MGCB Defends Efforts to Combat Illegal Gambling

The Michigan Gaming Control Board (MGCB) won’t be backing down any time soon from their recent crackdown on illegal gambling operations, a new release confirms.

In the wake of a recent raid and dissolution of illegal operations in Saginaw and Flint, the MGCB reiterated the importance of protecting its citizens from these unlicensed retailers.

“Operations of these unregulated gaming machines puts citizens at risk — because they have no recourse should they be misled, cheated, or otherwise taken advantage of,” the release said. [It also] results in a loss of state revenue, depriving Michigan citizens of taxes and revenue used to support schools through the School Aid Fund and communities and local governments with essential state funding dollars.”

A notable increase in electronic gaming machines — in particular in bars and restaurants across the state — is of particular concern to the state government, with suppliers misleading players into believing these are matters of skill, the release notes. The usage of Visa gift cards, as well as misleading claims with regard to the legality of these systems, is also of concern to the MGCB.

“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,” MGCB Executive Director Henry Williams said via 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.”

“The public is being misled when told that skill and gift cards equate to the legality of a machine. What is being ignored is that the machines in question have been played and/or examined by investigators and determined to be casino-style slot machines for which winning depends on chance,” Williams added. “And by law they do not qualify as a redemption game exception to the penal code. The mere use of a gift card as a prize does not render the machine legal.”

According to the MCGB, joint investigations over the past five years have resulted in the seizure of over 400 illegal machines, as well as over $19,000 combined in cash and other assets.

The MCGB has also expressed concerns with the potential risks posed to minors, and the easy accessibility these illegal machines present.

“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 said. “Kids don’t need access or exposure to slot machines when they go out to enjoy a burger and fries or a pizza. If it’s not on the menu, it should not be available.”

Michigan remains busy

The prominence of illegal gaming in Michigan has been particularly acute over the past several years with the rise of prominence in online sports betting and gaming.

In addition to the seizure of illegal gaming machines, Michigan regulators also recently booted offshore betting operator Bovada out of the state after a cease-and-desist letter sent in May detailed violations of the state’s gaming laws.

“If people choose to ignore the law and don’t do what’s legal, we’re going to find them and hold them accountable for their actions,” Williams said at a gaming law conference in April. “In Michigan, the Michigan Gaming Control Board has made it a priority to do everything we can to protect our state’s citizens from illegal gambling market operators and our legitimate gaming industry from being tarnished by its illegal counterparts. We have a zero-tolerance policy towards illegal gaming activities.”

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