In gambling terms, Michigan is a progressive state that licenses most forms of gaming and wagering. There are tribal and commercial casinos, parimutuel betting, online lottery games, land-based and mobile sports betting, and online casino gaming and poker.
Michigan became the fifth US state to legalize and regulate online gaming when it passed the Lawful Internet Gaming Act in December 2019. Two months earlier, the state legislature passed the Lawful Sports Betting Act.
Michigan defines gambling as “accepting money or valuable thing contingent on uncertain event.”
All gambling is illegal unless expressly authorized and licensed by the state. Michigan law MCL 750.301 prohibits wagering money, goods, or services on the results of unknown races, contests, or games, which is a misdemeanor offense punishable by up to one year in jail and fines of not more than $1,000.
Offshore online casino sites targeting Michigan players can be said to be “black market operators” rather than “gray market” in the sense that the state provides a licensing framework that said operators have chosen to ignore.
The Michigan Gaming Control Board (MGCB) regulates commercial casinos, horse racing, internet gaming, internet sports betting, and fantasy sports.
The minimum gambling age in Michigan is 18 for horse race betting and lottery games and 21 for casino-style games and sports betting.
All gambling-related matters are covered by the Michigan Penal Code Chapter 750 Sec. 301 et seq. and the Michigan Gaming Control and Revenue Act (Michigan Compiled Laws, Chapter 432).
| Allowed | Notes | |
|---|---|---|
| Land-Based Gambling | Yes | Casinos, pari-mutuel, and retail sports betting |
| Online Gambling | Yes | Online/mobile casinos, sports betting, DFS, and poker are now legal |
| Lottery | Yes | - |
| Charitable Gaming | Yes | Bingo, poker, raffles, "Millionaire parties" |
| Minimum Gambling Age | 18 for pari-mutuel, bingo, and lotteries; 21 for casinos and sports betting | - |
Michigan Casinos
Michigan has 26 casinos, all but three of which are Native American.
The state is home to 12 federally recognized tribes. In the 1980s, the long-term economic difficulties experienced on tribal reservations led some Native American groups to establish large bingo operations and even Las Vegas-style casinos, which were illegal in the state at the time.
The tribes argued that they were not subject to state gaming laws as sovereign nations.
In two landmark 1987 rulings, the US Supreme Court essentially agreed, determining that Native American tribes had the right to organize gaming on their lands.
A year later, the federal Indian Gaming Regulatory Act (IGRA) codified those rights. Under IGRA, tribes are required to sign a compact with the state if they wish to offer casino-style rather than bingo-style games. In Michigan, these negotiations lasted years, but the first compact was signed in 1993.
Today, Michigan’s 23 tribal casinos offer slots and a wide range of table games, including blackjack, baccarat, roulette, craps, and poker. The biggest is the Soaring Eagle Casino and Resort in Mount Pleasant, owned by the Saginaw Chippewa Indian Tribe.
Under the terms of their compacts, the tribes shared $519.5 million in gaming revenue with the state in 2022, according to the American Gaming Association.
State gaming regulators have no jurisdiction over tribal land-based gaming operations, although they do oversee online gaming and sports betting operations. The casinos are regulated by the federal National Indian Gaming Commission (NIGC) and by the tribes’ own individual gaming commissions.
In 1996, Michigan voters approved the licensing of three commercial casinos in Detroit. The first, MotorCity, opened in 1999, followed by Greektown, now the Hollywood Casino at Greektown (2000), and MGM Grand Detroit (2007).
Michigan Online Gambling
Michigan is one of just six states that licenses and regulates all popular forms of online gambling: casino, poker, sports betting, lottery, and DFS.
The groundwork for the state’s liberalized online gambling market was laid by the lottery, which in 2014 became one of the early adopters of online ticket sales. This quickly grew into a large range of online games, including instant games and scratch offs.
Largely thanks to these offerings, Michigan has one of the biggest revenue-generating lotteries in the US by state population and has become the fastest growing US lottery over the past 10 years, contributing billions to the School Aid Fund.
In late 2019, Gov. Gretchen Whitmer signed Michigan’s Lawful Sports Betting Act and Lawful Internet Gaming Act into law, legalizing online sportsbooks, casinos, and poker rooms.
The state’s 12 federally recognized tribes are permitted to run online gaming and sports betting platforms by partnering with mobile sportsbooks. Meanwhile, Detroit’s three commercial casinos — MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown – are licensed to do so under similar terms.
The act created a unique legal situation in that the tribes agreed to apply for state online gaming licenses. Normally, tribal gaming operations are not regulated by the state.
Michigan Poker
Michigan has over 30 live poker rooms. These are mainly located at the state’s land-based casinos, some of which also run major poker festivals. But there are also charitable poker rooms that run games as non-profits. These are overseen by the charitable gaming division of the Michigan Lottery.
Online poker was legalized by 2019’s Lawful Internet Gaming Act. Several online poker sites currently serve the market, including PokerStars Michigan and WSOP.com.
State lawmakers passed a bill in early 2021 that allowed these sites to pool player liquidity with other states. That means Michigan online poker fans get to play against players from New Jersey, Delaware, and Nevada as part of the Multi-State Internet Gaming Agreement.
Michigan Sports Betting
Following the enactment of the Michigan Lawful Sports Betting Act in late 2019, the first sports bets were placed in March 2020 at Detroit’s three commercial casinos. The state rolled out online sports betting in January 2021.
The regulations allow players over 21 to bet on all major sports, including college games, and even some entertainment events, such as the Oscars.
There are currently 15 mobile sports betting apps serving the market.
Michigan Lottery
In 1972, Michigan voters approved a constitutional amendment enabling the establishment of a state lottery. In 1996, Michigan was one of five states to participate in a new multistate lottery draw called The Big Game, which later became Mega Millions.
2003 saw the introduction of Club Games, including Club Keno and pull-tabs, which became available in bars, restaurants, and other social venues.
In 2014, the Lottery launched its online gaming website, which included an array of virtual scratch-off games, as well as online ticket sales.
These online operations have been an unqualified success, driving huge growth for the lottery over the past decade. In 2022, lottery officials reported $4.9 billion in sales, with a staggering $1.25 billion contributing to the state education fund.
Michigan Parimutuel Betting
In 1933, Michigan’s Racing Act provided the first legal gambling opportunities in the state by authorizing and regulating parimutuel horse race betting.
However, this once-popular sport is in decline. Just one track remains in Michigan that offers live racing, Northville Downs, and its days are numbered. Facing stiff competition from Detroit-area casinos, the track was purchased by a housing developer in 2018, and it’s expected to close in 2024.
Greyhound racing is illegal in Michigan.
Michigan DFS
Michigan legalized daily fantasy sports in late 2019, along with online gaming and sports betting. The Fantasy Contests Consumer Protection Act provided the legal framework to regulate fantasy sports contests. It created a licensing regime, imposed fees on operators, and established protections for players.
Michigan Charitable Gaming
Michigan legalized charitable gaming in 1972 via the Michigan Bingo Act. This regulates “the conducting of bingo, millionaire parties, and certain other forms of gambling” by non-profit organizations. Qualified organizations can apply for one-time event gaming licenses or annual licenses. The latter allows for charitable bingo halls and poker rooms, although there are restrictions on the number of games that can be offered per week at these venues. Charitable gambling is regulated by the Charitable Gaming Division of the Michigan Lottery.
Michigan Gambling FAQ
Does Michigan have casinos?
Yes, Michigan has 26 casinos, each offering a wide range of slots and table games. All are Native American apart from three state-licensed venues in Detroit.
Does Michigan have sports betting?
Yes, Michigan began offering land-based sports betting in March 2020 and online sports betting from January 2021.
Can I gamble online in Michigan?
Yes, Michigan is one of a handful of states that offers online casino gaming and poker, as well as online sports betting, DFS, and lottery games.
Can I play poker in Michigan?
Yes. You can play live poker at most of the state’s 26 casinos and online at sites like PokerStars Michigan and WSOP.com.
Does Michigan have a lottery?
Yes, the Michigan Lottery offers interstate draw games, as well as multi-state games like Mega Millions and Powerball. The lottery also has online ticket sales and instant-win games.
Can I play slots in Michigan?
Yes, land-based slots are available at any one of the state’s 26 casinos. You can also play online slots legally as part of Michigan’s regulated online casino market.
Can I play table games in Michigan?
Yes, Michigan’s 26 land-based casinos each have a good selection of table games, including blackjack, roulette, craps, and more. Online casino gaming is also legal and regulated.
Full Text of Michigan's Internet Gaming Act
STATE OF MICHIGAN
100TH LEGISLATURE
REGULAR SESSION OF 2019
Introduced by Rep. Iden
ENROLLED HOUSE BILL No. 4311
AN ACT to create the lawful internet gaming act; to require licensure for persons to offer internet gaming; to impose requirements for internet gaming; to provide for the powers and duties of the Michigan gaming control board and other state and local officers and entities; to impose fees; to impose tax and other payment obligations on the conduct of licensed internet gaming; to create the internet gaming fund; to prohibit certain acts in relation to internet gaming and to prescribe penalties for those violations; to require the promulgation of rules; and to provide remedies.
The People of the State of Michigan enact:
Sec. 1. This act shall be known and may be cited as the “lawful internet gaming act”.
Sec. 2. The legislature finds and declares all of the following:
(a) Operating, conducting, and offering for play internet games over the internet involves gaming activity that already occurs throughout this state illegally.
(b) This act is consistent and complies with the unlawful internet gambling enforcement act of 2006, 31 USC 5361 to 5367, and specifically authorizes use of the internet to place, receive, or otherwise knowingly transmit a bet or wager if that use complies with this act and rules promulgated under this act.
(c) This act is consistent and complies with the state constitution of 1963 by ensuring that the internet may be used to place wagers only on games of skill or chance that may be lawfully played in this state and that internet gaming is only conducted by persons who are lawfully operating casinos in this state.
(d) In order to protect residents of this state who wager on games of chance or skill through the internet and to capture revenues generated from internet gaming, it is in the best interest of this state and its citizens to regulate this activity by establishing a secure, responsible, fair, and legal system of internet gaming.
(e) The use of the internet to sell lottery games, including digital representations of lottery games and entertaining displays for revealing outcomes, continues to be permitted as a method for selling state lottery games. This act is not intended to prohibit sales described in this subdivision.
Sec. 3. As used in this act:
(a) “Adjusted gross receipts” means gross receipts less a deduction equal to the amount of free play provided and wagered by authorized participants as an incentive to place or as a result of placing internet wagers under this act. The deduction under this subdivision is limited as follows:
(i) For years 1-3, a deduction not to exceed 10% of gross receipts.
(ii) For year 4, a deduction not to exceed 6% of gross receipts.
(iii) For year 5, a deduction not to exceed 4% of gross receipts.
