The Michigan Gaming Control Board says it's going to continue to crack down on illegal, unregulated slot machine-type machines often found in bars, restaurants, and gas stations - despite the manufacturers claiming they are exempt from Michigan's gambling prohibitions.

Kurt Steinkamp is Chief of Staff of the Michigan Gaming Control Board. He says the distributors of the machines try to use loopholes in the state's gambling laws, such as pretending they involve an element of skill, or giving winners gift cards, to try to pose as something other than what they are - unregulated, illegal slot machines.

He says there's numerous problems with these machines. One is, they may not provide a minimum payout - as regulated gaming must do. And there's nothing users can do if they're cheated. The state also can't ensure that people playing on the machines don't gamble too much.

"Often, we see these machines appearing in under-served communities," Steinkamp said. "You have kids playing on these types of machines."

Steinkamp says the machines also compete with regulated gambling, which is taxed.

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. These investigations have also resulted in 436 illegal machines seized, along with $176,001.69 in cash and $15,415 in Visa, MasterCard, and/or Simon gift cards.

https://www.michiganpublic.org/criminal-justice-legal-system/2024-07-19/state-to-keep-cracking-down-on-fake-skill-based-slot-machines-in-bars-restaurants-gas-stations