The Michigan Gaming Control Board issued a statement Tuesday refuting assertions questioning the legitimacy of its efforts to protect citizens by combating illegal gambling within the state. The MGCB said its authority was questioned regarding the increased number of casino-style electronic gaming machines in the state that self-identify as skill 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,” said MGCB Executive Director Henry Williams in a statement. “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.”

In a release, the MGCB noted that there has been a notable increase in the presence of electronic gaming machines in bars and restaurants across Michigan. According to the MGCB, the suppliers of these machines contend that the games include an element of skill and are, therefore, exempt from Michigan’s gambling prohibitions. They specifically claim that the games qualify as “redemption games” under the Michigan Penal Code, specifically MCL 750.310b, which allows a limited and very narrow exception to Michigan’s gambling prohibitions.

Ongoing MGCB investigations have consistently established that the operation of these games does not comply with the strict requirements of MCL 750.310b because they operate in a manner identical to a slot machine—winning depends primarily upon fortuitous or accidental circumstances beyond the player’s control.

Patterns from observing the use of casino-style electronic gaming machines include the use of cash as prizes, issuance of Visa gift cards, and false claims of legality and/or state authorization. The MGCB stated that operation of unregulated gaming machines puts citizens at risk because they have no recourse should they be misled, cheated, or otherwise taken advantage of, and 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.

Comprehensive joint investigations conducted by the MGCB and the Michigan Attorney General’s Office in the past five years have resulted in 29 individuals being convicted of 27 felonies and 16 misdemeanors.

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