(iv) For year 6 and each year thereafter, no deduction of free play is allowed. The January 1 following the year in which the internet gaming operator begins internet gaming operations is considered the first year of internet gaming for the purposes of this subdivision. An internet gaming operator may deduct up to 10% of gross receipts during any period of internet gaming operations before January 1 of the first year of internet gaming operations.
(b) “Affiliate” means a person that, directly or indirectly, through 1 or more intermediaries, controls or is controlled by an internet gaming operator.
(c) “Applicant” means a person that applies for a license or for registration under this act. As used in section 8, applicant includes an affiliate, director, or managerial employee of the applicant that performs the function of principal executive officer, principal operations officer, or principal accounting officer, or a person who holds more than 5% ownership interest in the applicant. As used in this subdivision, affiliate does not include a partnership, a joint venture, a co-shareholder of a corporation, a co-member of a limited liability company, or a co-partner in a limited liability partnership that has 5% or less ownership interest in the applicant and is not involved in the internet gaming operation.
(d) “Authorized participant” means an individual who has a valid internet wagering account with an internet gaming operator and is 21 years of age or older.
(e) “Board” means the Michigan gaming control board created under section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204.
(f) “Casino” means a building or buildings in which gaming is lawfully conducted under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, or in which class III gaming is lawfully conducted by an Indian tribe in this state under a facility license issued in accordance with a tribal gaming ordinance approved by the chair of the National Indian Gaming Commission.
(g) “Class II gaming” means that term as defined in 25 USC 2703.
(h) “Class III gaming” means that term as defined in 25 USC 2703.
(i) “Compact” means a tribal-state compact governing the conduct of gaming activities that is negotiated under the Indian gaming regulatory act, Public Law 100-497, 102 Stat 2467.
(j) “Fantasy contest” means a simulated game or contest with an entry fee that meets all of the following conditions:
(i) No fantasy contest team is composed of the entire roster of a real world sports team.
(ii) No fantasy contest team is composed entirely of individual athletes who are members of the same real world sports team.
(iii) Each prize and award or the value of all prizes and awards offered to winning fantasy contest players is made known to the fantasy contest players in advance of the fantasy contest.
(iv) Each winning outcome reflects the relative knowledge and skill of the fantasy contest players and are determined by the aggregated statistical results of the performance of multiple individual athletes selected by the fantasy contest player to form the fantasy contest team, whose individual performances in the fantasy contest directly correspond with the actual performance of those athletes in the athletic event in which those individual athletes participated.
(v) A winning outcome is not based on randomized or historical events, or on the score, point spread, or performance in an athletic event of a single real-world sports team, a single athlete, or any combination of real-world sports teams.
(vi) The fantasy contest does not constitute or involve and is not based on any of the following:
(A) Racing involving animals.
(B) A game or contest ordinarily offered by a horse track or casino for money, credit, or any representative of value, including any races, games, or contests involving horses, or that are played with cards or dice.
(C) A slot machine or other mechanical, electromechanical, or electric device, equipment, or machine, including computers and other cashless wagering systems.
(D) Any other game or device authorized by the board under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(k) “Fund” means the internet gaming fund created under section 16.
(l) “Gross receipts” means the total of all sums, including, but not limited to, valid or invalid checks, valid or invalid credit or debit card deposits, valid or invalid ACH deposits, currency, coupons, free play or promotional credits, redeemable credits, vouchers, entry fees assessed for tournaments or other contests, or instruments of monetary value whether collected or uncollected, in each case actually wagered by an authorized participant at or with an internet gaming operator on an internet game, less all of the following:
(i) Winnings.
(ii) Amounts returned to an authorized participant due to a game, platform, or system malfunction or because the internet wager must be voided due to concerns regarding integrity of the wager or game.
(iii) Uncollectible markers or successfully disputed credit or debit card charges that were previously included in the computation of gross receipts.
(m) “Indian lands” means that term as defined in 25 USC 2703.
(n) “Indian tribe” means that term as defined in 25 USC 2703 and any instrumentality, political subdivision, or other legal entity through which an Indian tribe operates its casino in this state.
(o) “Institutional investor” means a person that is any of the following:
(i) A retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees.
(ii) An employee benefit plan or pension fund that is subject to the employee retirement income security act of 1974, Public Law 93-406.
(iii) An investment company registered under the investment company act of 1940, 15 USC 80a-1 to 80a-64.
(iv) A collective investment trust organized by a bank under 12 CFR part 9.
(v) A closed end investment trust.
(vi) A chartered or licensed life insurance company or property and casualty insurance company.
(vii) A chartered or licensed financial institution.
(viii) An investment advisor registered under the investment advisers act of 1940, 15 USC 80b-1 to 80b-21.
(ix) Any other person that the board determines through rulemaking should be considered to be an institutional investor for reasons consistent with this act.
(p) “Internet” means the international computer network of interoperable packet-switched data networks, inclusive of such additional technological platforms as mobile, satellite, and other electronic distribution channels.
(q) “Internet game” means a game of skill or chance that is offered for play through the internet in which an individual wagers money or something of monetary value for the opportunity to win money or something of monetary value. Internet game includes gaming tournaments conducted via the internet in which individuals compete against one another in 1 or more of the games authorized by the board or in approved variations or composites as authorized by the board. Internet game does not include a social media internet game as that term is defined in section 310c of the Michigan penal code, 1931 PA 328, MCL 750.310c.
(r) “Internet gaming” means operating, conducting, or offering for play an internet game.
(s) “Internet gaming operator” means a person that is issued an internet gaming operator license from the board.
(t) “Internet gaming operator license” means a license issued by the board to a person to operate, conduct, or offer internet gaming.
(u) “Internet gaming platform” means an integrated system of hardware, software, applications, including mobile applications, and servers through which an internet gaming operator operates, conducts, or offers internet gaming.
(v) “Internet gaming platform provider” means an internet gaming supplier that contracts with an internet gaming operator to provide an internet gaming platform.
(w) “Internet gaming supplier” means a person that the board has identified under the rules promulgated by the board as requiring a license to provide internet gaming operators goods or services that directly affect wagering, play, and results of internet games offered under this act. Internet gaming supplier includes, but is not limited to, internet gaming platform providers.
(x) “Internet gaming supplier license” means a license issued by the board to an internet gaming supplier.
(y) “Internet wager” means money or something of monetary value risked on an internet game.
(z) “Internet wagering” means risking money or something of monetary value on an internet game.
(aa) “Internet wagering account” means an electronic ledger in which all of the following types of transactions relative to an authorized participant are recorded:
(i) Deposits and credits.
(ii) Withdrawals.
(iii) Internet wagers.
(iv) Monetary value of winnings.
(v) Service or other transaction-related charges authorized by the authorized participant, if any.
(vi) Adjustments to the account.
(bb) “Mobile application” means an application on a mobile phone or other device through which an individual is able to place an internet wager.
(cc) “Occupational license” means a license issued by the board to a person to perform an occupation that directly impacts the integrity of internet gaming and that the board has identified as requiring a license to perform the occupation.
(dd) “Person” means an individual, partnership, corporation, association, limited liability company, federally recognized Indian tribe, or other legal entity.
(ee) “Vendor” means a person that is not licensed under this act that supplies any goods or services to an internet gaming operator or internet gaming supplier.
(ff) “Winnings” means the total cash value of all property or sums including currency or instruments of monetary value paid to an authorized participant by an internet gaming operator as a direct result of a winning internet wager.
Sec. 4. (1) Internet gaming may be conducted only to the extent that it is conducted in accordance with this act.
(2) An internet wager received by an internet gaming operator or its internet gaming platform providers is considered to be gambling or gaming that is conducted in the internet gaming operator’s casino located in this state, regardless of the authorized participant’s location at the time the participant initiates or otherwise places the internet wager.
(3) A law that is inconsistent with this act does not apply to internet gaming as provided for by this act.
(4) This act does not apply to any of the following:
(a) Lottery games offered by the bureau of lottery under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47.
(b) Class II and Class III gaming conducted exclusively on Indian lands by an Indian tribe under a facility license issued in accordance with a tribal gaming ordinance approved by the chair of the National Indian Gaming Commission. For purposes of this act, gaming is conducted exclusively on Indian lands only if the individual who places the wager is physically present on Indian lands when the wager is initiated and the wager is received or otherwise made on equipment that is physically located on Indian lands, and the wager is initiated, received, or otherwise made in conformity with the safe harbor requirements described in 31 USC 5362(10)(C).
(c) A lawful fantasy contest.
(d) Any lawful internet sports betting.
(5) A person shall not provide or make available computers or other internet access devices in a place of public accommodation in this state, including a club or other association, to enable individuals to place internet wagers or play an internet game. The prohibition under this subsection does not apply to an internet gaming operator aggregating, providing, or making available computers or other internet access devices at its own casino.
(6) For purposes of this act, the intermediate routing of electronic data in connection with internet wagering, including routing across state lines, does not determine the location or locations in which the internet wager is initiated, received, or otherwise made.
(7) An internet gaming operator may offer internet gaming under a maximum of 2 separate brands, 1 for each of interactive poker and other casino style games. This subsection does not prohibit an internet gaming operator from using fewer than 2 brands or from using a single brand to offer any combination of interactive poker or other casino style games. Only an internet gaming operator or its internet gaming platform providers may process, accept, or solicit internet wagers under this act. All websites and corresponding applications used to offer internet gaming must clearly display the brand of the internet gaming operator or its affiliate. The internet gaming operator may also elect, in its sole discretion, to have the brand of each internet gaming platform that it utilizes be the name and logos or no more than 1 internet gaming platform provider if the internet gaming platform also clearly displays the internet gaming operator’s own trademarks and logos or those of an affiliate. The internet gaming operator is responsible for the conduct of its internet gaming platform provider.
Sec. 5. (1) The board has the powers and duties specified in this act and all other powers necessary to enable it to fully and effectively execute this act to administer, regulate, and enforce the system of internet gaming established under this act.
(2) The board has jurisdiction over every person licensed by the board and may take enforcement action against a person that is not licensed by the board that offers internet gaming in this state.
Sec. 6. (1) The board may issue an internet gaming operator license only to an applicant that is either of the following:
(a) A person that holds a casino license under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(b) An Indian tribe that lawfully conducts class III gaming in a casino located in this state under a facility license issued in accordance with a tribal gaming ordinance approved by the chair of the National Indian Gaming Commission.
(2) The board shall issue an internet gaming operator license to an applicant described in subsection (1) after receiving the application described in subsection (4) or (5), as applicable, and the application fee, if the board determines that the internet gaming proposed by the applicant complies with this act and the applicant is otherwise eligible and suitable. An applicant is eligible if it meets the requirements set forth in subsection (1)(a) or (b). Each casino licensee described in subsection (1)(a) and each Indian tribe described in subsection (1)(b) is eligible for not more than 1 internet gaming operator license. It is the burden of the applicant to establish by clear and convincing evidence its suitability as to character, reputation, integrity, business probity, and financial ability. The application or enforcement of this subsection by the board must not be arbitrary, capricious, or contradictory to the express provisions of this act. In evaluating the eligibility and suitability of an applicant under the standards provided in this act, the board shall establish and apply the standards to each applicant in a consistent and uniform manner. In determining whether to grant an internet gaming operator license to an applicant, the board may request from the applicant and consider as a factor in the determination any or all of the following information:
(a) Whether the applicant has adequate capitalization and the financial ability and the means to develop, construct, operate, and maintain the proposed internet gaming platform and to offer and conduct internet gaming in accordance with this act and the rules promulgated by the board.
