(PRESS RELEASE) -- The Michigan Gaming Control Board issued a cease-and-desist letter to OC Media Holdings LLC, operating as One Country Give, based in Fayetteville, Arkansas. It has been generating income through monthly membership sales, offering participants entries into various so-called “sweepstakes” advertised on their website and social media platforms. These so-called sweepstakes are unlicensed online lotteries and/or raffles under Michigan law.
As part of the MGCB’s commitment to safeguarding consumers and upholding the integrity of gaming regulations in Michigan, the agency has conducted a thorough 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. “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; and,
- 6,000 entries each month for $75 per month.
Participants may also make entries through a one-time payment or through the purchase of merchandise.
One Country’s practice of offering online lotteries and/or raffles directly tied to the price of its merchandise and services to paying customers without a proper gambling license violates numerous state laws, including the:
- Lawful Internet Gaming Act, which states that internet gaming may only be offered by a licensed internet gaming operator. Only casinos that are 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.
- Michigan Gaming Control and Revenue Act, which prohibits a party from conducting a gambling operation without a license issued by the MGCB. A party who operates an unlicensed gambling operation is guilty of a felony punishable by imprisonment for up to 10 years or a fine of up to $100,000, or both.
- Michigan Penal Code, which broadly prohibits any form of gambling, which generally involves the elements of consideration, prize, and chance. For example, accepting money, or anything of value, with the understanding that money, or anything of value, will be paid to any person based on the outcome of an uncertain event is prohibited.
One Country has 14 days from 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.