Michigan Orders Sweeps Casino Golden Hearts To Shut Down
The list of gaming-related operators grappling with heightened scrutiny over the legality of their platforms continues to expand.
Michigan Attorney General Dana Nessel announced on Tuesday that she has compelled Golden Hearts Gaming, a charity-focused sweepstakes casino, to cease operations within state boundaries.
In collaboration with the Michigan Gaming Control Board, Nessel’s office initiated an investigation into the Massachusetts-based company two years ago.
In 2022, the office issued a cease-and-desist order to Golden Hearts. At the time, the company allegedly disregarded the order.
Golden Hearts Gaming’s website also claims accessibility to users at least 18 years old in all US states. This fact, however, may vary according to state-specific age requirements implemented by state authorities.
Golden Hearts blends elements of sweepstakes casinos and charitable gaming to create its product. Users can donate to various 501(c)(3) charitable organizations and, in return, receive sweepstakes coins for playing online casino games.
If users win, they can convert a secondary form of currency, also called sweepstakes coins, into real US dollars. Curiously, other sweepstakes casinos like LuckyLand Casino and Chumba Casino are considered legal in Michigan.
Nessel emphasized that unlicensed gaming deprives schools and the government of vital funds and leaves consumers vulnerable.
The Attorney General also pointed out that when companies such as Golden Hearts try to bypass Michigan’s gaming regulations, they convey a misleading impression that their games are lawful and secure for consumers.
Nessel’s office is dedicated to upholding stringent enforcement of gaming laws and holding violators accountable.
The Attorney General’s office has informed Golden Hearts that it is operating illegally as an unlicensed casino within the state. Michigan is among the few states that have legalized and regulated real-money online casinos.
Nessel’s team has issued a legal threat against the company under the Michigan Consumer Protection Act unless it withdraws from the state. Golden Hearts Gaming has agreed to this demand and signed an Assurance of Discontinuance, filed with the state on September 1.
Sweepstakes casinos and sportsbooks form a burgeoning category, but, as highlighted by ventures like Fliff and Golden Hearts Gaming, the legal perception of these entities can vary significantly from one state to another, posing risks to their operations.
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