(b) Whether the applicant has the financial ability to purchase and maintain adequate liability and casualty insurance and to provide an adequate surety bond.
(c) Whether the applicant has adequate capitalization and the financial ability to responsibly pay its secured and unsecured debts in accordance with its financing agreements and other contractual obligations.
(d) Whether the applicant has a history of material noncompliance with casino or casino-related licensing requirements or compacts with this state or any other jurisdiction, where the noncompliance resulted in enforcement action by the person with jurisdiction over the applicant.
(e) Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pleaded guilty or nolo contendere to, forfeited bail concerning, or had expunged any criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations, regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise. The board may consider mitigating factors, and, for an applicant described in subsection (1)(b), shall give deference to whether the applicant has otherwise met the requirements of the applicant’s gaming compact for licensure, as applicable.
(f) Whether the applicant has filed, or had filed against it, a proceeding for bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt.
(g) Whether the applicant has a history of material noncompliance with any regulatory requirements in this state or any other jurisdiction where the noncompliance resulted in an enforcement action by the regulatory agency with jurisdiction over the applicant.
(h) Whether at the time of application the applicant is a defendant in litigation involving the integrity of its business practices.
(3) An internet gaming operator license issued under this act is valid for the 5-year period after the date of issuance and, if the board determines that the internet gaming operator continues to meet the eligibility and suitability standards under this act, is renewable for additional 5-year periods.
(4) A person described in subsection (1)(a) may apply to the board for an internet gaming operator license to offer internet gaming as provided in this act. The application must be made on forms provided by the board and include the information required by the board.
(5) A person described in subsection (1)(b) may apply to the board for an internet gaming operator license to offer internet gaming as provided in this act. The application must be made on forms provided by the board that require only the following information:
(a) The name and location of any of the applicant’s casinos.
(b) The tribal law, charter, or any other organizational document of the applicant and other governing documents under which the applicant operates any of its casinos.
(c) Detailed information about the primary management officials of the applicant’s casinos who will have management responsibility for the applicant’s internet gaming operations. As used in this subdivision, “primary management official” does not include an elected or appointed representative of the applicant unless the representative is also a full-time employee of the applicant’s internet gaming operations.
(d) The current facility license for the applicant’s casinos.
(e) The applicant’s current tribal gaming ordinance.
(f) The gaming history and experience of the applicant in the United States and other jurisdictions.
(g) Financial information, including copies of the last independent audit and management letter submitted by the applicant to the National Indian Gaming Commission under 25 USC 2710(b)(2)(C) and (D) and 25 CFR parts 271.12 and 271.13.
(h) The total number of gaming positions, including, but not limited to, electronic gaming devices and table games, at each of the applicant’s casinos.
(6) An initial application for an internet gaming operator license must be accompanied by an application fee of $50,000.00. The rules promulgated under section 10 may include provisions for the refund of an application fee, or the portion of an application fee that has not been expended by the board in processing the application, and the circumstances under which the fee will be refunded. The board may assess additional fees for the costs related to the licensure investigation.
(7) The board shall keep all information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the board in the course of its review or investigation of an application for an internet gaming operator license or renewal of an internet gaming operator license confidential. The materials described in this subsection are exempt from disclosure under section 13 of the freedom of information act, 1976 PA 442, MCL 15.243.
(8) An application under this section must be submitted and considered in accordance with this act and any rules promulgated under this act.
(9) An internet gaming operator shall pay a license fee of $100,000.00 to the board at the time the initial internet gaming operator license is issued and $50,000.00 each year after the initial license is issued.
(10) The board shall deposit all application and license fees paid under this section into the fund.
(11) An institutional investor that holds for investment purposes only less than 25% of the equity of an applicant under this section is exempt from the licensure requirements of this act.
(12) An internet gaming operator shall not offer internet gaming until all of the following criteria are satisfied:
(a) The board has issued a license to at least 1 person under section 6(1)(a) and 1 person under section 6(1)(b).
(b) Either of the following is satisfied, whichever is first:
(i) The governor agrees to add online versions of authorized class III gaming games, including authorizing internet wagering on games described in this subparagraph, under the tribal-state compact for any tribe in this state whose tribal-state gaming compact requires agreement by the governor for the addition of each new class III gaming game if those tribes request, within 60 days after the effective date of this act, an agreement under section 3(B) of the tribe’s tribal-state gaming compact.
(ii) One hundred fifty days have elapsed after the effective date of this act.
Sec. 7. (1) The board shall condition the issuance, maintenance, and renewal of an internet gaming operator license to a person described in section 6(1)(b) on the person’s compliance with all of the following conditions:
(a) The person complies with this act, rules promulgated by the board, and minimum internal controls pertaining to all of the following:
(i) The types of and rules for playing internet games that internet gaming operators may offer under this act.
(ii) Technical standards, procedures, and requirements for the acceptance, by the person, of internet wagers initiated or otherwise made by individuals located in this state who are not physically present on the person’s Indian lands in this state at the time the internet wager is initiated or otherwise made.
(iii) The requirements set forth in section 11.
(b) The person adopts and maintains technical standards for internet gaming platforms, systems, and software that are consistent with the standards adopted by the board under section 10.
(c) The person maintains 1 or more mechanisms on the internet gaming platform that are designed to reasonably verify that an authorized participant is 21 years of age or older and that internet wagering is limited to transactions that are initiated and received or otherwise made by an authorized participant located in this state.
(d) The person adopts and maintains responsible gaming measures consistent with those described in section 12.
(e) The person continues to maintain and operate in this state a casino offering class III gaming and the casino contains not less than 50% of the gaming positions that were in place on the effective date of this act.
(f) The person, within the time period described in section 14(3), makes payments, to be allocated as outlined in section 15a, based on a graduated percentage schedule on the adjusted gross receipts received each calendar year by the person from all internet gaming it conducts under this act as an internet gaming operator, as set forth below:
(i) For adjusted gross receipts less than $4,000,000.00, 20%.
(ii) For adjusted gross receipts of $4,000,000.00 or more but less than $8,000,000.00, 22%.
(iii) For adjusted gross receipts of $8,000,000.00 or more but less than $10,000,000.00, 24%.
(iv) For adjusted gross receipts of $10,000,000.00 or more but less than $12,000,000.00, 26%.
(v) For adjusted gross receipts of $12,000,000.00 or more, 28%.
(g) The person agrees to provide and timely provides, on written request of the board, books and records directly related to its internet gaming operations for the purpose of permitting the board to verify the calculation of the payments under subdivision (f).
(h) The person provides a waiver of sovereign immunity to the board for the sole and limited purpose of consenting to both of the following:
(i) The jurisdiction of the board to the extent necessary and for the limited purpose of providing a mechanism for the board to do all of the following:
(A) Issue, renew, and revoke the person’s internet gaming license.
(B) Enforce the payment obligations set forth in this section and section 14.
(C) Regulate the person under and enforce sections 10(a), (b), (d) to (g), 11, 12(4) and (5), 13, 19, and 21.
(D) Inspect the person’s internet gaming operation and records to verify that the person is conducting its internet gaming operation in conformity with this act.
(E) Assess fines or monetary penalties for violations referred to in sub-subparagraph (C).
(F) Enforce the payment of internet gaming license fees described in section 6(9).
(ii) The jurisdiction of the courts of this state, and expressly waiving the exhaustion of tribal remedies, with the circuit court for Ingham County having exclusive jurisdiction, and any courts to which appeals from that court may be taken, to permit this state to enforce administrative orders of the board, the person’s obligation to make payments required under subdivision (f), and collection of any judgment. Any monetary award under this subparagraph is deemed limited recourse obligations of the person and does not impair any trust or restricted income or assets of the person.
(2) This state, acting through the governor, at the request of any Indian tribe, is authorized to negotiate and conclude and execute any amendments to an Indian tribe’s compact necessary to effectuate internet gaming by the Indian tribe under this act and to ensure internet gaming conducted by the Indian tribe is in compliance with this act and any applicable federal laws. If the governor fails to enter into negotiations with the Indian tribe, or fails to negotiate in good faith with respect to the request, this state waives its sovereign immunity to permit the Indian tribe to initiate an action against the governor in his or her official capacity in either state court or in federal court and obtain those remedies as authorized in 25 USC 2710(d)(7).
(3) Notwithstanding anything in this act to the contrary, this act only regulates internet gaming as provided in this act and does not extend to the board, or any other agency of this state, any jurisdiction or regulatory authority over any aspect of any gaming operations of an Indian tribe described in section 4(4)(b) beyond those rights granted to this state under the compact with the Indian tribe.
Sec. 8. (1) The board may issue an internet gaming supplier license to an internet gaming supplier. A person that is not licensed under this section shall not provide goods, software, or services as an internet gaming supplier to an internet gaming operator.
(2) On application by an interested person, the board may issue a provisional internet gaming supplier license to an applicant for an internet gaming supplier license. A provisional license issued under this subsection allows the applicant for the internet gaming supplier license to conduct business with an internet gaming operator before the internet gaming supplier license is issued to the applicant. A provisional license issued under this subsection expires on the date provided by the board. The board shall not issue a provisional internet gaming supplier license to an internet gaming platform provider under this subsection until board rules as described in section 10(b) are in effect.
(3) An internet gaming supplier license issued under subsection (1) is valid for the 5-year period after the date of issuance. An internet gaming supplier license is renewable after the initial 5-year period for additional 5-year periods if the board determines that the internet gaming supplier continues to meet the eligibility and suitability standards under this act.
(4) A person may apply to the board for an internet gaming supplier license as provided in this act and the rules promulgated under this act.
(5) Except as otherwise provided in this section, an application under this section must be made on forms provided by the board and include the information required by the board.
(6) An application under this section must be accompanied by a nonrefundable application fee in an amount to be determined by the board, not to exceed $5,000.00. The board may assess additional fees for the cost related to the licensure investigation.
(7) The board shall keep all information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the board in the course of its review or investigation of an application for an internet gaming supplier license or renewal of an internet gaming supplier license confidential. The materials described in this subsection are exempt from disclosure under section 13 of the freedom of information act, 1976 PA 442, MCL 15.243.
(8) An internet gaming supplier shall pay a license fee of $5,000.00 to the board at the time an initial internet gaming supplier license is issued to the internet gaming supplier and $2,500.00 each year after the initial license is issued.
(9) The board shall deposit all application and license fees paid under this section into the fund.
(10) An institutional investor that holds for investment purposes only less than 25% of the equity of an applicant under this section is exempt from the licensure requirements of this act.
