Michigan bar owners have voiced their concerns about recent government activities taken against illegal gambling in the state.
Shortly after taking action against an offshore online gambling operator, the MGCB turned its attention to land-based illegal gambling activities, arresting on June 5 two Saginaw bar owners for alleged illegal gambling activities.
“I am fearful. I don’t want to lose my (liquor) license. I don’t want to get in trouble,” Executive Director of the Michigan Licensed Beverage Association Scott Ellis said.
The issue arises because many bars are using gaming machines known as redemption machines, which allow you to play with cash to win gift cards.
“As long as you are paying with gift cards or prizes and the game has an element of skill, they are legal under the Michigan Gaming Redemption Statute,” Ellis said.
The MGCB has been sending cease-and-desist letters to many bars about using these machines, with the concern being that some establishments have been exchanging winnings as cash instead of gift cards.
“They are actually terrified because of these letters going out in a threatening manner. And if that’s there (exchanging cash instead of gift cards), that’s 100% percent illegal, and we do not condone that at all,” Ellis said.
The MGCB has recently been cracking down on illegal gambling. In a legal conference held in April in Florida, MGCB’s Executive Director Henry Williams spoke about the agency’s plans to prosecute illegal gambling operators.
