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Compliance Updates

Michigan Gaming Control Board Rejects Recent Claims Regarding Skill Games

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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.

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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.

Compliance Updates

Washington’s Lottery Achieves Nation’s Highest Level of Responsible Gambling Certification

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Washington’s Lottery announced that it has achieved the highest level of responsible gambling certification in the country. As acknowledged by the National Council on Problem Gambling (NCPG) and the North American Association of State and Provincial Lotteries (NASPL), Washington’s Lottery officially was certified for “Responsible Gambling Verification Best Practices at the Sustaining Level” in December 2024, the culmination of a process that began with certification at the Planning Level in 2019 and Implementation Level in 2021.

Washington’s Lottery is only the third state lottery in addition to Virginia and Ohio to achieve this milestone. NCPG and NASPL also recognize nine other state lotteries that have achieved a similar certification through the World Lottery Association.

“I can’t begin to express how proud I am of the work our team has done to achieve this important standard. We have a unique obligation as a state agency that sells a gambling product and need to balance the goal of raising money for important state initiatives like education with the need to acknowledge and assist the small percentage of players who may experience gambling-related distress. We take that work very seriously and weave it into all aspects of our jobs,” Kristi Weeks, Director of Legal Services for Washington’s Lottery, said.

To receive the Sustaining Level certification, Washington’s Lottery was evaluated by a team of four independent experts, who reviewed the lottery’s efforts in eight key categories related to responsible gambling: planning, employee training, retailer training, public education and awareness, product oversight, research, advertising, and resources.

“The key to our success has been the integration of responsible gambling initiatives into each and every employee’s position rather than centralizing it into only one or a few positions,” Weeks added.

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Compliance Updates

IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud

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IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud

 

Six payment providers have signed a Declaration of Commitment and Participation

In a pioneering move to bolster the integrity of Brazil’s newly regulated and rapidly expanding sports betting market, the International Betting Integrity Association (IBIA) today launched a dedicated Payment Provider Forum with the explicit goal of protecting the market from financial fraud related to competition manipulation. The project has launched with six prominent payment providers already signed up to a Declaration of Commitment and Participation: Bazk, Z.ro Bank, OneKey Payments, OKTO, VPag and Pay4Fun.

With IBIA’s members forecast to generate over 70% of remote gross gambling revenue in Brazil, IBIA will play a key role in protecting the integrity of the sports betting market. Payment providers and other related financial services can also play a crucial role in ensuring the integrity of sports betting. The IBIA Payment Provider Forum has therefore been established to foster collaborative activities that contribute to a robust, secure and responsible gambling market in Brazil.

Regulatory and other institutions linked to financial payments and competition manipulation will be invited to join Forum meetings and engage in the development and implementation of preventative actions against financial fraud.

The Forum will also benefit from IBIA’s extensive knowledge of sports betting integrity issues and trends, obtained from its global integrity monitoring and data intelligence network. That includes many of the world’s largest regulated betting operators, active across six continents, and partnerships with leading sports bodies and gambling regulatory authorities. It will also leverage IBIA’s expertise in establishing industry standards, such as its Data Standards Kitemark.

Khalid Ali, CEO at IBIA, said: “Cooperation between financial services, regulatory authorities and betting operators is essential to address the challenges from financial fraud and to maximise the potential of the sector in Brazil. IBIA is therefore delighted that these major payment institutions have agreed to explore collaborative activities to protect the market. Working together, we can create a sustainable and thriving sports betting market in Brazil that benefits all stakeholders. Cross-sector partnership working is a central pillar of IBIA’s global activity, and the association will be assessing the potential benefits of replicating this group in a wider international setting.”

To that end, the Declaration’s signatories have committed to:

  • Collaborate in the development of standards and best practices for payment processing.
  • Engage with regulatory bodies to defend a robust, fair and effective regulatory framework.
  • Promote responsible gambling and consumer, market and sporting event protection.
  • Share knowledge and expertise to innovate and improve the payments ecosystem.
  • Maintain the highest standards of ethical conduct and compliance with regulations.

The first meeting of the Forum will take place during SBC Rio.

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Compliance Updates

Aristocrat Interactive Secures Approval for OASIS Rollout in Washington

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Aristocrat Interactive, the rebranded online Real Money Gaming (RMG) division of Aristocrat, has received certification from the Washington State Gambling Commission to roll out its OASIS system to Class III operators across the State. OASIS is a comprehensive casino management system designed to offer a superior experience for land and sea-based operators.

Through this new jurisdiction approval, OASIS is now available to all 29 federally recognized tribal casinos in the state with a Class III Gaming Compact. This approval builds on OASIS’ existing authorization for Class II gaming in Washington, as BJ’s Bingo & Gaming in Fife, WA has used Aristocrat Interactive’s OASIS system for many years.

“We are thrilled that our OASIS system has been licensed by the Washington State Gambling Commission, and we look forward to working with more Casinos as we expand our footprint across the state. We strive to provide our casino partners with innovative solutions, helping them stand apart from their competition,” Kristen Jones, VP Sales of Aristocrat Interactive Gaming Systems, said.

With 360 partners across North America, Aristocrat Interactive Gaming Systems’ product suite has proven to be a key addition to casinos looking to enhance their operational capabilities. Quinault Beach Resort will be the first operator to incorporate the OASIS system through this new approval.

“We look forward to being the first-Class III casino in Washington to utilize the OASIS system across our casino floor. It is a cutting-edge solution that we are confident will lead to increased efficiencies across our operations,” Mark Palmer, GM at Quinault Beach Resort, said.

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