Sec. 9. (1) The board has jurisdiction over and shall supervise all internet gaming operations governed by this act. The board may do anything necessary or desirable to effectuate this act, including, but not limited to, all of the following:
(a) Develop qualifications, standards, and procedures for approval and licensure by the board of internet gaming operators and internet gaming suppliers.
(b) Decide promptly and in reasonable order all license applications and approve, deny, suspend, revoke, restrict, or refuse to renew internet gaming operator licenses and internet gaming supplier licenses. A party aggrieved by an action of the board denying, suspending, revoking, restricting, or refusing to renew a license may request a contested case hearing before the board under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. A request for hearing under this subdivision must be made to the board in writing within 21 days after service of notice of the action by the board.
(c) Conduct all hearings pertaining to violations of this act or rules promulgated under this act.
(d) Provide for the establishment and collection of all applicable license fees, taxes, and payments imposed by this act and the rules promulgated under this act and the deposit of the applicable fees, taxes, and payments into the fund.
(e) Develop and enforce testing and auditing requirements for internet gaming platforms, internet wagering, and internet wagering accounts.
(f) Develop and enforce requirements for responsible gaming and player protection, including privacy and confidentiality standards and duties.
(g) Develop and enforce requirements for accepting internet wagers.
(h) Adopt by rule a code of conduct governing board employees that ensures, to the maximum extent possible, that persons subject to this act avoid situations, relationships, or associations that may represent or lead to an actual or perceived conflict of interest.
(i) Develop and administer civil fines for internet gaming operators and internet gaming suppliers that violate this act or the rules promulgated under this act.
(j) Audit and inspect books and records relevant to internet gaming operations, internet wagers, internet wagering accounts, internet games, or internet gaming platforms, including, but not limited to, the books and records regarding financing and accounting materials held by or in the custody of an internet gaming operator or internet gaming supplier.
(k) Acquire by lease or by purchase personal property, including, but not limited to, any of the following:
(i) Computer hardware.
(ii) Mechanical, electronic, and online equipment and terminals.
(iii) Intangible property, including, but not limited to, computer programs, software, and systems.
(2) The board may investigate and may issue cease and desist orders and obtain injunctive relief against a person that is not licensed by the board that offers internet gaming in this state.
(3) The board shall keep all information, records, interviews, reports, statements, memoranda, and other data supplied to or used by the board in the course of any investigation of a person licensed under this act confidential. The materials described in this subsection are exempt from disclosure under section 13 of the freedom of information act, 1976 PA 442, MCL 15.243.
Sec. 10. The board shall promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The rules may include any necessary and proper to govern internet gaming, including, but not limited to, any of the following:
(a) The types of internet games to be offered, which must include, but need not be limited to, poker, blackjack, cards, slots, and other games typically offered at a casino, but does not include pick numbers or other lottery games typically offered by the bureau of lottery under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47.
(b) The qualifications, standards, and procedures for approval and licensure by the board for internet gaming operators and internet gaming suppliers consistent with this act.
(c) Requirements to ensure responsible gaming.
(d) Technical and financial standards for internet wagering, internet wagering accounts, and internet gaming platforms, systems, and software or other electronic components integral to offering internet gaming.
(e) Procedures for a contested case hearing under this act consistent with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(f) Requirements for occupational licensing.
(g) Requirements for vendors and vendor registration.
Sec. 11. (1) An internet gaming operator shall provide, or shall require its internet gaming platform provider to provide, 1 or more mechanisms on the internet gaming platform that the internet gaming operator uses that are designed to reasonably verify that an authorized participant is 21 years of age or older and that internet wagering is limited to transactions that are initiated and received or otherwise made by an authorized participant located in this state.
(2) An individual who wishes to place an internet wager under this act must satisfy the verification requirements under subsection (1) before the individual may establish an internet wagering account or make an internet wager on an internet game offered by the internet gaming operator.
(3) An internet gaming operator shall include, or shall require its internet gaming platform provider to include, mechanisms on its internet gaming platform that are designed to detect and prevent the unauthorized use of internet wagering accounts and to detect and prevent fraud, money laundering, and collusion.
(4) An internet gaming operator, or its internet gaming platform provider, shall not knowingly authorize any of the following individuals to establish an internet wagering account or knowingly allow them to wager on internet games offered by the internet gaming operator, except if required and authorized by the board for testing purposes or to otherwise fulfill the purposes of this act:
(a) An individual who is less than 21 years old.
(b) An individual whose name appears in the board’s responsible gaming database.
(5) An internet gaming operator shall display, or shall require its internet gaming platform provider to display, in a clear, conspicuous, and accessible manner, evidence of the internet gaming operator’s internet gaming license issued under this act.
Sec. 12. (1) The board may develop responsible gaming measures, including a statewide responsible gaming database identifying individuals who are prohibited from establishing an internet wagering account or participating in internet gaming offered by an internet gaming operator. The executive director of the board may place an individual’s name in the responsible gaming database if any of the following apply:
(a) The individual has been convicted in any jurisdiction of a felony, a crime of moral turpitude, or a crime involving gaming.
(b) The individual has violated this act or another gaming-related law.
(c) The individual has performed an act or has a notorious or unsavory reputation such that the individual’s participation in internet gaming under this act would adversely affect public confidence and trust in internet gaming.
(d) The individual’s name is on a valid and current exclusion list maintained by this state or another jurisdiction in the United States.
(2) The board may promulgate rules for the establishment and maintenance of the responsible gaming database.
(3) An internet gaming operator, in a format specified by the board, may provide the board with names of individuals to be included in the responsible gaming database.
(4) An internet gaming operator or its internet gaming platform provider shall offer responsible gambling services and technical controls to authorized participants, consisting of both temporary and permanent self-exclusion for all internet games offered and the ability for authorized participants to establish their own periodic deposit and internet wagering limits and maximum playing times.
(5) An authorized participant may voluntarily prohibit himself or herself from establishing an internet wagering account with an internet gaming operator. The board may incorporate the voluntary self-exclusion list into the responsible gaming database and maintain both the self-exclusion list and the responsible gaming database in a confidential manner.
(6) The self-exclusion list and responsible gaming database established under this section and any information and records used by the board in the administration of the self-exclusion list and responsible gaming database are exempt from disclosure under section 13 of the freedom of information act, 1976 PA 442, MCL 15.243.
Sec. 13. (1) A person shall not do any of the following:
(a) Offer internet gaming for play in this state if the person is not an internet gaming operator unless this act does not apply to the internet gaming under section 4(4).
(b) Knowingly make a false statement on an application for a license to be issued under this act.
(c) Knowingly provide false testimony to the board or an authorized representative of the board while under oath.
(d) Willfully fail to report, pay, or truthfully account for any license fee, tax, or payment imposed by this act, or willfully attempt in any way to evade or defeat the license fee, tax, or payment.
(e) Knowingly, with the intent to cheat, alter, tamper with, or manipulate any game, platform, equipment, software, hardware, devices, or supplies used to conduct internet gaming, in order to alter the odds or the payout, or to disable the game, platform, equipment, software, hardware, devices, or supplies from operating in the manner authorized by the board, or knowingly, with the intent to cheat, offer or allow to be offered any game, platform, equipment, software, hardware, devices, or supplies that have been altered, tampered with, or manipulated in such a manner.
(f) Open, maintain, or use in any way an internet wagering account or make or attempt to make an internet wager if the individual is under the age of 21, or knowingly allow an individual under the age of 21 to open, maintain, or use in any way an internet wagering account or make or attempt to make an internet wager.
(g) Claim, collect, or take, or attempt to claim, collect, or take, money or anything of value from an internet gaming operator with the intent to defraud, or to claim, collect, or take an amount greater than the amount won.
(2) A person that violates subsection (1)(a) is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $100,000.00, or both.
(3) A person that violates subsection (1)(b) to (g) is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a $10,000.00 fine.
(4) The board may consider a person’s violation of subsection (1) in determining whether to issue a license under this act to the person.
(5) The attorney general or a county prosecuting attorney may bring an action to prosecute a violation of subsection (1) in the county in which the violation occurred or in Ingham County.
Sec. 14. (1) Except for an internet gaming operator that is an Indian tribe, an internet gaming operator is subject to a graduated tax on the adjusted gross receipts received each calendar year by the internet gaming operator from all internet gaming it conducts under this act as set forth below:
(a) For adjusted gross receipts less than $4,000,000.00, a tax of 20%.
(b) For adjusted gross receipts of $4,000,000.00 or more but less than $8,000,000.00, a tax of 22%.
(c) For adjusted gross receipts of $8,000,000.00 or more but less than $10,000,000.00, a tax of 24%.
(d) For adjusted gross receipts of $10,000,000.00 or more but less than $12,000,000.00, a tax of 26%.
(e) For adjusted gross receipts of $12,000,000.00 or more, 28%.
(2) An internet gaming operator that is an Indian tribe is subject to the payment requirements under section 7(1)(f).
(3) An internet gaming operator shall pay the tax or payment, as applicable, under subsection (1) or (2) on a monthly basis. The payment for each monthly accounting period is due on the tenth day of the following month.
(4) Except as provided in this act and section 12(17) of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, an internet gaming operator is not subject to any excise tax, license tax, privilege tax, occupation tax, or other tax, payment, or fee imposed exclusively on an internet gaming operator or internet gaming operators by this state or any political subdivision of this state, except as provided in this act. This subsection does not impair the contractual rights under an existing development agreement between a city and an internet gaming operator that holds a casino license under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(5) In addition to payment of the tax and other fees as provided in this act, and to any payment required pursuant to an existing development agreement described in subsection (4), if a city has imposed a municipal services fee equal to 1.25% on a casino licensee, the city shall charge a 1.25% fee on the adjusted gross receipts of an internet gaming operator that holds a casino license under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, whose casino is in that city.
Sec. 15. (1) The tax imposed under section 14 must be allocated as follows:
(a) Thirty percent to the city in which the internet gaming operator licensee’s casino is located, for use in connection with the following:
(i) The hiring, training, and deployment of street patrol officers in that city.
(ii) Neighborhood development programs designed to create jobs in that city with a focus on blighted neighborhoods.
(iii) Public safety programs such as emergency medical services, fire department programs, and street lighting in that city.
(iv) Anti-gang and youth development programs in that city.
(v) Other programs that are designed to contribute to the improvement of the quality of life in that city.
(vi) Relief to the taxpayers of the city from 1 or more taxes or fees imposed by the city.
(vii) The costs of capital improvements in that city.
(viii) Road repairs and improvements in that city.
(b) Sixty-five percent to this state to be deposited in the fund.
(c) Five percent to the Michigan agriculture equine industry development fund created under section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320. However, if the 5% allocated under this subdivision to the Michigan agriculture equine industry development fund created under section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320, exceeds $3,000,000.00 in a fiscal year, the amount in excess of $3,000,000.00 must be allocated and deposited in the fund created under section 16.
