MGCB Speaks Out Again On Its Crackdown Of Illegal Gambling

Written By Corey Sharp on July 16, 2024 - Last Updated on August 1, 2024
The letters

The Michigan Gaming Control Board has followed up its defense of its crackdown on illegal gaming in a PlayMichigan story with a detailed press release on the matter.

On Tuesday morning, the MGCB doubled down on its stance, sending a press release that refutes “recent assertions questioning the legitimacy of its efforts to protect citizens” to combat illegal gambling.

After all, as a regulator, the MGCB’s job is to uphold the integrity of gambling in the Great Lakes State.

Last month, the Executive Director of the Michigan Licensed Beverage Association, Scott Ellis, said that most Michigan businesses are spooked because of the “threatening manner” in which the MGCB deals with illegal gambling.

In late-June, MGCB Public Information Officer, Lisa Keith, provided several statements to PlayMichigan, defending the gambling regulator’s actions.

MGCB doubles down on illegal gambling stance

The MGCB has been called out for its threatening tone in dealing with illegal gambling in Michigan. However, it stands by its stance on skill games.

The Board has seen a rise in such games, which misleads the public of an element of skill being involved with the machines. MGCB Executive Director, Henry Williams, said in a statement:

“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.

“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.”

Keith told PlayMichigan that redemption games are legal under the the Michigan Penal Code Act 328 of 1931, which include gift cards as prizes. However, many of the games investigated by the regulator do not meet the requirements of the law.

“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 continued. “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.”

Illegal gambling is at the top of mind for the MGCB to protect citizens as well as generate as much tax revenue as possible for Michigan communities and schools.

MGCB has seized $176,000 in five years

The MGCB’s efforts in eradicating illegal gambling has resulted in the collection of 436 machines, along with $176,001.69 in cash and $15,415 in Visa, Mastercard or giftcards since 2019. The Michigan Attorney General’s Office has also charged 29 individuals with 27 felonies and 16 misdemeanors.

The MGCB detailed nine incidents of illegal gambling in its press release. The latest one included a raid of the Red Horse Bar in Saginaw. It recently settled the illegal operation located in Flint earlier this month.

In addition to skill games, the MGCB also forced Bovada to shut down earlier this month. The MGCB sent a cease-and-desist letter to the offshore sportsbook in May, threatening legal action.

Keith, as well as the press release, made clear that the MGCB wants businesses to thrive in Michigan. Should owners have any questions, they should contact the Board.

As Keith told PlayMichigan last month, Williams used the same quote, verbatim, in the press release:

“Our goal is education and compliance. Any suggestion otherwise is simply not true.”

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Corey Sharp

Corey Sharp joined Catena Media in 2022 and is the go-to expert for Michigan gambling. Born and raised in Philadelphia, PA, he previously worked for the Philadelphia Inquirer and NBC Sports Philadelphia as a sports journalist and content producer. In Corey’s role as Lead Writer for PlayMichigan, he works alongside a talented team of expert journalists and analysts to bring you the most comprehensive and accurate coverage of gambling news in Michigan. Corey’s contacts around the industry makes him a trusted source. Corey produces daily stories and features about the gambling space. Corey graduated from Holy Family University in Philadelphia with a bachelor’s degree in sports management.

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