HomePublicationsNewsletter ArchiveNewslettersVolume 20Issue 21Michigan Gaming Control Board Issues New Emergency Charitable Gaming Rules

On July 2, 2014, the Executive Director of the Michigan Gaming Control Board (“MGCB”) filed Millionaire Parties Emergency Rules (“Emergency Rules”) with the Michigan Secretary of State, which modify the existing rules governing licensed Millionaire Parties.

Notably, and from a historical perspective,  the preamble to the Emergency Rules state:

“[t]he new administrative rules went into effect on May 14, 2014. But on May 30, 2014, the Michigan Court of Claims, Hon. Pat M. Donofrio, issued an order enjoining the Executive Director from enforcing the new rules ‘in [a] manner that is inconsistent with the prior practice and rules that were in force prior to the issuance of the new rules.’ Michigan Charitable Gaming Assn v Kalm, Mich Ct of Claims No 14-112-MZ (issued May 30, 2014). The implication of this order is to permit self-proclaimed “poker rooms” to daily operate large-scale gambling in a manner not contemplated by the Bingo Act, without the necessary safeguards found in the newly promulgated rules. Given the need for consistent regulation, the order must be applied beyond the parties to the suit. Further, attempts to enforce the new rules against non-parties may spawn additional litigation, which is not in the public’s best interest.”

Certain rule changes include the number of persons required to be present from the charitable organization during an event as well as a prohibition on certain people to engage in gambling at the charitable event. 

For a full reading of the newly issued Emergency Rules please Click Here.

 

 

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