(2) By September 30, 2020 and each September 30 after that date, if the combined amount of money received in the preceding city fiscal year by the city in which the internet gaming operator’s casino is located from money allocated under subsection (1)(a), from the wagering tax allocated under section 12 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, from the wagering tax allocated under section 15 of the lawful sports betting act, and all payments received under existing development agreements with internet gaming operators, is less than $183,000,000.00, the board shall distribute from the fund to the city in which the internet gaming operator’s casino is located an amount equal to the difference between $183,000,000.00 and the combined amount of money the city in which the internet gaming operator’s casino is located received in the preceding fiscal year from money allocated under subsection (1)(a), from the wagering tax allocated under section 12 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, from the wagering tax allocated under section 15 of the lawful sports betting act, and all payments received by the city under existing development agreements with internet gaming operators. The calculations set forth in this subsection must not include any payments made under section 14(5) or any payments made under section 13(1) of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.213, or any payments made under section 14(5) of the lawful sports betting act. However, the total amount the city in which the internet gaming operator’s casino is located receives for the preceding fiscal year under subsection (1)(a) and this subsection must not be more than 55% of the total received from the tax imposed under section 14 in the state fiscal year.
Sec. 15a. Any payments under section 7(1)(f) must be allocated as follows:
(a) Twenty percent to the governing body of the jurisdiction where the internet gaming operator’s casino is located for its use in connection with the provision of governmental services.
(b) Seventy percent to this state to be deposited in the fund.
(c) Ten percent to the Michigan strategic fund created under section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005.
Sec. 16. (1) The internet gaming fund is created in the state treasury.
(2) The state treasurer may receive money or other assets required to be paid into the fund under this act or from any other source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.
(3) The board is the administrator of the fund for auditing purposes.
(4) Except as otherwise provided in section 15(2), the board shall expend money from the fund, on appropriation, for all of the following:
(a) The board’s costs of regulating and enforcing internet gaming under this act.
(b) After the expenditure under subdivision (a), each year, $500,000.00 to the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.
(c) After the expenditures under subdivisions (a) and (b), each year, $2,000,000.00 to the first responder presumed coverage fund created in section 405 of the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.405.
(d) All money remaining after expenditures under subdivisions (a), (b), and (c), to be deposited into the state school aid fund established under section 11 of article IX of the state constitution of 1963.
Sec. 17. This act does not authorize the construction or operation of a casino that was not constructed or operating before the effective date of this act.
Sec. 19. (1) An applicant must submit with its application, on forms provided by the board, a photograph and 2 sets of fingerprints for each individual that is subject to licensure.
(2) An applicant and licensee shall consent to inspections, criminal history background checks, searches and seizures, and the providing of handwriting exemplars, fingerprints, photographs, and information as authorized in this act and in rules promulgated by the board.
(3) The board may collect fingerprints from, and conduct criminal history investigations on, a board employee or prospective board employee.
(4) The board may conduct criminal history investigations on applicants, licensees, board employees, prospective board employees, and other persons, including board agents and contractors working for or on behalf of the board, for the purpose of carrying out its statutory powers and responsibilities under this act and rules promulgated under this act.
(5) For the purpose of carrying out its statutory powers and responsibilities, the board shall require the persons identified in subsection (4) to submit his or her fingerprints for review by the department of state police and the Federal Bureau of Investigation for the criminal history record check, in the form and manner required by the department of state police and the Federal Bureau of Investigation to obtain any information currently or subsequently contained in the files of the department of state police or the Federal Bureau of Investigation. The department of state police shall provide all criminal history record checks requested by the board under this act and rules promulgated under this act. The department of state police may charge the board a fee for a criminal history record check required under this section. The board shall not share the criminal history record check with a private entity.
(6) The department of state police shall store and retain all fingerprints submitted under this act in an automated fingerprint identification system that provides for an automatic notification if new criminal arrest information matches fingerprints previously submitted under this act. Upon the notification described in this subsection, the department of state police shall immediately notify the board. The fingerprints retained under this act may be searched against future fingerprint submissions, and any relevant results will be shared with the board.
(7) If the department of state police is able to participate in the Federal Bureau of Investigation’s automatic notification system, all fingerprints submitted to the Federal Bureau of Investigation may be stored and retained by the Federal Bureau of Investigation in its automatic notification system. The automatic notification system provides for automatic notification if new criminal arrest information matches fingerprints previously submitted to the Federal Bureau of Investigation under this act. If the department of state police receives a notification from the Federal Bureau of Investigation under this act, the department of state police shall immediately notify the board.
Sec. 21. (1) An internet gaming operator shall provide to the board a monthly report regarding its internet gaming operations under this act to include all of the following by game category, including, but not limited to, internet slots, poker, and table games:
(a) Total amount of wagers received.
(b) Payouts.
(c) Free play redeemed.
(d) Deductions.
(e) Adjusted gross receipts.
(2) The board shall provide the report under subsection (1) to the department of treasury, the state budget office on request, and the house and senate fiscal agencies on request. In addition, the department of treasury and the state budget office may request additional information from the internet gaming operator, that is directly related to, and for the purposes of verification of, the financial data provided under subsection (1)(a) and (b), which must be provided within 60 days after the request. Any information provided under this section is confidential and proprietary and is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 22. This act does not prohibit selling internet lottery games, including, but not limited to, digital representations of lottery games.
This act is ordered to take immediate effect.
Michigan Compiled Statutes
Casino Gambling Regulated
432.201 Short title.
This act shall be known and may be cited as the Michigan Gaming Control and Revenue Act.
432.203 Casino gaming authorized.
(1) Casino gaming is authorized to the extent that it is conducted in accordance with this act.
(2) Except as provided in subsection (5), this act does not apply to any of the following:
(a) The pari-mutuel system of wagering used or intended to be used in connection with race meetings as authorized under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.
(b) Lottery games authorized under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47.
(c) Bingo or millionaire parties or any other activities authorized under the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.120.
(d) Gambling on Native American land and land held in trust by the United States for a federally recognized Indian tribe on which gaming may be conducted under the Indian gaming regulatory act, Public Law 100-497, 102 Stat. 2467.
(e) Recreational card playing, bowling, redemption games, and occasional promotional activities under sections 303a, 310a, 310b, 372, and 375 of the Michigan penal code, 1931 PA 328, MCL 750.303a, 750.310a, 750.310b, 750.372, and 750.375.
(3) Any other law that is inconsistent with this act does not apply to casino gaming as provided for by this act.
(4) This act and rules promulgated by the board shall apply to all persons who are licensed or otherwise participate in gaming under this act.
(5) If a federal court or agency rules or federal legislation is enacted that allows a state to regulate gambling on Native American land or land held in trust by the United States for a federally recognized Indian tribe, the legislature shall enact legislation creating a new act consistent with this act to regulate casinos that are operated on Native American land or land held in trust by the United States for a federally recognized Indian tribe. The legislation shall be passed by a simple majority of members elected to and serving in each house.
432.218 Prohibited conduct; violation as felony; violation as misdemeanor; penalties; presumption; venue.
Sec. 18.
(1) A person is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $100,000.00, or both, and shall be barred from receiving or maintaining a [gaming] license for doing any of the following:
(a) Conducting a gambling operation where wagering is used or to be used without a license issued by the board.
(b) Conducting a gambling operation where wagering is permitted other than in the manner specified in section 9.
(c) Knowingly making a false statement on an application for any license provided in this act or a written document provided under oath in support of a proposal for a development agreement.
(d) Knowingly providing false testimony to the board or its authorized representative while under oath.
(e) Willfully failing to report, pay, or truthfully account for any license fee or tax imposed by this act or willfully attempt in any way to evade or defeat the license fee, tax, or payment. A person convicted under this subsection shall also be subject to a penalty of 3 times the amount of the licensee fee or tax not paid.
(f) Making a political contribution in violation of section 7b of this act.
(2) A person commits a felony punishable by imprisonment for not more than 10 years or a fine of not more than $100,000.00, or both, and, in addition, shall be barred for life from a gambling operation under the jurisdiction of the board if the person does any of the following:
(a) Offers, promises, or gives anything of value or benefit to a person who is connected with a licensee or affiliated company, including, but not limited to, an officer or employee of a casino licensee or holder of an occupational license pursuant to an agreement or arrangement or with the intent that the offer, promise, or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a gambling game, or to influence official action of a member of the board.
(b) Solicits or knowingly accepts or receives a promise of anything of value or benefit while the person is employed by or connected with a licensee, including, but not limited to, an officer or employee of a casino licensee or holder of an occupational license, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a gambling game.
(c) Offers, promises, or gives anything of value or benefit to a member, employee, or agent of the board or an official of any state or local agency or governmental body with the intent that the offer, promise, or thing of value or benefit will influence the official action of the person to whom the offer, promise, or gift was made pertaining to a city development agreement, or administrating, licensing, regulating, or enforcing this act.
(d) Solicits or knowingly accepts or receives a promise of anything of value or benefit while the person is a member, employee, or agent of the board, or an official of any state or local agency or governmental body, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the official action of the member, employee, or agent of the board or official of the state or local governmental body pertaining to a city development agreement, or enforcing this act.
(e) Except as otherwise provided by the board, uses or possesses with the intent to use a device to assist in doing any of the following:
(i) Projecting the outcome of a gambling game.
(ii) Keeping track of the cards played in a gambling game.
(iii) Analyzing the probability of the occurrence of an event relating to a gambling game.
(iv) Analyzing the strategy for playing or betting to be used in a gambling game.
(f) Cheats at a gambling game.
(g) Manufactures, sells, or distributes cards, chips, dice, a game, or a device that is intended to be used to violate this act.
(h) Alters or misrepresents the outcome of a gambling game on which wagers have been made after the outcome is determined but before it is revealed to the players.
(i) Places a bet after acquiring knowledge, not available to all players, of the outcome of the gambling game that is the subject of the bet or to aid a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome.
(j) Claims, collects, takes, or attempts to claim, collect, or take money or anything of value in or from the gambling games, with intent to defraud, without having made a wager contingent on winning a gambling game, or claims, collects, or takes an amount of money or thing of value of greater value than the amount won.
(k) Uses counterfeit chips or tokens in a gambling game.
(l) Possesses a key or device designed for the purpose of opening, entering, or affecting the operation of a gambling game, drop box, or an electronic or mechanical device connected with the gambling game or for removing coins, tokens, chips, or other contents of a gambling game. This subdivision does not apply to a gambling licensee or employee of a gambling licensee acting in furtherance of the employee's employment.
(3) A person, or an affiliate of a person, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year in a county jail or a $10,000.00 fine, or both, for doing any of the following:
(a) Knowingly making a wager if the person is under 21 years of age or permitting a person under 21 years to make a wager.
(b) Willfully failing to appear before or provide an item to the board at the time and place specified in a subpoena or summons issued by the board or executive director.
(c) Willfully refusing, without just cause, to testify or provide items in answer to a subpoena, subpoena duces tecum or summons issued by the board or executive director.
