America’s War on Offshore Casinos: Analysis
The continuing crackdown on offshore casinos in the U.S. shows how regulated states are fighting against the tide of illegal sites.
Could Michigan show the way for states to fight back?
Legal online casinos arrived in the U.S. in 2013, with New Jersey leading the way. However, since then, only a handful of states (Maine was the eighth) have introduced regulated online casino gaming.
The gaps are filled by hundreds of offshore casinos, safe from federal law, and that continue to offer Americans the chance to play slots and table games online. Offshore sites pay no U.S. tax and often offer little to no player protection.
Michigan issues dozens of cease-and-desist letters in further crackdown
- MGCB issues cease-and-desist letters to offshore casinos
- Board warns of “additional enforcement measures” on unregulated sites
- BetOnline and Bovada are among sites to geoblock MI customers
Michigan regulated online casinos in 2019, but many offshore sites continue to accept bets from players in the Great Lakes State.
The Michigan Gaming Control Board issued 12 cease-and-desist letters to unregulated casinos in December 2025, bringing the year's total to over 20.
“Illegal online gambling sites operate without oversight, putting players at risk,” said Henry Williams, the MGCB executive director. More importantly, he added that “Michigan’s secure, regulated marketplace” was undermined by unregulated sites.
The cease-and-desist letters have been successful, with some casino-sportsbooks now blocking Michigan residents from their sites. One of the largest, Bovada, stopped accepting Michigan customers in 2024.
Indiana’s gambling crackdown stretches to sweepstakes casinos
- Indiana bans sweepstakes casinos with sweeping bill
- Senate president open to idea of regulated online casinos
- Opposition from brick-and-mortar casinos could stall progress
Indiana Gov. Mike Braun signed HB 1052 into law last month, effectively banning unlicensed sweepstakes casinos in the state. In doing so, Indiana became the first state in 2026 to bring in a sweepstakes ban.
Some in the Hoosier State are keen on regulated online casinos. However, there is opposition from local interest businesses, such as Churchill Downs, which operates Terre Haute Casino Resort.
Lack of iGaming regulation could stall crackdowns on offshore gaming
Michigan has been a huge success story in first threatening, then blocking, offshore casinos. However, states without regulated online casino industries, such as Indiana, have struggled.
Testifying in Indiana last year, Fanatics Betting & Gaming’s Brandt Iden said, “To date, only states with legal, regulated iCasino have taken action to stop the online casinos that are proliferating here and across the country.
“A regulated online industry provides the state with the necessary tools to enforce its laws against illegal operators.”
Ironically, Michigan’s success against offshore casinos could accelerate other states' passage of their own laws and bring Bovada et al. back onshore.
