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Sponsors seek definition and certification for redemption games; regulators warn of unregulated expansion
Summary
Sponsors of House Bills 4494 and 4495 argued the bills would clarify the definition of redemption gaming and allow third‑party certification and registration, protecting lodges and nonprofits; the Michigan Gaming Control Board opposed the bills, saying some machines function like slot machines and lack consumer protections.
Representatives sponsoring House Bills 4494 and 4495 told the House Regulatory Reform Committee the bills clarify what constitutes "redemption gaming," require third‑party testing by accredited gaming laboratories, and create a registration process for establishments that host certified machines. Sponsors argued the bills protect community lodges and small businesses that use such games for modest revenue streams.
Representatives Snyder and DeBoer said the legislation would ensure games requiring an element of skill — coordination, timing or dexterity — are distinguishable from games of chance and thus not subject to gaming regulatory schemes applicable to casinos. "We need to draw a very distinct line," a sponsor said, citing impacts on Moose Lodges, American Legions, VFWs and other volunteer organizations.
The Michigan Gaming Control Board (Jasmine Tompkins and Aaron Pongrass) opposed the bills in principle. The board said expanding statutory definitions could permit machines that lack responsible‑gaming safeguards (age verification, surveillance, dispute processes) and that some contemporary devices present outcomes that are effectively predetermined. In a video demonstration and oral explanation, a board presenter showed a machine that offers a "nudge" feature; an auditor explained the device uses a database of predetermined outcomes (an example cited was a 100,000‑entry table with about 80% losers and 20% winners) and that the software picks the outcome before the player interacts with the presentation layer.
Industry experts (Nick Farley of Eclipse Compliance Testing and attorney Eric Egan) testified in support of the bills and described testing and certification processes for skill games, arguing that many redemption games require player interaction and skill and that certification can distinguish lawful games from prohibited slot machines.
Veteran‑service organizations (American Legion, VFW) testified about lost revenue and the removal of machines from posts after enforcement actions; the American Legion's legislative chair, Tim Poxon, said many posts had removed machines and cited a local court decision in Saginaw County as supportive precedent. Witnesses urged the committee to codify protections for community posts and indicated that an annual regulatory fee on machines could fund the school aid fund.
Committee members questioned the legal definition of skill in current statute, the certification process, and whether the bills would effectively expand gaming locations. Regulators urged if the legislature proceeds, that language be aligned with existing gaming requirements and protections.
No committee vote on the redemption gaming package was recorded in the transcript during this session.