(d) Conducting or permitting a person who is not licensed pursuant to this act to conduct activities required to be licensed under the casino, occupational, and suppliers licensee provisions in this act or in rules promulgated by the board.
(e) Knowingly violates or aids or abets in the violation of the provisions of section 7b of this act.
(f) Leasing, pledging, borrowing, or loaning money against a casino, supplier, or occupational license.
(4) The possession of more than 1 of the devices described in subsection (2)(e) permits a rebuttable presumption that the possessor intended to use the devices for cheating.
(5) An action to prosecute any crime described in this section may, in the discretion of the attorney general or county prosecuting attorney, be tried in the county in which the crime occurred or in the county of Ingham.
Criminal Laws
600.2939 Gaming; action by loser; oath of parties; prosecution according to common law; forfeiture; limitation; securities; lands enuring of benefit.
(1) In any suit brought by the person losing any money or goods, against the person receiving the same, when it appears from the complaint that the money or goods came to the hands of the defendant by gaming, if the plaintiff makes oath before the court in which such suit is pending, that the money or goods were lost by gaming with the defendant as alleged in the complaint, judgment shall be rendered that the plaintiff recovered damages to the amount of the said money or goods, unless the defendant makes oath that he did not obtain the same, or any part thereof by gaming with the plaintiff; and if he so discharges himself, he shall recover of the plaintiff his costs; but the plaintiff may at his election, maintain and prosecute his action according to the usual course of proceedings in such actions at common law.
(2) Every person who wins or loses, at any time or sitting, by gaming or betting on the hands or sides of such as are gaming, any money or goods, to the value of $5.00 or more, whether the same is paid over or delivered, or not, shall forfeit and pay 3 times the value of such money or goods if the action therefor is commenced within 6 months after the committing of the offense.
(3) All notes, bills, bonds, mortgages, or other securities or conveyances whatever, in which the whole or any part of the consideration, shall be for any money or goods won by playing at cards, dice, or any other game whatever, or by betting on the sides or hands of such as are gaming, or by any betting or gaming whatever, or for reimbursing or repaying any moneys knowingly lent or advanced for any gaming or betting, shall be void and of no effect, as between the parties to the same, and as to all persons, except such as shall hold or claim under them in good faith, and without notice of the illegality of such contract or conveyance.
(4) Whenever any mortgage or other conveyance of land is adjudged void under (3), such lands shall enure to the sole benefit of such person or persons as would be entitled thereto, if the mortgagor or grantor were naturally dead; and all grants and conveyances for preventing such lands from coming to or devolving upon the person or persons to whose use, and benefit the said lands would so enure, is fraudulent and of no effect, except as against purchasers in good faith, and without notice of the illegality of such mortgage or other conveyance.
750.157a Conspiracy to commit offense or legal act in illegal manner; penalty.
Sec. 157a.
Any person who conspires together with 1 or more persons to commit an offense prohibited by law, or to commit a legal act in an illegal manner is guilty of the crime of conspiracy punishable as provided herein:
(a) Except as provided in paragraphs (b), (c) and (d) if commission of the offense prohibited by law is punishable by imprisonment for 1 year or more, the person convicted under this section shall be punished by a penalty equal to that which could be imposed if he had been convicted of committing the crime he conspired to commit and in the discretion of the court an additional penalty of a fine of $10,000.00 may be imposed.
(b) Any person convicted of conspiring to violate any provision of this act relative to illegal gambling or wagering or any other acts or ordinances relative to illegal gambling or wagering shall be punished by imprisonment in the state prison for not more than 5 years or by a fine of not more than $10,000.00, or both such fine and imprisonment. [Emphasis supplied.]
(c) If commission of the offense prohibited by law is punishable by imprisonment for less than 1 year, except as provided in paragraph (b), the person convicted under this section shall be imprisoned for not more than 1 year nor fined more than $1,000.00, or both such fine and imprisonment.
(d) Any person convicted of conspiring to commit a legal act in an illegal manner shall be punished by imprisonment in the state prison for not more than 5 years or by a fine of not more than $10,000.00, or both such fine and imprisonment in the discretion of the court.
750.159g “Racketeering” defined.
Sec. 159g.
As used in this chapter, “racketeering ” means committing, attempting to commit, conspiring to commit, or aiding or abetting, soliciting, coercing, or intimidating a person to commit an offense for financial gain, involving any of the following:
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(f) A felony violation of section 18 of the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL 432.218, concerning the business of gaming.
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(x) A violation of section 301, 302, 303, 304, 305, 305a, or 313, concerning gambling.
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(cc) A violation of section 411k, concerning money laundering.
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(jj) An offense committed within this state or another state that constitutes racketeering activity as defined in section 1961(1) of title 18 of the United States Code, 18 U.S.C. 1961(1).
(kk) An offense committed within this state or another state in violation of a law of the United States that is substantially similar to a violation listed in subdivisions (a) through (ii).
(ll) An offense committed in another state in violation of a statute of that state that is substantially similar to a violation listed in subdivisions (a) through (ii).
[In 1999 Michigan adopted SB 562, which made it specifically unlawful to use the Internet to violate certain provisions of Michigan's anti-gambling laws, including sections 750.301 through 306 and 750.311. In 2000 Michigan adopted Public Act 185 which repealed the references to those anti-gambling sections. Thus, Michigan is not a state that has in effect a specific prohibition against using the Internet to make, offer or accept bets over the Internet.]
750.301 Accepting money or valuable thing contingent on uncertain event.
Any person or his or her agent or employee who, directly or indirectly, takes, receives, or accepts from any person any money or valuable thing with the agreement, understanding or allegation that any money or valuable thing will be paid or delivered to any person where the payment or delivery is alleged to be or will be contingent upon the result of any race, contest, or game or upon the happening of any event not known by the parties to be certain, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
750.302 Keeping or occupying common gambling house or building or place where gaming permitted; apparatus used for gaming or gambling; manufacture or possession of gaming or gambling apparatus for sale.
(1) Except as provided in subsection (2), any person, or his or her agent or employee who, directly or indirectly, keeps, occupies, or assists in keeping or occupying any common gambling house or any building or place where gaming is permitted or suffered or who suffers or permits on any premises owned, occupied, or controlled by him or her any apparatus used for gaming or gambling or who shall use such apparatus for gaming or gambling in any place within this state, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
(2) This section does not prohibit the manufacture of gaming or gambling apparatus or the possession of gaming or gambling apparatus by the manufacturer of the apparatus solely for sale outside of this state, or for sale to a gambling establishment operating within this state in compliance with the laws of this state, if applicable, and in compliance with the laws of the United States, provided the manufacturer meets or exceeds federal government requirements in regard to manufacture, storage, and transportation.
750.303 Keeping or maintaining gaming room, gaming table, or game of skill or chance for hire, gain, or reward; accessory; applicability of subsection (1) to mechanical amusement device, slot machine, or crane game; “slot machine” and “crane game” defined; notice.
(1) Except as otherwise provided in this section, a person who for hire, gain, or reward, keeps or maintains a gaming room, gaming table, game of skill or chance, or game partly of skill and partly of chance, used for gaming, or who permits a gaming room, or gaming table, or game to be kept, maintained, or played on premises occupied or controlled by the person, is guilty of a misdemeanor, punishable by imprisonment for not more than 2 years, or a fine of not more than $1,000.00. A person who aids, assists, or abets in the keeping or maintaining of a gaming room, gaming table, or game, is guilty of a misdemeanor, punishable by imprisonment for not more than 2 years, or a fine of not more than $1,000.00.
(2) Subsection (1) does not apply to a mechanical amusement device which may, through the application of an element of skill, reward the player with the right to replay the mechanical amusement device at no additional cost if the mechanical amusement device is not allowed to accumulate more than 15 replays at 1 time; the mechanical amusement device is designed so that accumulated free replays may only be discharged by reactivating the device for 1 additional play for each accumulated free replay; and the mechanical amusement device makes no permanent record, directly or indirectly, of the free replays awarded.
(3) Subsection (1) does not apply to a slot machine if the slot machine is 25 years old or older and is not used for gambling purposes. As used in this section, “slot machine” means a mechanical device, an essential part of which is a drum or reel which bears an insignia and which when operated may deliver, as a result of the application of an element of chance, a token or money or property, or by operation of which a person may become entitled to receive, as a result of the application of an element of chance, a token or money or property.
(4) A slot machine which is being used for a gambling purpose in violation of subsection (3) shall be confiscated and turned over to the director of the department of state police for auction.
(5) Subsection (1) does not apply to a crane game. As used in this section, “crane game” means an amusement machine activated by the insertion of a coin by which the player uses 1 or more buttons, joysticks, or similar means of control, or a combination of those means of control, to position a mechanical or electromechanical claw, or other retrieval device, over a prize, toy, novelty, or an edible item having a wholesale value of not more than $3.75, and thereby attempts to retrieve the prize, toy, novelty, or edible item. Every prize, toy, or edible item must be retrievable by the claw. A slot machine is not considered a crane game.
(6) A person who knowingly alters a crane game that is available for play so that the crane game is not in compliance with the elements of the definition contained in subsection (5) is guilty of a felony, punishable by imprisonment for not more than 2 years, or a fine of not more than $20,000.00, or both.
(7) A law enforcement officer may confiscate any crane game that is available for play and is not in compliance with the elements of the definition contained in subsection (5). The confiscated crane games and their contents shall not be destroyed, altered, dismantled, sold, or otherwise disposed of except upon order of a court having competent jurisdiction.
(8) The following notice shall be conspicuously posted on the front of every crane game located in this state: “This game is not licensed or regulated by the state of Michigan.”
750.303a Applicability of chapter; recreational card playing conducted at senior citizen housing facility.
This chapter does not apply to recreational card playing conducted at a senior citizen housing facility not licensed by the liquor control commission by a senior citizens club or a group of residents of a senior citizen housing facility that consists of at least 15 members who are 60 years of age or older under all of the following circumstances:
(a) The card playing is conducted solely for the amusement and recreation of the members and guests of the club or group and is not conducted for fund-raising. The number of guests participating in the card playing shall not exceed the number of club or group members participating in the card playing.
(b) Only bona fide members and employees of the club or group participate in the conduct of the activity.
(c) The card playing is conducted after 9 a.m. and before midnight.
(d) The participating cardplayers bet not more than 25 cents per bet.
(e) The winnings from 1 hand of cards do not exceed $5.00.
(f) Except for winnings, revenue generated from the activity is used for reasonable expenses incurred in conducting the card playing, and no person is compensated for participating in the conduct of the card playing.
