According to the rules, the machine would be played out until one of the following occurs:
- It halts. (A player wins and the other loses)
- It visits a previously-visited state. (Loop of mandatory actions ⇒ Draw)
- Time runs out. (Draw)
Of course, tournaments have human judges and human organizers, and these may decide a different outcome is appropriate.
Sometimes, a game of MTG returns to a previously visited state. When this happens, the game is deemed to have looped, and one of two things happens:
If non-mandatory actions were taken in between the two identical states, a player must take a different action.[CR 721.3]
If only mandatory actions were taken in between the two identical states, the game ends in a draw.[CR 721.3]
It's crucially important that we don't need to determine if a loop will occur; we only need to determine if a loop has occurred.
Determining if a loop will occur requires solving the halting problem.
Determining if a loop has occurred "merely" requires comparing the current game state against the previous game states. While unbounded storage may be required to record every achieved game stats and whether the action that caused the transition to each state was mandatory or not, solving the halting problem isn't required.
In practice, keeping track of each state isn't necessary because each state is assumed to be unique until the assumption has been demonstrated to be false. In other words, people only start paying attention if they suspect a loop is occurring.
721.3. Sometimes a loop can be fragmented, meaning that each player involved in the loop performs an independent action that results in the same game state being reached multiple times. If that happens, the active player (or, if the active player is not involved in the loop, the first player in turn order who is involved) must then make a different game choice so the loop does not continue.
721.4. If a loop contains only mandatory actions, the game is a draw. (See rules 104.4b and 104.4f.)
We've established that it isn't necessary to solve the halting problem to determine if the game has resulted in a draw.
So what are the actual consequences of being able to implement a Turing Machine in M:TG?
Proposing a Shortcut May Require Solving the Halting Problem
When players propose a shortcut, they describe a sequence of game choices which may be a loop that repeats a specified number of times. For a shortcut to be proposed, the resulting game state must be known by the player proposing the shortcut, and it must end with a player gaining priority. As such, the loop only occurs if the loop is already known to halt.
But it does mean that a player may have to solve the halting problem to determine final state of the shortcut he wants to propose. Attempting to do so with result in a Slow Play error. They will be forced to abandon their shortcut.
In short, a timeout is utilized to avoid having to solve the halting problem.
Knowing If a Game Will End May Require Solving the Halting Problem
It's possible for a M:TG game to never end. Trying to determine if they will end (and when) would require solving the halting problem. Rather than trying to do this, tournament games are given a time limit.
In short, a timeout is utilized to avoid having to solve the halting problem.