Michigan Cracks Down on Illegal Casino-Style Machines

Social clubs, bars, and private venues providing these games face penalties of up to 10 years in prison and $100,000 in fines.

Ziv Chen - News Editor at Covers.com
Ziv Chen • News Editor
Oct 22, 2025 • 16:56 ET • 4 min read
Photo By - Imagn Images.

Michigan regulators launched a statewide push to eliminate casino-style gaming machines that have been spreading through social clubs, bars, and private venues in recent years, according to WGRD 97.9.

Officials say the machines closely resemble slot games but are not legally licensed or taxed, leading to new debate in the state.

Key Takeaways

  • Michigan casino regulators are seizing unlicensed gaming machines in social venues across the state.

  • Businesses caught operating them could face severe fines and prison sentences.

  • Lawmakers are considering limited approval for regulated redemption-style games.

The Michigan Gaming Control Board (MGCB) confirmed in September it had sent notices to multiple businesses after receiving ongoing complaints about the devices. The warnings emphasized that such machines fall outside the state's gambling laws and can carry penalties of up to 10 years in prison and $100,000 in fines.

Officials say the unregulated machines make it hard to tell the difference between gambling and entertainment. Some operators insist the games require skill and give out gift cards instead of cash as prizes, but authorities say the way the games pay out is still gambling.

The issue has led to several prosecutions and prompted bipartisan talks about possible regulation. A measure introduced in May would let certain venues host up to eight redemption games that issue stored-value cards, but the proposal has stalled without a vote in the Michigan House.

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Ziv Chen
News Editor

Ziv has been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”

When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.

When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.

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