750.304 Selling pools and registering bets.
Any person or his or her agent or employee who, directly or indirectly, keeps, maintains, operates, or occupies any building or room or any part of a building or room or any place with apparatus, books, or any device for registering bets or buying or selling pools upon the result of a trial or contest of skill, speed or endurance or upon the result of a game, competition, political nomination, appointment, or election or any purported event of like character or who registers bets or buys or sells pools, or who is concerned in buying or selling pools or who knowingly permits any grounds or premises, owned, occupied, or controlled by him or her to be used for any of the purposes aforesaid, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
750.305 Publication or distribution of betting odds; penalty.
(1) Any person, or his or her agent or employee who, directly or indirectly, by means of any newspaper, periodical, poster, notice, or other mode of publication or reproduction, writes, prints, publishes, advertises, delivers, or distributes or offers to deliver or distribute to the public or to any part thereof or to any person, any statement or information concerning the making or laying of wagers or bets or the selling of pools or evidences of betting odds on any contest or game or on the happening of any event not known by the parties to be certain, or any purported event of like character, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
(2) The acts prohibited in subsection (1) constitute violations of subsection (1) when committed before any game, contest, or event. The possession of evidence for the publication of any statement or information concerning the making or laying of wagers or bets or the selling of pools or betting odds also constitutes a violation of subsection (1) when possessed for publication before the act evidenced thereby.
750.305a Racing results; unlawful use of teletype ticker, exceptions; prima facie evidence; penalties.
It shall be unlawful for any corporation, association, firm, co-partnership or person, either directly, or indirectly, or by or through any agent or employee, to lease, loan, sell, assign or in any way cause to be furnished any machine, device or instrumentality, excluding the telephone, and including but not limited to the device commonly referred to as a teletype ticker, registering or recording by any words, figures, signs, characters or hieroglyphics information concerning and the results of racing as defined in section 331 of Act No. 328 of the Public Acts of 1931, being section 750.331 of the Compiled Laws of 1948, or any statement or information concerning the making or laying of wagers, or bets, or the selling of pools or evidences of betting odds on any such race, to any person, firm, association, co-partnership or corporation, directly, indirectly or otherwise, or to their agents or employees within this state; and it shall likewise be unlawful for any corporation, association, firm, co-partnership or person, either directly or indirectly, or by or through any agent or employee, to transmit, convey or otherwise cause to be transmitted or conveyed through facilities owned, operated, leased by, serviced by, or otherwise under the control of such corporation, association, firm, co-partnership or person, such information to a teletype ticker or other device or instrumentality recording the same within this state; and it shall likewise be unlawful for any corporation, association, firm, co-partnership or person to string wires or other means of transmitting such information to such device or instrumentality within this state, used for recording such information, or to maintain, service, repair, lease, rent or install such communication lines and such recording devices or instrumentalities to, in and upon any premises in this state: Provided, however, That the provisions hereof shall not apply to the transmission and recording of such information to bona fide newspapers, having a general circulation and carrying principally local, sports, or national news of general interest and shall not apply to duly licensed radio and television stations or to press associations for distribution to such newspapers, radio or television stations nor to the use of totalizers and mechanical devices legally used, under the provisions of section 13, Act No. 199, Public Acts of 1933 as amended, being section 431.13 of the Compiled Laws of 1948, it being the intention of this section to make unlawful the transmission of such information and the furnishing and maintenance of facilities for the receipt and recordation of such information to so-called hand-books, bookies, pool rooms and to any and all other agencies within this state for illegal gambling purposes. The presence of a so-called teletype ticker machine or other device or instrumentality for recording such information and the presence of wires installed for the transmitting of such information in, upon and to any premises within this state other than hereinbefore excepted is hereby declared to be prima facie evidence of the criminal intent of the person, firm, association, co-partnership or corporation and its agents and employees, lending, leasing, renting, conveying, supplying, servicing or otherwise maintaining said wires, devices or instrumentalities: Provided, however, That said presumption of criminal intent shall be rebutted if the corporation, association, firm, co-partnership, person, agent, or employee, furnishing, maintaining, servicing, or installing such device or facilities or transmitting such information, prior to the issuance of a warrant for the violation of this section, shall have notified the prosecuting attorney of the county where the violation is alleged to have occurred in writing that such device and facilities may be used for unlawful and illegal purposes. Any person, co-partnership, firm, association or corporation and any agent and employee thereof who shall, directly or indirectly, do or cause to be done any act or acts hereinbefore declared to be unlawful shall be guilty of a misdemeanor punishable by imprisonment in the state prison for not more than 2 years or by a fine of $5,000.00, or both fine and imprisonment: Provided, however, That no public utility corporation engaged in the distribution and selling of electrical energy shall be deemed to be in violation of this act by reason of its sale of electrical energy to a telephone or telegraph company, or by reason of its permitting its poles or conduits to be occupied by the wires and cables of a telephone or telegraph company.
750.306 Pool tickets; declaration as nuisance.
(1) All policy or pool tickets, slips or checks, memoranda of any combination, or other bet, manifold, or other policy or pool books or sheets are hereby declared a common nuisance and the possession of 1 or more of those items is a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
(2) The possession of articles listed in subsection (1), or of any other implements, apparatus, or materials of any other form of gaming, is prima facie evidence of their use, by the person having them in possession, in the form of gaming in which like articles are commonly used. And such article found upon the person of one lawfully arrested for violation of any law relative to lotteries, policy lotteries or policy, the buying or selling of pools or registering of bets or other form of gaming is competent evidence upon the trial of an indictment to which it may be relevant.
750.307 Gambling; prima facie evidence.
Prima facie evidence—In a prosecution or proceeding relative to lotteries, policy lotteries or policy, buying and selling pools or registering bets, any words, figures or characters, written, printed or exposed upon a blackboard, placard or otherwise in a place alleged to be used or occupied for such business, purporting or appearing to be a name of a horse or jockey, or a description of or reference to a trial or contest of skill, speed or endurance of man, beast, bird or machine, or game, competition, political nomination, appointment or election, or other act or event, or any odds, bet, combination bet or other stake or wager, or any code, cipher or substitute therefor, shall be prima facie evidence of the existence of the race, game, contest or other act or event so purporting or appearing to be referred to, and that such place is kept or occupied for gaming; and in all cases a copy or oral description thereof shall be competent evidence of the same.
750.308 Gaming house; search warrant; seizure of apparatus and material; arrest.
If a person makes oath before a judge that he or she has probable cause to believe and does believe that a house or other building, room, or place is used as and for a common gaming house, for gaming for money or other property, or is occupied, used, or kept for promoting a lottery, or for the sale of lottery tickets, or for promoting the game known as a policy lottery or policy, or for the buying or selling of pools or registering of bets upon any race, game, contest, act, or event, and that persons resort thereto for any such purpose, the judge, whether the names of the persons last mentioned are known to the complainant or not, shall, if he or she be satisfied there is reasonable cause for such belief, issue a warrant commanding the sheriff or deputy sheriff or any constable or police officer to enter and search such house, building, room, or place, and if any lottery, policy or pool tickets, slips, checks, manifold books or sheets, memoranda of any bet, or other implements, apparatus, or material of any form of gaming be found in the place, to take into his or her custody all the implements, apparatus, or material of gaming, including any articles, equipment, furniture, loud speakers and amplifying apparatus, adding machines, calculators, money changers and boxes, and money found therein or in or on gambling apparatus, or material used in connection with or the promotion of gambling or a gambling place; and upon the finding of such apparatus and material of any form of gaming, the officers shall be authorized to arrest the keepers of the place, all persons in any way assisting in keeping the same, whether as capper, tout, guard, doorkeep, lookout, or otherwise, and all persons who are there found, and to keep the persons, implements, apparatus, or material of gaming, including any punch board prizes, articles, equipment, furniture, loud speakers and amplifying apparatus, adding machines, calculators, money changers and boxes, and money found therein or in or on gambling apparatus, or material used in connection with or the promotion of gambling or a gambling place, so that they may be forthcoming before some court or magistrate to be dealt with according to law. The provisions of law relative to destroying or other disposition of gaming articles shall apply to all articles and property seized as herein provided.
750.308a Disposition of articles or property seized.
On application of a sheriff, chief of police of a police department, commissioner of the Michigan state police, or other peace officer, a court or magistrate of competent jurisdiction may upon due notice and hearing turn over to said sheriff, chief of a police department, commissioner of the Michigan state police, or peace officer, any articles or property listed under the provisions of section 308 of this chapter lawfully seized by any such peace officer for such disposition as the court or magistrate shall prescribe, or said court or magistrate may provide for the destruction or other disposition of said articles or property.
Any funds derived from the disposition of any such articles or property shall be turned over to the treasurer of the city, township or county whose law enforcement officer made application for the disposition of such articles or property, or to the state treasurer if such application is made by the commissioner of the Michigan state police.
750.309 Frequenting or attending gaming places.
Frequenting or attending gaming places—Any person who shall attend or frequent any place where gaming or gambling is suffered or permitted, or any place operated or occupied as a common gaming or gambling house or room, shall be guilty of a misdemeanor.
750.310 Exceptions.
This chapter shall not be construed to prohibit or make unlawful the operation of a game of skill or chance pursuant to the Michigan Exposition and Fairgrounds Act or the giving or payment of purses, prizes, or premiums to players in a game or participants in a contest or to the owner, driver, manager, or trainer of animals or the drivers, mechanics, or operators of a machine or the giving or payment of entry fees or the payment of expenses or reward for services or labor in connection with a race, contest, or game but it shall apply to the selling of pools or to a transaction whereby money or a valuable thing shall be paid as a gain or speculation on the result of a contest, race, game, or event not known to the parties to be certain and concerning which the parties to the transaction do not render service directly related to the holding of the contest, race, or game or the bringing about of the event.
750.310a Applicability of chapter; bowling game or bowling card game.
(1) Subject to subsection (3), this chapter does not apply to a bowling game or a bowling card game conducted in a bowling center to which all of the following apply:
(a) The total amount of the participation fee per person per game does not exceed $5.00.
(b) The total prize payout per league per game does not exceed $1,000.00 and is comprised only of participation fees.
(2) This section applies only to a game that is sponsored solely by 1 league and whose participants are members of the same league.
(3) The bowling center in which the bowling game or bowling card game is conducted shall not receive a percentage of the participation fees or prize money from bowling games or bowling card games for which a stake or prize is awarded.
(4) As used in this section:
(a) "Bowling center " means a bowling alley with a minimum of 5 lanes.
(b) "Bowling card game " means a card game held in conjunction with a bowling game, the results of which depend on the outcome of the bowling game. Bowling card game does not include any of the following:
(i) A mechanical or electronic simulation of a bowling card game.
(ii) Roulette, beano, cards unless used in a bowling card game, dice, wheels of fortune, video poker, slot machines, or other similar games in which winning depends primarily upon fortuitous or accidental circumstances beyond the control of the player.
(iii) A game that includes a mechanical or physical device that directly or indirectly impairs or thwarts the skill of the player.
(c) "Bowling game " means not more than 3 sets of 10 frames of bowling. Bowling game does not include any of the following:
(i) A mechanical or electronic simulation of a bowling game.
(ii) Roulette, beano, cards unless used in a bowling card game, dice, wheels of fortune, video poker, slot machines, or other similar games in which winning depends primarily upon fortuitous or accidental circumstances beyond the control of the player.
