Michigan Gaming Control Board Intensifies Crackdown on Illegal Skill Games
The Michigan Gaming Control Board (MGCB) is doubling down on its efforts to eradicate unregulated gambling machines in the state, reaffirming the legitimacy of its crackdown. In a detailed statement on its website, the MGCB emphasized its commitment to protecting citizens from illegal gambling activities, particularly targeting skill-based amusement machines and redemption games that some operators claim are similar to arcade games.
“As the regulatory authority overseeing the three Detroit commercial casinos and online gaming in Michigan, the MGCB is committed to upholding the integrity of the state’s gambling regulations and ensuring a fair and responsible gaming environment for all citizens,” stated MGCB Executive Director Henry Williams. “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.”
Determining the Nature of Skill Games
The MGCB has been collaborating with law enforcement to seize illegal gambling machines from small businesses and underground gambling dens. Their investigations have revealed that these so-called skill games operate similarly to slot machines, with outcomes primarily dependent on chance rather than skill.
Stern Warning to Operators
State gaming regulators are issuing a strong warning to small businesses that continue to house these unlicensed slot machines or cleverly disguised gaming devices. The MGCB and the Michigan Attorney General’s Office have successfully prosecuted 29 individuals over the past five years, resulting in 27 felony and 16 misdemeanor convictions. These efforts have led to the confiscation of 436 gaming machines, $171K in cash, and over $15K in gift cards.
Law enforcement and MGCB officials emphasize that these nonlicensed gaming machines lack consumer safeguards and player protections, posing significant risks, especially to minors.
“This lack of oversight poses significant risks, particularly when minors can access these machines, potentially increasing the likelihood of future gambling problems among youth,” the MGCB statement continued.
Williams further noted that the presence of these machines in everyday businesses like restaurants amounts to “grooming” minors for future gambling behavior, with potentially severe consequences for their well-being, including addiction and financial issues.
Potential Penalties for Non-Compliance
Businesses that continue to house unregulated gambling machines face severe penalties. These include the loss of liquor and lottery licenses, criminal prosecution, and substantial fines. The MGCB is adamant about enforcing compliance and has asked the public to report any illegal gambling operations via email at [email protected].
Focus on Education and Compliance
The MGCB emphasizes the importance of a regulated gambling environment, focusing on education and compliance. The agency also warns consumers against using illegal offshore gaming websites. In late May, the MGCB issued a cease and desist letter to an illegal offshore iGaming platform, demanding it stop accepting players from Michigan or face legal action.
“The proliferation of online gaming platforms has led to increased scrutiny from regulatory bodies worldwide, and this action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated,” said Williams. “The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”
