online lotteries and or raffles under Michigan law.
MGCB conducted an investigation into One Country’s activities after it received a tip about the company’s operations and business model being accessible to Michigan citizens.
“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,” MGCB Executive Director Henry Williams said in a statement. “We are committed to upholding state law to ensure a fair and honest gaming environment for all Michigan citizens, and we will keep issuing cease-and-desist letters and taking appropriate legal actions to halt illegal gaming in the state of Michigan.”
One Country, which operates multiple online lotteries and/or raffles concurrently, offers customers four different membership levels with varying monthly fees:
- 300 entries each month for $15 per month
- 900 entries each month for $25 per month
- 3,750 entries each month for $50 per month
- 6,000 entries each month for $75 per month
Participants can also make entries via a one-time payment or the purchase of merchandise.
One Country’s practice of offering online lotteries and/or raffles is tied to the price of its merchandise and services to paying customers without a proper gambling license. This violates numerous state laws, including the Lawful Internet Gaming Act, which states that internet gaming may be offered only by a licensed internet gaming operator. Only casinos currently licensed under the Michigan Gaming Control and Revenue Act and federally authorized tribal casinos within Michigan can apply for an internet-gaming operator license.
The MCGB stated that One Country also violates the Michigan Gaming Control and Revenue Act, which prohibits a party from conducting a gambling operation without a license issued by the MGCB. A party that operates an unlicensed gambling operation is guilty of a felony punishable by imprisonment for up to 10 years, a fine of up to $100,000, or both.
There is also a violation of the Michigan Penal Code, according to the MGCB, which broadly prohibits any form of gambling that generally involves the elements of consideration, prize, and chance.
One Country has 14 days from its receipt of the letter to take steps to prevent Michigan residents from gambling on their websites and social-media platforms. The MGCB is prepared to work with the Michigan Attorney General’s Office to take appropriate legal actions to address the violations identified should One Country choose to disregard the cease-and-desist letter.
Rege Behe is lead contributor to CDC Gaming. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.
