Israeli gaming company Papaya, known for its popular casino and poker apps, is facing a cease-and-desist order from Michigan authorities. The order, issued by the Michigan Gaming Control Board, accuses Papaya of operating without a proper license in the state.
Papaya, which operates primarily in Europe and Asia, recently entered the US market and has been offering its services to Michigan residents without obtaining the necessary regulatory approvals. The company’s presence in the state has raised concerns among local gaming officials, who fear that Papaya’s unlicensed operations could pose a threat to consumer protection and the integrity of the state’s gaming industry.
The Michigan Gaming Control Board, in its cease-and-desist order, has demanded that Papaya immediately cease all operations in the state until it obtains the required licenses and approvals. Failure to comply could result in fines and other regulatory sanctions against the company.
Papaya, for its part, has expressed surprise at the order and has promised to work with Michigan authorities to resolve the issue. In a statement, the company said, “We are committed to operating in full compliance with all applicable laws and regulations, and we will take all necessary steps to rectify this situation as soon as possible.”
The news of Papaya’s cease-and-desist order comes at a challenging time for the company, which has been facing increased scrutiny from regulators in various jurisdictions. In recent months, Papaya has been accused of operating in other US states without proper licenses, prompting concerns about its business practices and compliance with gaming laws.
The situation has also raised questions about the regulatory oversight of foreign gaming companies entering the US market. With the rise of online gaming and the proliferation of international operators, state authorities are increasingly on alert for unlicensed operators and potential threats to the integrity of their gaming industries.
As Papaya works to address the cease-and-desist order in Michigan, the company is also facing scrutiny from regulators in other states where it operates. It remains to be seen how the company will navigate these challenges and whether it will be able to continue its expansion into the US market in a compliant manner.