The Michigan House recently voted 100-9 to approve a measure that would ease charitable gambling industry regulations that charities claim have restricted their fundraising efforts.
State Rep. Tom Barrett, sponsor of the bill, said the Michigan Gaming Control Board, which was given oversight of charitable gambling by Governor Rick Snyder’s administration in 2012, has overstepped its authority. He stated, “Mom-and-pop charities have been squeezed out and have had an incredibly difficult time” dealing with the state. “Their fundraising benefits a lot of our communities and should be allowed to be done without overarching regulation that’s done in a way that just tries to inconvenience them instead of safeguard the public from abuse,” Barrett said.
The bill has moved to the Senate, which passed similar legislation in February and also in 2015, but that bill never reached Snyder’s desk.
In particular, the bill addresses so-called “millionaire parties,” casino-style events allowing service groups, churches, schools and other nonprofits to split cash proceeds with poker rooms that run their popular Texas Hold ‘Em games and other fundraisers. The state issued more than 2,600 millionaire party licenses in 2016, with about $93.5 million in chips sold for games; charities reported net profits of $8.8 million. In 2011, revenue peaked at $197.5 million and profits at $19.2 million.
The Gaming Control Board opposes the legislation. It’s concerned over provisions that would limit its authority to deny licenses and to raise a daily per-event limit on chip sales from $15,000 to $20,000. The rules have resulted in industry lawsuits against the state, which in recent years has shut down some poker rooms and prosecuted individuals associated with them for skimming profits from charities.
Barrett said the measure addresses some of Snyder’s concerns. “We’ll see what he does,” he said.
