The Michigan Gaming Control Board (MGCB) has issued a stern rebuttal to claims challenging the legitimacy of its efforts to combat illegal gambling activities in Michigan. This response comes amidst growing concerns over the proliferation of casino-style electronic gaming machines in local establishments, which are misleadingly branded as “skill games.”

Increased scrutiny on misclassified gaming activities:

In recent developments, there has been a noticeable rise in the presence of these machines across various bars and restaurants throughout Michigan. Vendors of these machines assert that they involve an element of skill, which they believe exempts them from state gambling laws under a very narrow provision known as “redemption games.” However, the MGCB has clarified that these machines do not meet the stringent criteria set forth in MCL 750.310b and are indeed subject to Michigan’s gambling prohibitions.

Henry Williams, the Executive Director of the MGCB, emphasized the board’s duty to uphold the integrity of Michigan’s gambling regulations in a press release. “It is essential to clarify that these casino-style electronic gaming machines are not exempt from Michigan’s penal code, and individuals operating or utilizing them are subject to enforcement actions by the state,” Williams stated.

The MGCB has been vigilant in its investigations, consistently finding that the operation of these machines aligns more with the characteristics of slot machines—where outcomes are predominantly based on chance rather than skill. This misclassification has led to various illegal activities, including the use of cash prizes and Visa gift cards, under false pretenses of legality or state approval.

Over the past five years, comprehensive joint investigations with the Michigan Attorney General’s Office have led to significant crackdowns:

– 29 individuals have been convicted of 27 felonies and 16 misdemeanors.

– A total of 436 illegal machines have been seized.

– Over $176,000 in cash and approximately $15,415 in gift cards have been confiscated.

These actions underscore the MGCB’s resolve to protect Michigan citizens from fraudulent gaming activities that not only exploit consumers but also deprive the state of crucial revenue streams intended for public services like education.

Protecting the public and supporting legal compliance:

The MGCB has gone further to educate business owners and the public on the legalities of gaming machines through educational materials available on their website. Despite their efforts, misinformation continues to spread, leading to an increase in the illegal use of these machines across the state.

Williams also highlighted the potential risks to minors, stressing the importance of shielding young individuals from early exposure to gambling, which could lead to addiction and financial issues later in life. “The presence of unregulated casino-style electronic gaming machines in restaurants and small businesses risks grooming minors for gambling at an early age,” he added.

The MGCB remains committed to eliminating illegal gambling while ensuring that businesses adhere to the law. They encourage any business owners in the state unsure about the legality of their gaming machines to contact them for guidance, reinforcing their approach of education first, followed by enforcement.