HomePublicationsNewsletter ArchiveNewslettersVolume 18Issue 14House Bill Seeks to Allow City Lotteries

On Wednesday, May 9, 2012, State Rep. Jimmy Womack (D-Detroit) introduced House Bill 5608(“HB 5608”) that would amend the state lottery laws to allow Michigan cities to operate their own lottery games. HB 5608 follows a similar bill, House Bill 5417(“HB 5417”), that seeks to allow the City of Detroit to operate a city-run lottery.

According to the HB 5608, the lottery commissioner would be authorized to establish lottery games that are run by Michigan cities. City lotteries would be conducted under the same sets of laws and regulations that govern the state lottery. If passed, the bill would establish a City Lottery Fund within the State Treasury that would receive all proceeds from city-run lotteries, pay winnings, and make distributions of the revenue received.

The proceeds from city-run lotteries would be distributed to cities with populations of 600,000 or more after all winnings had been paid and administrative costs accounted for. According to the 2010 Census, the only city that would qualify for distributions under the bill’s current language is the City of Detroit. However, if any other city sees in increase in total population over 600,000, then the bill states that the money would be distributed proportionately according to population.

HB 5608 is similar to the language put forth in HB 5417, introduced on February 21, 2012 by Rep. Womack. However, HB 5608 removes much of the details regarding the regulation of city-run lotteries that is included in HB 5417, instead delegating this authority to the state Lottery Commissioner and the administrative rule process. In addition, HB 5608 would create a single City Lottery Fund within the State Treasury that would hold funds for all city-run lotteries in the state, whereas HB 5417 would require the local legislative body to establish its own fund to maintain proceeds from the city-run lottery.

HB 5608 has been referred to the House Committee on Regulatory Reform.

 

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