The Michigan Gaming Control Board (MGCB) has now made its stance clear on skill games not once but twice.
Skill games, known as “redemption games” in Michigan, are legal if and only if they meet specific criteria defined by state law. If not, the state has every right to stop illegal gambling actions.
The MGCB said that not all machines that “identify as ‘skill games’” fit those standards. It sent cease-and-desist letters to business owners with illegal machines, which resulted in an executive of the Michigan Licensed Beverage Association calling its letters “threatening.”
In response, the MGCB discredited the claims that its efforts were illegitimate. Recently, it confirmed that message in a press release, which said it “refutes recent assertions questioning the legitimacy of its efforts to protect citizens by combating illegal gambling within the state.”
Michigan skill games in the spotlight
Michigan has some of the friendliest gambling laws in the US. Its offerings include the Michigan online lottery, numerous online casinos and sportsbooks, three commercial casinos, and 23 tribal casinos.
Legal gambling provides tax revenue that supports local communities, schools, and government projects. It also operates in a regulated environment, ensuring players’ safety and security.
On the other hand, unregulated slot machines generate no revenue for local communities or the state and put legal operators at a comparative disadvantage. They can also put citizens at risk in multiple ways:
- There is no way to ensure the legitimacy of a machine’s payout frequency
- Players have no recourse if they are cheated, misled, or taken advantage of
- Machines have a lack of oversight, creating conditions where underage gambling may occur
As a result, the MGCB is taking the matter seriously. MGCB Public Information Officer Lisa Keith told PlayMichigan, a sister site to PlayiLottery, “The MGCB refutes the recent claims that its efforts to combat illegal gambling are invalid.”
MGCB Executive Director Henry Williams echoed that sentiment in the press release:
“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 and Williams used identical quotes to describe their desired outcomes when discussing the matter: “Our goal is education and compliance. Any suggestion otherwise is simply not true.”
Slot machines in skill games’ clothing
The MGCB’s statement said electronic gaming devices have grown in popularity in Michigan restaurants and bars in recent years. Business owners pass off these machines as redemption games, which are legal in Michigan under MCL 750.310b.
Redemption games, or skill games, require a skill component to determine the outcome of a game, such as bowling, rolling, throwing, etc.
They also require winnings to be noncash prizes, such as toys, novelties, and gift cards. Prizes cannot exceed $3.75 per individual win, and players may accumulate up to $500 wholesale value in winnings to redeem any item.
According to the MGCB, many electronic gaming machines operate under the guise of redemption games by offering noncash prizes.
However, investigations have shown that the machines function identically to slot machines. They are purely games of chance where players have no involvement in the final outcome.
Skill games also contested in Pennsylvania, Virginia
While Michigan has established its stance on skill games, other states have different interpretations of their legalities.
Skill games are illegal in Virginia and will remain that way after Gov. Glenn Youngkin vetoed an amended Senate Bill that would have lifted the ban. The state banned skill games in 2021, and the Virginia Supreme Court reinstated the ban in the fall of 2023.
It has affected many small businesses, including retailers of lottery draw games, Keno, and instant win games. Some retailers have suspended their sales of lottery tickets in protest.
Meanwhile, Pennsylvania’s Commonwealth Court ruled in December 2023 that skill games were legal in the Keystone State. Gov. Josh Shapiro supports a regulated skill game industry, but recent news confirmed that language around PA skill game legislation was removed from the FY 2024/2025 budget.
However, Philadelphia has a different opinion and has banned skill games from various locations in the city. A city judge upheld that ruling earlier in July.
The state’s Supreme Court will have the final say, though. It accepted a petition to review last December’s ruling, and its decision will outweigh all that came before it.
Photo by WHYFRAME via Shutterstock
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