Michigan Gaming Control Board Sends Cease-and-Desist Letters to Ace23, Ace Per Head

The Michigan Gaming Control Board (MGCB) has issued two cease-and-desist letters to Ace23 and Ace Per Head, the gaming regulator announced Friday. Ace23, which is managed by Ace Per Head, is an illegally operated sportsbook and iGaming provider catering to agents and bookies.

Ace23 claims to work with Ace Gaming Network, which is only licensed for operations in Canada and Costa Rica

Additionally, Ace23 purports to be part of the Ace Gaming Network (AGN). The AGN claims to be licensed for business in Canada and Costa Rica. However, the network is not licensed in Michigan.

“The Michigan Gaming Control Board is committed to safeguarding the integrity of legal gaming in the state and protecting consumers from illicit offshore operations like Ace23,” MGCB Executive Director Henry Williams said.

“Our regulatory efforts are focused on promoting responsible gaming practices and upholding the laws that govern the industry. To that end, we ask all Michigan residents to stay informed and stay safe by reporting any suspected illegal gambling activities to the agency because we take every tip very seriously.”

The MGCB’s investigation has revealed the website enables account holders, who are considered “agents” to establish bookmaking operations. Different “skins” (designs) and webpages are used for sportsbooks and iGaming operators. Agents/bookies can accept wagers and make payouts to players on those webpages.

Michigan Gaming Control Board discovered that Ac23 charges agents, bookies $10 per active player per week for services

Ace23 handles all the organizing, setup, and administration for the agent’s/bookie’s operation. Per the MGCB’s news release, it charges them $10 per active player per week for services.

The website also offers casino-style games but does not take any wagers or make any payouts. Both bets and payouts are handled between the agent/bookie and participating gamblers.

Ace23 facilitates transactions from agents for the “per head” charges through cryptocurrencies or approved retailer gift cards. To pay with a gift card, agents are required to scratch off the hidden code on the back of the card. Agents then input it into an area on their account page to release the dollar amount to Ace23.

“We provide player support and wagering services on behalf of our agent customers,” it reads on Ace23’s website. “We do not handle deposits or payouts on behalf of any agent, nor do we hold any [wagers].”

The MGCB said Ace23 is operating in direct violation of Michigan’s Lawful Internet Gaming Act. Though, Ace23 also violated the Michigan Penal Code and the Michigan Gaming Control and Revenue Act.

Ace23 and Ace Per Head have 14 days from the receipt of the letters to immediately halt all gambling activities within Michigan. The MGCB can take legal action if the companies refuse to comply.