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Michigan Gaming Control Board Issues Cease and Desist to Papaya Gaming



The Michigan Gaming Control Board (MGCB) today announced it has sent a cease-and-desist letter to Papaya Gaming for what it claims is illegal gambling activities in the state.

The MGCB issued the letter to Papaya Gaming, based in Tel Aviv, Israel, after an investigation into the company. The agency received an anonymous tip on the company’s services, which led to the evaluation.

The control board has issued 14 days from receipt of the notice for Papaya Gaming to prevent state residents from playing their mobile app games, according to the MGCB press release.

Is the Service Illegal?

According to the  Michigan Gaming Control Board’s investigation, Papaya Gaming “is operating illegal gambling” by offering mobile apps to players to buy-in and win real money through gameplay. These games include 21 Cash, Bingo Cash, Bubble Cash, and Solitaire Cash.

“The Michigan Gaming Control Board firmly believes in a regulated and safe gaming environment,” MGCB Executive Director Henry Williams said in a press release. “Illegal gambling is not tolerated in Michigan, and we will take all necessary actions to protect our residents from such unlawful practices.”

The MGCB believes Papaya Gaming is offering unlicensed online gaming services in the state and is violation of the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

However, are the mobile cash games actually illegal? A Papaya Gaming spokesperson reached out to Honey Monkey Pineapple and said the company complies with all necessary state laws and regulations and looks forward to discussing the issue with the MGCB.

“We are reviewing the letter. Papaya complies with all applicable laws and regulations in the jurisdictions in which it operates. We look forward to addressing the matter in due course with the Michigan Gaming Control Board. We are confident that Papaya will continue to present lawfully in Michigan,” the spokesperson said.

Real-Money Skill Games At Heart of Issue

The games being offered by Papaya are basically classified as real-money skill games, which allow users to compete against one another in real-money games of skill. FanDuel offers a similar service under the name FanDuel Faceoff, which is currently live in 30 states across the country.

FanDuel Faceoff, however, is not available in Michigan.

Skillz, however, a gaming company that offers real cash competitions to all players over the age of 18 for a variety of games, is currently live and hosting cash matches in Michigan.

Skills only prohibits cash games in Arkansas, Connecticut, Delaware, Louisiana and South Dakota. Additionally, cash matches are currently not available in Maine or Indiana for card games, and cash matches are not available for dominoes in New Jersey.

No restrictions are currently set on any games in Michigan. Users can also opt to play free games through the app as well.


Robert

Robert Linnehan

Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.



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