Papaya Gaming Must Leave Michigan in 14 Days for Illegal Gambling
Date: 2024-10-04 Author: Leon Pierce Categories: EVENTS
Papaya Gaming, a Tel Aviv-based company, is under pressure from regulators in the United States. The Michigan Gaming Commission (MGCB) has issued a statement announcing that it has issued a cease and desist letter to the company.
Illegal Gambling Allegations
The MGCB accuses Papaya Gaming of operating illegal gambling in Michigan through a number of apps available to local residents. The commission did not specify the source of the information, but pointed to an anonymous tipster with knowledge of the alleged violations.
The apps in question include Bubble Cash, 21 Cash, Bingo Cash, and Solitaire Cash. These apps apparently allow players to spend real money and win real prizes, which violates several laws, including the Michigan Penal Code, the Gaming Revenue and Control Act, and the Fair Internet Gaming Act.
Papaya Gaming could face hefty fines of up to $100,000, as well as the possibility of up to 10 years in prison for company officials. However, the MGCB is currently focused on getting the company off the market within the 14-day period required for such warnings.
MGCB CEO Henry Williams supported the commission’s efforts and commented on the illegal gambling situation:
“The Michigan Gaming Commission believes strongly in regulating and providing a safe gaming environment. Illegal gambling will not be tolerated in Michigan, and we will take all necessary steps to protect our residents from these unlawful practices.”
Gambling and Lottery Regulation
This isn’t the first time the company has faced scrutiny in Michigan. Earlier this year, Bovada, which operates without a license in most U.S. states, was also ordered to leave the market for not having a formal gambling license.
The problem of unlicensed operators isn’t limited to Michigan, as laws and regulators across the country are becoming increasingly suspicious of lottery casino models.
This year, Papaya Gaming was also hit with a lawsuit alleging that the company uses computer opponents, or bots, to inflate its scores and undermine fairness by matching human players with programmed opponents who have an advantage. Papaya Gaming claims to host 15 million tournaments a day.
