The Michigan Gaming Control Board (MGCB) is reacting to a recent report from the American Gaming Association (AGA) concerning the problem of illegal gambling, vowing to step up its efforts to curb the unlawful activity.
The AGA released a report recently that said despite more states having legal gambling, illegal gambling is still a problem. They estimated that Americans spend approximately $511 billion on illegal gambling.
Gaming machines not in approved casinos are one of the biggest problems, but unregulated sportsbooks and iGaming websites are also contributing to the issue.
The AGA estimates that more than a half-million illegal machines are scattered across the United States.
“Illegal gambling machine operations bring unwanted crime to communities across Michigan and deprive school districts of gaming tax revenue from the state to support education,” MGCB Executive Director Henry Williams has previously said. “The MGCB works to educate citizens and businesses about illegal gambling and to support state and local officials’ efforts to remove machines used illegally.”
Because of this, state governments are missing out on millions of dollars in taxes. Michigan charges 8.4 percent to casinos, with 3.78 going to the state and 4.62 percent going to the city of Detroit. Through October the state has collected $612,611 in taxes, while Detroit has collected $748,747.
Even before the AGA published its report, the MGCB made cracking down on illegal gambling a priority. The MCGB put out a fact sheet making it easier for people to identify illegal machines.
“The Michigan Gaming Control Board this year has conducted a statewide public education and enforcement initiative to encourage businesses to remove unregulated machines used for illegal gaming,” said Mary Kay Bean, Communications Specialist for the MGCB. “The MGCB believes the work to eliminate the illegal use of gaming machines is an important part of our mission to ensure fair and honest gaming for Michigan citizens.”
This year, the MGCB confiscated more than 350 illegal machines and prosecuted 17 people. The state has set up a tip line to report suspicious activity.
Other areas of illegal gambling activity include sports betting and slots. The AGA estimates 40 percent or $100 billion has been wagered illegally on sports.
The AGA also stated that 48 percent of Americans have played illegal online slots or table games in 2022.
