A wand-shaped handheld device tethered to a fixed structure in a gaming system by one or more cables wound around reels. The handheld device includes a button on a top thereof as a secondary input means. Motors coupled to the reels wind the cables or apply an opposing force to a pulling force applied to the device. Sensors detect how far the cables are retracted or pulled relative to the fixed structure. Haptic feedback devices impart tactile vibrations that are transmitted along the cable(s) and to the handheld device as the motor is pulling the handheld device toward the fixed structure or a player grasping the device is pulling it away from the fixed structure. Wagering game graphics are coordinated with the movement of the device so that movements or selection of the graphics are affected by inputs made by moving the handheld device or pressing its button.