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Michigan Launches Crackdown on Illegal Gaming Machines
By Jeff Osienya Jan 22, 2022 IndustryMichigan regulators have recharged their illegal gambling fight via public education programs sensitizing them of local law and dangers of unregulated gambling. Residents have been encouraged to report any suspicious gambling activities they may witness.As part of a years-long bid to fight illegal gaming machine operators, the Michigan Gaming Control Board (MGCB) and the Michigan Liquor Control Commission (MLCC) have once again joined forces against unregulated gambling. The duo has resolved to keep the heat on businesses operating gaming machines on their premises without proper licenses. In addition, the two bodies will be conducting an education program to sensitize the community and local businesses on the risks of illegal gaming machines.
Communication materials will be produced as a reference point for individuals and businesses so that everyone can understand exactly what the law of the land says. Some of the materials include a fact sheet about Michigan law and another on unregulated machines. These will be shared with businesses state-wide so that they won’t have any excuses concerning what is legal and what isn’t in Michigan. On top of that, an anonymous tip phone line has already been set for whistle-blowers to report any suspicious gambling activities they may witness across the state.
Gaming Sector Executives Chime In
Mr. Henry Williams, the MGCB Executive Director, reiterated the dangers associated with the use of such machines. He said:
Quote“Illegal gambling can lead to other, more serious crimes that compromise safety in Michigan communities. Citizens who use these unregulated machines also have little recourse if they feel cheated. They can’t file a formal dispute with an unregulated operator and ask our agency to review the outcome as they can when participating in licensed, legal gaming.”
The MLCC Chair Pat Gagliardi also spoke on the matter, saying:
Quote“Liquor licensees who allow illegal gambling and who fail to remove gambling devices used for illegal gaming from their businesses can face violations from the Michigan Liquor Control Commission. Illegal gambling is considered a serious violation by the Commission, and the penalties from a violation can include fines, suspension, or revocation of a liquor license. Liquor licensees are encouraged to utilize only legal forms of gambling to stay compliant with the Commission’s laws and rules.”
These sentiments have been outlined in a white paper released by the AGA in early 2021, which was calling for the rooting out of illegal gaming machines. The paper was titled “Skilled at Deception: How Unregulated Gaming Machines Endanger Consumers and Dilute Investments in Local Economies.” It revealed that since illegal gambling machines are unlicensed and not subject to testing and set regulations, they are likely to be used to perpetrate crimes such as money laundering, gang-related violence, and drug trafficking. Furthermore, according to the AGA, unregulated gambling activities do not generate essential tax revenue for states and have no way of protecting consumers from rigged games and irresponsible gambling.
Great Benefits Expected from the Education Initiative
The training will entail a rundown of the main Michigan gambling laws that particularly regulate gambling machines. Through the initiative, the Great Lake State wants to ensure that the public and local businesses are alerted to possible loopholes that may be exploited to encourage the spread of misinformation about gaming machines. It has been found that some of the businesses hosting illegal gaming machines are unaware that they are breaking the law as a result of being misled by gaming equipment and software providers.
With the program being targeted at both citizens and businesses, ignorance can no longer be used as a defense. In fact, any businesses that realize they have been illegally operating gaming machines are required to remove them from their premises immediately. Some of the repercussions that may befall businesses that fail to take heed of the warnings include revocation of liquor licenses for liquor stores, fines, and suspension. For example, all licensed liquor stores are supposed to use legal gambling forms to remain compliant.
Michigan Attorney General Dana Nessel has expressed support for the initiative citing that the laws set by the State of Michigan are there to protect the interests of gamblers in the jurisdiction. She indicated that her office would work hand-in-hand with the MLCC and the MGCB to enforce the law when called upon to do so. She added that they would promptly hold accountable all those that ignore the chance to report any suspicious activities related to gaming machines.
Zero Tolerance for Illegal Gambling
The State of Michigan has been battling to combat illegal gambling a bit longer than most, and their efforts seem to be bearing fruit. Although the problem is one that cuts across the U.S, the approach used by Michigan is proving to be more successful than most. The better success rates in combating the problem are thanks to group efforts by the general public and government agencies that include the Attorney general, police departments, gaming boards, and liquor and lottery boards.
Since 2012, the Michigan Gaming Control Board (MGCB) has reportedly confiscated over 1,000 illegal gambling machines from establishments operating gambling machines outside casinos. They include gas stations, bars, clubs, convenience stores, internet cafes, and restaurants. Most of these have been reported to be disguising as slot machines while evading tax and related regulatory issues.
As such, the perpetrators have been slapped with a total of over 240 misdemeanor charges and paid fines amounting to as much as $250,000 combined. Meanwhile, the number of public tips that law enforcement has been receiving is still relatively small, at 86, 92, and 78 in 2018, 2019, and 2020 respectively. On the other hand, the board reported that it has been receiving such a small number of tips over the years that it wouldn’t disclose the actual figures.
From the look of things, the fact that closing one of these means that another will just pop up somewhere else makes it all the more difficult to stop the activities completely. Even then, one of the main factors that have contributed to the apparent success here is the presence of only 26 brick-and-mortar licensed operators. Such a small number of licensees makes it a lot easier to identify illegal gambling activities around the Great Lakes State.
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