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In recent years, the Michigan Gaming Control Board has intensified its efforts to crackdown on illegal gambling operations.
Three individuals have been sentenced to jail time, probation, and community service for their involvement in running an illicit gambling operation, concluding a 2019 investigation that spanned the past week.
The Spin City case and sentencing
In mid-2019, charges were filed by the Michigan Department of Attorney General against Spin City regarding its operation.
The establishment known as Spin City, situated at G-3490 Miller Road in Flint Township, was determined to be operating as an illegal gambling venture.
After receiving a report from the Flint Township police regarding suspected illegal gambling, MGCB investigators determined that this was the case.
MGCB Executive Director Henry Williams expressed gratitude towards the Attorney General’s office and police agencies in Michigan for their support in eradicating illegal gambling establishments that specifically prey on low-income neighborhoods, lack player safeguards, and pose a risk of more severe criminal activities. Williams also highlighted that these illicit gambling venues deprive K-12 schools of tax revenue, which is generated from legal and regulated gambling operations.
Each of the three defendants has been sentenced to a one-day jail term and will be obligated to undergo random drug testing throughout their probation period.
The sentencing proceeded in the following manner:
- Anthony Sutton, a 53-year-old resident of Wilmington, N.C., admitted guilt to a felony charge related to running a gambling operation. As a consequence, he received a sentence of one year of probation, 100 hours of community service, and was required to pay $1,058 in fees and costs. Additionally, Sutton had to give up approximately $12,500 in cash to the Flint Township Police Department, along with 67 computers and games that were seized by the State of Michigan during a search warrant executed on February 27, 2019, resulting in the closure of the operation.
- Kara Schilling, a 38-year-old resident of Flint, admitted guilt to operating a gambling establishment for profit, a misdemeanor offense. As a consequence, she has been placed on a one-year probationary period. Moreover, Schilling is obligated to complete 50 hours of community service and pay a sum of $1,058 to cover associated fees and costs.
- Flint resident Marjorie Brown, aged 53, has admitted her guilt in attempting to operate a gambling house for profit. As a consequence, she has been placed on a six-month probation period, assigned 100 hours of community service, and required to pay $985 in fees and costs.
Spotting illegal operations and machines
On its website, the MGCB clearly delineates the criteria for determining unlawful operations or prohibited machines.
These are the warning signs to be aware of when dealing with an illegal machine:
- If the player wants to participate, there is a fee required.
- The games’ results are primarily influenced by unforeseen or chance events, making it different from arcade video games where players have control over the outcome.
- Something valuable may be awarded to the player.
- Current state law does not encompass them.
Michigan business owners may be misled by gaming machine suppliers who claim that their games are legal for non-gambling venues, despite the fact that this is frequently untrue.
The MGCB frequently asserts that the games are based on skill, payouts are made in gift cards rather than cash, or they are categorized as redemption games.
Illegal machines no help for anyone
The presence of regulated gaming machines in Michigan holds significance as they are mandated to allocate a portion of their earnings towards the state’s development.
After analyzing the increasing tax revenue generated by retail and online gaming, it is evident that a significant portion of these funds directly contributes to the improvement of schools across the state.
Players should be aware that these unregulated machines do not follow the necessary guidelines for payout percentages. Consequently, there is a high likelihood of losing your money without any genuine possibility of receiving a return.
The MGCB lacks the authority to address any disputes regarding winnings if they occur on an unregulated machine.
Businesses that make use of these machines are at a higher risk of experiencing severe criminal activity. This could result in:
- Loss of liquor license
- Loss of lottery license
- Criminal prosecution
- Monetary fines
How much MGCB has cracked down
In recent news, we have covered several incidents of raids and confiscation of unlawful gaming machines across the state.
So far, 246 felony and misdemeanor charges have been filed against Michigan business owners who have utilized machines for illegal gambling.
Michigan has, up to this point, seen the issuance of 41 warrants regarding the matter, resulting in the seizure of over 1,000 machines. Furthermore, a significant amount of cash totaling nearly $250,000 has been surrendered to local law enforcement.
If you have come across an illegal gaming machine and wish to report it, dial 888-314-2682. Should you have any additional inquiries regarding this matter, feel free to reach out to the MGCB at 313-456-4100.
