The Michigan Gaming Control Board is well within its right to crack down on illegal gambling. However, some bar owners in Michigan are not happy with the MGCB’s methods. An executive of the Michigan Licensed Beverage Association accused the MGCB of sending “threatening” letters to stop illegal gambling.
“The MGCB refutes the recent claims that its efforts to combat illegal gambling are invalid,” MGCB Public Information Officer Lisa Keith told PlayMichigan in an email on Friday morning.
The MGCB uncovered illegal gambling at the Red Horse Bar in Saginaw earlier this month as authorities charged the owners with four felonies, each.
The MGCB has made an effort to, “protect Michiganders’ interests and well-being by investigating and stopping illegal gambling,” Keith said.
There are certain skill games not involving cash that are legal in Michigan, according to the MGCB. However, Keith said the regulator stands by any investigations made into bar owners, especially when given fair warning to comply.
MGCB stands by illegal gambling stance
The MGCB sent cease-and-desist letters to 64 businesses last year, which led to the removal of 167 illicit gambling machines.
Executive director of the Michigan Licensed Beverage Association, Scott Ellis, spoke for many bar owners in the state.
“They are actually terrified because of these letters going out in a threatening manner,” Ellis told ABC12 News.
Keith told PlayMichigan the MGCB stands by its handling of illegal gambling, especially in bars and restaurants.
“In cases where investigations into casino-style slot machines have taken place at bars and restaurants, each of those business owner(s) were served adequate, advance warning that they were not in compliance with the law by way of cease-and-desist letters that provided them an opportunity to comply before enforcement action was taken,” she said.
Ultimately, the MGCB is a regulatory body is supposed to uphold the integrity of gambling, which protects players in the state.
“Gaming machines used illegally lack the necessary consumer safeguards that licensed and regulated establishments provide, leaving the individuals who use them susceptible to unfair practices,” Keith said.
Redemption games are legal in Michigan
Ellis mentioned to ABC12 News that the redemption games are legal in Michigan. And they are, as Keith pointed out, as well, under the the Michigan Penal Code Act 328 of 1931. The games are lawful with many stipulations, including the involvement of skill and prizes that do not include cash. Here are some others:
-
The gift card is usable only at a retailer or an affiliated group of retailers.
-
The gift card is issued in a specified amount.
-
The gift card is redeemable only for goods and services available from the retailer or retailers and not for cash.
-
Information on the gift card may not be altered with the use of a personal identification number.
However, the MGCB has seen electronic gambling machines act exactly as casino slot machines. Many owners have been pawning the games off as skill or redemption games. The MGCB has seen them expand across the state over the years.
“The public is being misled when told that skill and gift cards equate to the legality of a machine,” Keith said. “What is being ignored is that the machines in question have been played and/or examined and determined to be casino-style slot machines for which winning depends on chance. 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.”
MGCB wants businesses to thrive in Michigan, but in compliance
The MGCB said it is on the side of business owners of bars and restaurants. However, it has a job to do when protecting the integrity of gambling and Michigan citizens.
“We also want to be clear that the MGCB is not hindering local business owners’ ability to increase profits,” Keith said. “Rather, the MGCB is statutorily charged to ensure fair and honest gaming in this state.”
There are laws and rules that business owners must abide by when operating in the Great Lakes State. Keith and MGCB might even have been more lenient than needed, giving owners ample time to shut down illegal gambling with cease-and-desist letters.
The MGCB has provided businesses with educational resources to ensure that any machines is in compliance with Michigan law. The Board also encourages owners to reach out in the case of any questions surrounding the issue.
“Our goal is education and compliance,” Keith said. “Any suggestion otherwise is simply not true.”
