The ongoing campaign to root out unlawful gambling operations has gained further traction in Michigan, evidenced by the stringent enforcement action taken by the Michigan Gaming Control Board (MGCB) in collaboration with state authorities. A decisive crackdown has seen orders to desist issued to 64 businesses in 2023, on the back of accusations of facilitating illegal gambling. These rigorous enforcement activities led to the confiscation and decommissioning of 167 unauthorized gambling machines.
Throughout the year, with the backing of the Michigan Attorney General’s Office, the MGCB’s investigative efforts bore fruit as they resulted in nine individuals receiving criminal convictions for gambling offenses. Additionally, almost two dozen others were arraigned on charges related to illegal gambling ventures.
At the heart of these operations lies MGCB’s commitment to preserve the integrity of Michigan’s lawful gaming industry and to protect consumers. State regulations clearly stipulate that all forms of gambling are prohibited unless expressly permitted by state law. Consequently, gambling machines are exclusively sanctioned within state-licensed casino premises.
MGCB executive director Henry Williams lauded the achievements of the board, emphasizing the agency’s vigilant oversight that facilitated the disruption of numerous illicit gambling activities last year, which challenged the integrity of the regulated sector. “With a commitment to maintaining fairness, transparency, and public trust, these proactive efforts were undertaken to ensure safe, regulated gambling environments,” Williams stated.
Unlicensed gambling devices not only infringe on the investments of legitimate gaming enterprises but also lack the vital consumer protections that legal establishments uphold. According to the MGCB, such illegal enterprises often expose vulnerable individuals to possible unfair practices due to the absence of regulatory safeguards.
The MGCB did not shy away from visually demonstrating their crackdown, going as far as publishing photographs of these unlawful machines being demolished in a scrapyard, sending a strong message about the seriousness of their operations.
2015 marked the inception of intensive investigations that, by July 2023, resulted in the seizure of 1,195 illegal machines and an accumulation of $470,402. Last year, the MGCB and the Liquor Control Commission embarked on a collaborative public education campaign, aimed at fostering awareness about the illegal use of gambling machines among both the public and business owners.
Michigan’s Attorney General, Dana Nessel, sternly remarked, “The machines destroyed by the MGCB are the tools of criminals, cheating not just their neighbors but also the state out of revenue intended to support schools.” She underscored the broader community hazard posed by illegal gambling operations as they often emerge as centers for additional criminal activity and violence.
In other areas of Michigan’s gaming income, the three Detroit casinos posted an aggregate revenue of $104.6 million for February 2024, which includes figures from table games, slots, and retail sports betting. While table games and slot revenue saw a minor drop of 0.2% relative to February 2023, it marked an 11.6% increase over January 2024’s revenues. The reported $13.2 million in total retail sports betting handle, however, reflected a downturn from the preceding year, with gross receipts in the negative.
On the online gambling front, Michigan’s operators noticed a downturn in February, with a 4.8% decrease compared to January’s results, combining receipts from iCasino and sports betting handle. Nevertheless, the $188 million garnered by the online casino broke the previous record, highlighting the volatile nature of the gambling industry.
In light of these dynamics, last July the MGCB initiated a new awareness campaign called “Don’t Regret the Bet,” developed in partnership with King Media. This initiative, encompassing an array of media platforms from TV to social media, aims to advocate for responsible gambling and directing consumers toward legally sanctioned operators.
All said, these firm measures and educational efforts demonstrate Michigan’s unwavering resolve to maintain legal gambling practices and ensure a level playing field within the gaming industry.
