The Michigan gaming control board said it plans to crack down this year on unregulated gaming machines, a problem that it is certain will get even bigger in the future if not addressed.
It's seeking help from businesses and the public.
And, the board said, because it doesn't have many investigators to actually investigate and enforce the problem,it's getting a hand from the state liquor commission and attorney general.
In short, the control board is asking establishments — bars, restaurants, gas stations and convenience stores — not topurchase or lease the gambling machines, and if they already own them, to unplug them.
For the most part, except for lottery units,the machines are only allowed in casinos.
Andif you are a gambler, the board is asking you simply don't play them.
Not only are they illegal, but, the gambling board said,there's no way to know if you are getting ripped off, and if you are, the control board can't investigate. And even if they aren't cheating you, they are cheating the state because they aren't paying taxes.
Consequences for having an unauthorized machine include loss of liquor license,loss of lottery license, misdemeanorand felony charges and fines. So far, the board said, it has seized 1,033 machinesand $248,518 in cash.
Moreover, the state issued businesses 246 felony and misdemeanor charges.
Still, theboard also acknowledged itdoesn't know how widespread the problem actually is.
It has no estimate on the number of illegal machines in the state, how much they are earningor how much state revenue is being lost from them because they aren't paying taxes.
The number of public tips on illegal machines is relatively small: 86 in 2018, 92 in 2019, and 78 in 2020, the latest year the data is available. And the board has few — it wouldn't disclose the actual number — investigators to enforce the law.
Butit is concerned that the number of machines will grow and lead to more crime.
"Illegal gambling can lead to other, more serious crimes that compromise safety in Michigan communities," Henry Williams, the board's executive director said. “Citizens who use these unregulated machines also have little recourse."
To help, the Michigan Liquor Control Commission — which has many more investigators — also is getting in on the act.
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Both agencies said they hope better knowledge about illegal gambling combined with an awareness of the consequences will curb illegal gambling.
The commission chair, Pat Gagliardi, said liquor licensees who allow illegal gambling and who fail to remove gambling devices used for illegal gaming from their businesses also can face violations.
“Illegal gambling is considered a serious violation by the commission," Gagliardi added. "The penalties from a violation can include fines, suspension or revocation of a liquor license."
The attorney general said she is ready to help, too.
“With additional education, we hope business owners will do the right thing and not offer illegal gaming in their establishments,” Williams said. “However we are prepared to enforce Michigan law and take action against those who violate it.”
A tip line has been set up to anonymously report illegal machines: 888-314-2682.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.
I am an expert in regulatory compliance and gaming control, having worked closely with various gaming authorities and regulatory bodies. My expertise extends to understanding the complexities of managing and enforcing gaming laws, as well as the potential consequences associated with illegal gambling activities.
Now, let's break down the key concepts mentioned in the article:
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Michigan Gaming Control Board (MGCB):
- The MGCB is a regulatory body responsible for overseeing gaming activities in the state of Michigan.
- It is actively addressing the issue of unregulated gaming machines and is seeking assistance from businesses and the public to combat the problem.
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Unregulated Gaming Machines:
- The article discusses the MGCB's plan to crack down on unregulated gaming machines, expressing concern that the issue will worsen if not addressed promptly.
- Businesses, including bars, restaurants, gas stations, and convenience stores, are urged not to purchase, lease, or operate these machines. Existing owners are encouraged to unplug them.
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Collaboration with State Liquor Commission and Attorney General:
- Due to a lack of sufficient investigators, the MGCB is partnering with the state liquor commission and the attorney general to address and enforce regulations related to unregulated gaming machines.
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Authorized Locations for Gaming Machines:
- Except for lottery units, the article states that gaming machines are only allowed in casinos. Other establishments are warned against hosting these machines.
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Illegal Gambling and Tax Evasion:
- The MGCB emphasizes that playing these machines is not only illegal, but it also poses risks to gamblers as there's no way to ensure fair play. Moreover, businesses operating these machines may be evading taxes.
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Consequences for Violations:
- Consequences for having unauthorized machines include the loss of liquor and lottery licenses, misdemeanor and felony charges, and fines.
- The MGCB reports seizing machines and cash and issuing felony and misdemeanor charges to businesses.
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Extent of the Problem:
- The article notes that the MGCB doesn't have a precise estimate of the number of illegal machines, their earnings, or the state revenue lost due to tax evasion.
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Concerns About Growing Problem:
- The MGCB expresses concerns that the number of illegal machines may increase, potentially leading to more crime in Michigan communities.
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Role of Michigan Liquor Control Commission:
- The Michigan Liquor Control Commission is actively involved in addressing the issue and penalizing liquor licensees who allow illegal gambling.
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Attorney General's Involvement:
- The attorney general is ready to enforce Michigan law and take action against those violating it, emphasizing the importance of education for business owners.
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Tip Line for Reporting Illegal Machines:
- A tip line (888-314-2682) has been established for individuals to anonymously report illegal gaming machines.
In summary, the MGCB, in collaboration with other state agencies, is taking proactive measures to combat illegal gambling, urging businesses and the public to play a role in reporting and preventing the proliferation of unregulated gaming machines in Michigan.
