Compliance Updates
Michigan Gaming Control Board Rejects Recent Claims Regarding Skill Games
The Michigan Gaming Control Board (MGCB) has refuted recent assertions questioning the legitimacy of its efforts to protect citizens by combating illegal gambling within the state, particularly in relation to the rise of casino-style electronic gaming machines that self-identify as “skill games.”
In recent years, there has been a notable increase in the presence of electronic gaming machines in bars and restaurants across Michigan. The suppliers of these machines misleadingly contend that the games include an element of skill and are therefore exempt from Michigan’s gambling prohibitions. Specifically, they claim that the games qualify as “redemption games” under MCL 750.310b, which allows a limited and very narrow exception to Michigan’s gambling prohibitions.
“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,” MGCB Executive Director Henry Williams said.
Ongoing investigations by the MGCB have consistently established that the operation of these games does not comply with the strict requirements of MCL 750.310b because these games operate in a manner that is identical to a slot machine, whereby winning depends primarily upon fortuitous or accidental circumstances beyond the control of the player. Patterns observed with the illegal use of casino-style electronic gaming machines have included the use of cash as prizes, issuance of Visa gift cards, and false claims of legality and/or state authorization. Operations of these unregulated gaming machines put citizens at risk — because they have no recourse should they be misled, cheated, or otherwise taken advantage of — and results in a loss of state revenue, depriving Michigan citizens of taxes and revenue used to support schools through the School Aid Fund and communities and local governments with essential state funding dollars.
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.
“The public is being misled when told that skill and gift cards equate to the legality of a machine. What is being ignored is that the machines in question have been played and/or examined by investigators and determined to be casino-style slot machines for which winning depends on chance. And by law they do not qualify as a redemption game exception to the penal code. The mere use of a gift card as a prize does not render the machine legal,” ,” Williams said.
Unregulated machines used illegally lack the necessary consumer safeguards that licensed and regulated establishments provide, leaving the individuals who use them susceptible to unfair practices. More importantly, they offer no player protections and do not allow patrons to influence game outcomes through skill or strategy. This lack of oversight poses significant risks, particularly when minors can access these machines, potentially increasing the likelihood of future gambling problems among youth.
“The presence of unregulated casino-style electronic gaming machines in restaurants and small businesses risks grooming minors for gambling at an early age. This can have damaging consequences on their future well-being, potentially desensitizing them to the negative impacts of gambling, leading to addiction and financial problems later in life. Kids don’t need access or exposure to slot machines when they go out to enjoy a burger and fries or a pizza. If it’s not on the menu, it should not be available,” Williams added.
The MGCB has provided businesses with educational materials to ensure that any machine they are considering having in their business complies with Michigan law. Additionally, these materials have been uploaded to the MGCB website for public consumption. But the MGCB’s efforts continue to be undermined by the repeated spreading of misinformation, causing the illegal use of these machines to expand across Michigan.
The MGCB has also made it clear that it is not hindering local business owners’ ability to increase profits. Businesses engaged in the use of these machines are committing criminal acts with false assurances that their conduct is legal. In cases where investigations into casino-style slot machines have taken place at bars and restaurants, each of the affected business owner(s) were served adequate, advance warning that they were not in compliance with the law by way of cease-and-desist letters that provided them an opportunity to comply before enforcement action, including criminal charges, was taken.
“The MGCB encourages business owners to contact the agency should they have any questions on whether a gaming machine they have in their establishment complies with the law. Our goal is education and compliance. Any suggestion otherwise is simply not true,” Williams said.
Canada
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
| a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
| b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
| c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.
Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayer’s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.
Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.
Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.
Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”
With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.
SOFTSWISS, a leading iGaming software provider, continues its expansion in LATAM by obtaining certification for the Peruvian market for its Jackpot Aggregator, a comprehensive player engagement solution. This follows the recent certification of the SOFTSWISS Jackpot Aggregator in Brazil.
The certification was achieved through GLI, an accredited testing laboratory, ensuring that the Jackpot Aggregator meets all technical and legal requirements set by Peruvian authorities.
The online casino segment in Peru has seen steady ARPU growth, increasing from 181 dollars in 2017 to a projected 513 dollars by 2028. Similarly, online sports betting has shown consistent growth, with ARPU rising from 319 dollars to 453 dollars over the same period.
The SOFTSWISS Jackpot Aggregator effectively caters to both segments, as it can be seamlessly integrated with sportsbooks and online casinos, even those based on third-party platforms. Also, SOFTSWISS recently announced the launch of the first Network Jackpot for Sportsbooks, a rare and effective engagement tool in the market.
Angelina Stasiuk, Head of Business Line at SOFTSWISS Jackpot Aggregator, commented: “When it comes to player retention and engagement while delivering an exciting entertainment experience, the SOFTSWISS Jackpot Aggregator offers a powerful solution. It allows operators to easily configure and implement a variety of mechanics, from multi-level prizes to branded jackpots. We are excited that these effective tools are now available for the Peruvian market.”
The Jackpot Aggregator can also be seamlessly integrated with the SOFTSWISS Game Aggregator, which is also certified for the Peruvian market.
The SOFTSWISS team will be available to discuss sweepstakes, social casino segments and partnerships at SiGMA Americas in São Paulo, Brazil, from 7 to 10 April.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing innovative solutions for the iGaming industry. SOFTSWISS holds several gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team counts over 2,000 employees.
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