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Michigan lawmakers are advancing legislation to modernize portions of the state’s gambling laws that were written decades before casinos, online betting and regulated gaming existed in the state.
House Bill 6068, introduced June 10 by Reps. Cynthia Neeley, Amos O’Neal, Kimberly Edwards and Brenda Carter would amend Michigan’s penal code to clarify that state-authorized gambling activities are exempt from criminal gambling prohibitions. The bill was referred to the House Committee on Regulatory Reform and remains pending without a scheduled hearing.
The proposal does not expand gambling in Michigan. Instead, it updates language in the 1931 penal code to align with modern gaming laws already in place.
Michigan’s gambling statues predate casinos, online betting
Michigan’s gambling-related criminal statutes date back to 1931, when Section 303 of the penal code made it illegal to operate gaming rooms or gambling devices for profit.
At the time, Michigan had no licensed casinos or regulated commercial gaming industry.
That changed in 1996 when voters approved the Michigan Gaming Control and Revenue Act, paving the way for Detroit’s commercial casinos. The state later legalized online casinos and sports betting in 2019 through the Lawful Internet Gaming Act and the Lawful Sports Betting Act signed by Gov. Gretchen Whitmer.
Michigan launched legal online casinos and sportsbooks in January 2021, creating one of the nation’s fastest-growing regulated gaming markets.
Despite those developments, portions of the penal code still technically apply to gambling activity that is now fully licensed and regulated under state law.
HB 6068 creates explicit exemptions for legal gaming
HB 6068 would add three new sections — 310f, 310g and 310h — to formally exempt several categories of legal gaming from Michigan’s criminal gambling statutes, according to bill text on LegiScan.
The exemptions would apply to:
- Games operated by the Michigan Lottery
- Licensed bingo operations conducted under the state Bingo Act
- Gaming activities authorized under the Michigan Gaming Control and Revenue Act, including commercial casinos, online casinos and sportsbooks
The legislation is designed to eliminate ambiguity by clearly separating regulated gaming from illegal gambling operations.
Lawmakers are not authorizing new gambling products or expanding gaming access through the bill.
Bill updates slot machine definitions and seizure rules
The proposal also modernizes Michigan’s definition of a “slot machine.”
Current state law largely references mechanical devices built around traditional spinning reels. HB 6068 expands the definition to include mechanical, electrical and electromechanical gaming devices, reflecting how modern slot-style machines actually operate today.
The legislation keeps Michigan’s existing exemption for antique slot machines that are at least 25 years old, provided they are not used for gambling purposes.
However, the bill changes how illegally operated machines would be handled after seizure.
Under current law, confiscated machines are generally transferred to the director of the Michigan State Police for auction. HB 6068 instead routes those cases through Section 308a of the penal code, allowing courts to determine whether seized property should be destroyed, sold or otherwise disposed of.
Proceeds from sales would continue to be distributed to the local jurisdiction responsible for the seizure unless state authorities led the investigation.
Crane game restrictions and penalties stay in place
Several longstanding exemptions would remain unchanged under the proposal.
Mechanical amusement devices would still be allowed to award up to 15 free replays without violating gambling laws. Crane games and claw machines would also retain their current exemption.
Operators who illegally modify crane games to bypass state restrictions would still face felony penalties carrying up to two years in prison and fines of up to $20,000
Timing coincides with Michigan enforcement efforts
The legislation arrives as Michigan regulators continue to intensify enforcement against illegal gambling operations.
Earlier this month, investigators with the Michigan Gaming Control Board seized illegal gambling machines during a raid at a business in Adrian, Michigan. Authorities also confiscated cash and computer-based gambling devices.
The Michigan Gaming Control Board has also continued issuing cease-and-desist letters to offshore gambling operators targeting Michigan residents.
MGCB Executive Director Henry Williams previously said regulators will “continue to work diligently to identify and eliminate” illegal gambling operations throughout the state.
By explicitly exempting regulated gaming from criminal statutes, HB 6068 could further strengthen the legal distinction between licensed operators and illegal gambling businesses.
HB 6068 awaits committee action in Michigan House
HB 6068 remains before the House Committee on Regulatory Reform, where no hearing date has been announced.
If passed, the bill would amend Sections 303 and 308a of Michigan’s penal code while adding three new exemption sections covering lottery gaming, charitable bingo and state-regulated casino gaming.
