Michigan Gaming Control Board (MGCB) reaffirmed its commitment to combating illegal gambling activities, particularly the proliferation of casino-style electronic “skill games”. This announcement, made on July 16, 2024, is underscored by MGCB’s dedication to protecting consumers from unregulated and potentially exploitative gaming practices.

The Issue at Hand

Over the past few years, Michigan has reportedly witnessed a surge in electronic gaming machines in bars and restaurants. These machines are often promoted as “skill games” by their suppliers, who argue that they are exempt from Michigan’s gambling laws under the narrow exception for “redemption games” as defined by MCL 750.310b. However, MGCB has consistently found that these machines operate like traditional slot machines, where winning is based predominantly on chance rather than skill.

Investigations and Findings

MGCB, in collaboration with the Michigan Attorney General’s Office, conducted extensive investigations over the past five years.  Such efforts have led to significant enforcement actions:

·       29 individuals convicted of 27 felonies and 16 misdemeanors.

·       Seizure of 436 illegal gaming machines.

·       Confiscation of over $176,000 in cash and $15,415 in gift cards.

Further, the investigations revealed that many “skill games” are in fact illegal slot machines, often offering cash prizes and gift cards, misleading players about their legality and state authorization.

In all, MGCB reports the presence of these unregulated machines poses several risks, including:

·       Consumer Protection: Without regulation, players have no recourse if they are cheated or misled.

·       State Revenue Loss: Illegal gambling operations deprive the state of tax revenues that support vital public services, including the School Aid Fund.

·       Youth Exposure: Easy access to these machines in casual dining environments can desensitize minors to gambling, potentially leading to future addiction and financial issues.

Forward-Looking Commitment to Education and Compliance

MGCB is taking proactive steps to educate business owners about the legal requirements for gaming machines. Comprehensive educational materials have been distributed and made available on the MGCB website. Despite these efforts, misinformation continues to spread, fueling the illegal use of these machines.

Business owners are encouraged to contact MGCB if they have questions about the legality of gaming machines in their establishments. MGCB emphasizes that its primary goal is education and compliance, not hindering business operations.