Michigan Gaming Control Board Doubles Down on Skill Games Opposition

Posted on: July 17, 2024, 10:39h. 

Last updated on: July 17, 2024, 10:50h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The Michigan Gaming Control Board (MGCB) is coming out arms swinging against anyone who thinks the ongoing crackdown on unregulated gambling machines in the state is unwarranted.

Michigan Gaming Control skill games illegal gambling
A row of so-called “skill games” are seen inside a restaurant and bar in Michigan. The Michigan Gaming Control Board continues to crack down on the unregulated gambling machines. (Image: AP)

In a lengthy statement posted to its website, the MGCB said it “refutes” questions about the “legitimacy of its efforts to protect citizens by combatting illegal gambling.” The MGCB continues to work with law enforcement to seize gambling machines from small businesses and underground gambling dens that have tried to circumvent Michigan’s gaming code on claims that they’re skill-based amusements and redemption games similar to arcades.

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,” said 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.”

The MGCB says its investigations have determined that grey gaming machines labeled skill entertainment by their manufacturers have established that their operations are nearly identical to a slot machine. The state agency contends that winning a skill game depends primarily upon chance and circumstances beyond the control of the player.

Not Mincing Words

State gaming regulators warn small businesses that continue to house unlicensed slot machines or games cleverly designed to circumvent Michigan’s gaming laws that they risk prosecution.

Over the past five years, the MGCB and Michigan Attorney General’s Office have successfully prosecuted 29 individuals who were convicted of 27 felonies and 16 misdemeanors. Those investigations resulted in the seizure of 436 gaming machines, $171K in cash, and over $15K in gift cards.

Law enforcement and MGCB gaming officials stress that skill games and other nonlicensed gaming machines provide no consumer safeguards or player protections.

“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 added the presence of casino-style electronic gaming machines in restaurants and other small businesses amounts to “grooming” minors to become future gamblers.

This can have damaging consequences on their future well-being, potentially desensitizing them to the negative impacts of gambling, leading to addiction and financial problems later in life,” Williams opined. “Kids don’t need access or exposure to slot machines when they go out to enjoy a burger and fries or a pizza.”

The MGCB says host businesses that knowingly house unregulated gambling machines face various penalties, including the loss of their liquor and lottery licenses, criminal prosecution, and monetary fines.

Education and Compliance 

The MGCB continues to emphasize the importance of gambling in a regulated environment. The agency says its goal is “education and compliance,” and asks anyone with information regarding illegal gambling operations to notify the board at MIGamblingTip@michigan.gov.

The MGCB is also warning consumers to avoid illegal offshore gaming websites. In late May, the state gaming regulator issued a cease and desist letter to an illegal offshore iGaming platform to stop accepting players from Michigan or face legal consequences.

“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.”