Illegitimate Gambling Operators in Michigan Admit Guilt in Storefront Casino Scandal
In a significant move against unlawful gambling activities, two men, a 52-year-old Grand Blanc resident (L.A.K.) and a 55-year-old Saginaw resident (R.J.), have pleaded guilty to conducting an illegal gambling operation without a license in Flint, Michigan.
The guilty pleas were entered in the 7th Judicial Circuit Court in Flint, marking a clear message that operating a gambling operation without a license will not be tolerated. The specific details of the plea agreement or the consequences for the two men were not disclosed in the news article.
The illegal gambling venue, Cellular Bank, was discovered following an investigation conducted by the Michigan Gaming Control Board (MGCB) and the Michigan Department of Attorney General. The business was operated at a storefront casino located on 4622 North Saginaw Street in Flint.
At Cellular Bank, authorities found 11 slot machines, 13 computers with slot-like games, and a system that allowed visitors to gamble online from their homes or other offsite locations using a card with a PIN. Such crime is punishable by up to 10 years in prison, a fine of no more than $100,000, or in some cases, both.
Conducting a gambling operation without the required license is recognized as a crime under the Michigan Gaming Control and Revenue Act, 432.218. The MGCB enforces Michigan’s gaming laws strictly, focusing on protecting players and supporting the state's regulated gaming industry. Only casinos licensed by Michigan or approved tribal casinos are authorized to operate online gambling.
The guilty plea sends a strong message that the MGCB is committed to maintaining the integrity of the gambling sector across the state. Henry Williams, the executive director of the MGCB, spoke about the Board's ongoing efforts in this regard.
Mayor Sheldon Neeley of Flint also praised the efforts of the MGCB and other law enforcement agencies, emphasizing the importance of combatting illegal gambling. He stated that the recent guilty pleas should make it clear that unlawful gambling operations will face strict consequences.
The sentencing for L.A.K. is scheduled for November 25, while R.J.'s sentencing is scheduled for December 2. The charges against the two men, which initially included three felony counts each, were dismissed due to their guilty plea.
This is not the first time the MGCB has taken action against unlicensed gambling operators. In July 2021, the MGCB sent letters to 19 unlicensed online gambling operators, accusing them of violating state gaming laws by offering casino games and sports betting without proper licensing. The cease-and-desist letters represent the largest enforcement action by the MGCB to date and are intended to stop illegal gambling activities promptly.
The MGCB's regulatory authority corroborates that operating without a license can lead to actions such as forced shutdowns, legal injunctions, and potential civil or criminal penalties under Michigan gaming laws. Thus, the primary consequence highlighted by the Cellular Bank example is regulatory enforcement stopping unlicensed online gambling operations via cease-and-desist orders, underpinning Michigan’s commitment to strictly control its legal gambling market and protect consumers.
- The guilty pleas from L.A.K. and R.J. in the 7th Judicial Circuit Court demonstrate that operating an unlicensed casino-and-gambling business, such as Cellular Bank with slot machines and online gambling services, falls under the purview of crime-and-justice laws in Michigan.
- In light of the Cellular Bank case and the ongoing efforts by the Michigan Gaming Control Board (MGCB), it is evident that general-news outlets should anticipate continued reporting on the MGCB's commitment to enforcing casino-games regulations and the consequences for those who run unlicensed gambling operations, thereby maintaining the integrity of the gambling sector across the state.
