HomePublicationsNewsletter ArchiveNewslettersVolume 20Issue 9New Bill Seeks to Revise Regulation of Charitable Gaming in Michigan; MGCB Withdraws Revised Charitable Gaming Rules

On Tuesday, March 18, 2014, State Senator Rick Jones (R-Grand Ledge) introduced Senate Bill (“SB”) 878, a sweeping measure that seeks to revise the operation and regulation of charitable gaming in Michiganby amending the Traxler-McCauley-Law-Bowman Bingo Act, the 1972 law that authorized charitable gaming in the state.  In particular, SB 878 codifies a new regulatory structure for the operation of “millionaire parties”, the charitable gaming events where wagers are placed on games of chance usually associated with a casino using imitation money or chips.  The bill includes provisions related to:

· The annual licensing of “charitable gaming service providers”

· Event advertising restrictions

· Requirements for locations that will host millionaire parties

· Operational requirements (Wagering limits, hours of operation, etc.)

· Compensation of event workers

· A cap on payments allowed to charitable gaming service providers

If passed, SB 878 would also rescind any current administrative rules related to the conduct of millionaire parties, and require the Executive Director of the Michigan Gaming Control Board to promulgate new administrative rules within one year.  A copy of the current version of SB 878 can be found here: http://www.legislature.mi.gov/(S(c5bybzjycfhjzx45i0oiim55))/mileg.aspx?page=getObject&objectName=2014-SB-0878.

On Wednesday, March 19th, and following the introduction of SB 878, the Michigan Gaming Control Board (“MGCB”) withdrew its proposed revised rules for the operation and regulation of millionaire parties during a hearing before the Michigan Legislative Council’s Joint Committee on Administrative Rules (“JCAR”).  According to the Detroit Free Press, Mike Maher of the MGCB told the JCAR hearing panel that the proposed rules were being withdrawn “until a later date.”  The MGCB’s proposed rules had been submitted for consideration by JCAR in an effort to bring more comprehensive oversight and regulation to millionaire party events.

SB 878 has been referred to the Michigan Senate Regulatory Reform Committee.


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