(iii) A game that includes a mechanical or physical device that directly or indirectly impairs or thwarts the skill of the player.
(d) "Participation fee " means a fee that is charged by the league to a participant in a game for which a stake or prize is awarded.
750.310b Applicability of chapter; redemption.
(1) This chapter does not apply to a redemption game if all of the following conditions are met:
(a) The outcome of the game is determined through the application of an element of skill by the player.
(b) The award of the prize is based upon the player's achieving the object of the game or otherwise upon the player's score.
(c) Only noncash prizes, toys, novelties, or coupons or other representations of value redeemable for noncash prizes, toys, or novelties are awarded.
(d) The wholesale value of a prize, toy, or novelty awarded for the successful single play of a game is not more than $3.75.
(e) The redemption value of coupons or other representations of value awarded for the successful single play of a game does not exceed 15 times the amount charged for a single play of the game or $3.75, whichever is less. However, players may accumulate coupons or other representations of value for redemption for noncash prizes, toys, or novelties of a greater value up to, but not exceeding, $250.00 wholesale value.
(2) As used in this section, “redemption game” means a single player or multi-player mechanical, electronic, or manual amusement device involving a game, the object of which is throwing, rolling, bowling, shooting, placing, propelling, or stopping a ball or other object into, upon, or against a hole or other target. Redemption game does not include either of the following:
(a) Games such as roulette, beano, cards, dice, wheels of fortune, video poker, slot machines, or other games in which winning depends primarily upon fortuitous or accidental circumstances beyond the control of the player.
(b) A game that includes a mechanical or physical device which directly or indirectly impairs or thwarts the skill of the player.
750.311 Gambling in stocks, bonds, grain or produce.
Gambling in stocks, bonds, grain, etc.—It shall be unlawful for any corporation, association, firm, copartnership or person to keep or cause to be kept by any agent or employe within this state, any office, store or other place, wherein is conducted or permitted the pretended buying or selling of the shares of stocks or bonds of any corporation, or petroleum, cotton, grain, provisions or other produce, either on margins or otherwise, without any intention of receiving and paying for the property so bought or of delivering the property so sold; or wherein is conducted or permitted the pretended buying or selling of such property on margins, when the party selling the same or offering to sell the same does not have the property on hand to deliver upon such sale; or when the party buying any of such property, or offering to buy the same, does not intend actually to receive the same if purchased or to deliver the same if sold; all such acts and all purchases and sales, or contracts and agreements for the purchase and sale of any of the property aforesaid in manner aforesaid, and all offers to sell the same or to purchase the same in manner aforesaid, as well as all transactions in stocks, bonds, petroleum, cotton, grains or provisions in the manner as aforesaid, on margins for future or optional delivery, are hereby declared gambling and criminal acts, whether the person buying or selling or offering to buy or sell acts for himself or as an agent, employe or broker for any firm, copartnership, company, corporation, association or broker's office.
750.312 Commission merchants, statements on demand.
Commission merchants, etc., to furnish written statement, etc., on demand-It shall be the duty of every commission merchant, firm, copartnership, association, corporation or broker doing business as such, to furnish upon demand, to any customer or principal for whom such commission merchant, broker, firm, copartnership, corporation or association has executed any order for the actual purchase or sale of any of the commodities mentioned in the next preceding section of this chapter either for immediate or future delivery, a written statement containing the names of the parties from whom any such property was bought or to whom it shall have been sold, as the case may be, the time when, the place where and the price at which the same was either bought or sold; and in case such commission merchant, broker, firm, copartnership, corporation or association shall refuse promptly to furnish such statement upon reasonable demand, the fact of such refusal shall be prima facie evidence that such property was not sold or bought in legitimate manner upon the open market.
750.313 Gambling in stocks, bonds, grain or produce; penalty.
Penalty for gambling and using property for gambling in stocks, bonds, grain, etc.-Any person who shall knowingly permit any of the acts set forth in the eleventh section of this chapter in his building, house or in any out-house, booth, arbor or erection of which he has the title, care or possession, shall be guilty of a felony, punishable by imprisonment in the state prison not more than 2 years or by a fine of not less than 500 dollars or more than 1,000 dollars, and any penalty so adjudged shall be a lien upon the premises on or in which such unlawful acts are carried on or permitted, and any person whether acting for himself, or as a broker, agent or employe of any person, or as an officer, broker, agent or employe of any corporation, association, firm or co-partnership, who shall violate any of the provisions of the eleventh section of this chapter, shall be guilty of a felony, punishable by imprisonment in the state prison not more than 2 years, or by fine of not less than 500 dollars nor more than 1,000 dollars.
[Note: Michigan's Bucket Shop law provides:
750.127 Bucket shop; definition.
Bucket shops defined-A bucket shop, within the meaning of this chapter, is defined to be an office, store or other place wherein the proprietor or keeper thereof, or other person or agent, either in his or its own behalf, or as the agent or correspondent of any other person, corporation, association or copartnership within or without the state conducts the business of making or offering to make contracts, agreements, trades or transactions respecting the purchase or sale, or purchase and sale of any stocks, grains, provisions or other commodity or personal property wherein both parties thereto, or said proprietor or keeper contemplated or intended that the contracts, agreements, trades or transactions shall be, or may be closed, adjusted or settled according to or upon the basis of the market quotations or price made on any board of trade or exchange, upon which the commodities or securities referred to in such contracts, agreements, trades or transactions are dealt in, and without a bona fide transaction on such board of trade or exchange, or wherein both parties or such keeper or proprietor shall contemplate or intend that such contracts, agreements, trades or transactions shall be or may be deemed closed or terminated, when the market quotations of prices made on such board of trade or exchange for the articles or securities named in such contracts, agreements, trades or transactions shall reach a certain figure, and also any office, store or other place where the keeper, person or agent or proprietor thereof, either in his or its own behalf, or as an agent as aforesaid therein, makes or offers to make, with others, contracts, trades or transactions for the purchase or sale of any such commodity, wherein the parties thereto do not contemplate the actual or bona fide receipt or delivery of such property, but do contemplate a settlement thereof based upon differences in the price at which said property is or is claimed to be bought and sold. The said crime shall be complete against any proprietor, person, agent or keeper thus offering to make any such contracts, trades or transactions, whether such offer is accepted or not.
750.128 Maintenance of bucket shop; punishment.
Punishment-Any corporation, association, copartnership, person or persons, or agent, who shall keep or cause to be kept within this state, any bucket shop, and any corporation, person or persons, or agents whether acting individually or as a member or as an officer, agent or employe or any corporation, association or copartnership, who shall keep, maintain or assist in the keeping and maintaining, of any such bucket shop within this state, shall be guilty of a felony, punishable by imprisonment in the state prison not more than 2 years or by a fine of not less than 500 dollars or more than 1,000 dollars.
The continuance of such establishment after the first conviction shall be deemed a second offense and if the offender be a corporation, it shall be liable to forfeiture of all its rights and privileges as such.
750.314 Winning at gambling.
Any person who by playing at cards, dice, or any other game, or by betting or putting up money on cards, or by any other means or device in the nature of betting on cards, or betting of any kind, wins or obtains any sum of money or any goods, or any article of value whatever, is guilty of a misdemeanor if the money, goods, or articles so won or obtained are of the value of not more than $50.00. If the money, goods, or articles so won or obtained are of the value of more than $50.00, the person is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
750.315 Losing at gambling.
Losing at gambling—Any person who shall lose any sum of money, or any goods, article or thing of value, by playing or betting on cards, dice or by any other device in the nature of such playing or betting, and shall pay or deliver the same or any part thereof to the winner, and shall not, within 3 months after such loss, without covin or collusion, prosecute with effect for such money or goods, the winner to whom such money or goods shall have been so paid or delivered, shall be guilty of a misdemeanor, punishable by a fine not exceeding 3 times the value of such money or goods. Such loser may sue for and recover such money in an action for money had and received to the use of the plaintiff; and such goods, article or valuable thing in an action of replevin, or the value thereof in an action on the case.
750.330 Betting odds; publishing and selling.
Sec. 330.
Any person, firm, or corporation, who by means of any newspaper, periodical, poster, notice, or other mode of publication or reproduction, publishes or sells reports of betting odds on horse races wherever conducted is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00.
This section does not apply to trotting or pacing races permitted to be held in this state, nor to races conducted at state or county fairs or other fairs conducted by agricultural societies; nor as prohibiting the publication of matters pertaining to pedigrees, entries or results of races excepted by this section, or programs for the use solely of spectators at races nor to any publication designed solely for the benefit of breeders or purchasers of stock.
750.331 Racing; definition, penalty.
Sec. 331.
All running, trotting, or pacing of horses, or any other animals, for any bet or stakes, in money, goods, or other valuable thing, excepting such as are by special laws for that purpose expressly allowed, constitute racing within the meaning of this section, and are hereby declared to be common and public nuisances and all parties concerned therein, either as authors, betters, stakers, stake-holders, judges to determine the speed of animals, riders, contrivers, or abettors thereof, are guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00. However, this section does not apply to the giving of premiums by agricultural and other societies and associations for the running and trotting of horses at fairs or regularly appointed meetings.
Every person who contributes or collects any money, goods, or things in action, for the purpose of making up a purse, plate, or other valuable thing, to be raced for by any animal, contrary to law, is guilty of a misdemeanor.
750.372 Lotteries and gift enterprises; prohibited acts; applicability of subsection (1); “promotional activity” defined; violation as misdemeanor; penalty.
(1) Except as otherwise provided by law or in this section, a person shall not do any of the following:
(a) Set up or promote within this state any lottery or gift enterprise for money.
(b) Dispose of any property, real or personal, goods, chattels, merchandise, or valuable thing by the way of lottery or gift enterprise.
(c) Aid, either by printing or writing, or in any way be concerned in the setting up, managing, or drawing of a lottery or gift enterprise.
(d) In a house, shop, or building owned or occupied by him or her or under his or her control, knowingly permit the setting up, managing, or drawing of any lottery or gift enterprise, or knowingly permit the sale of any lottery ticket or share of a ticket, or any other writing, certificate, bill, goods, chattels, merchandise, token, or other device purporting or intended to entitle the holder or bearer or other person to any prize or gift or any share of or interest in any prize or gift to be drawn in any lottery or gift enterprise.
(e) Knowingly allow money or other property to be raffled off in a house, shop, or building owned or occupied by him or her or allow money or other property to be won by throwing or using dice or by any other game or course of chance.
(2) Subsection (1) does not apply to a lottery or gift enterprise conducted by a person as a promotional activity that is clearly occasional and ancillary to the primary business of that person. As used in this subsection, “promotional activity” means an activity that is calculated to promote a business enterprise or the sale of its products or services, but does not include a lottery or gift enterprise involving the payment of money solely for the chance or opportunity to win a prize or a lottery or gift enterprise that may be entered by purchasing a product or service for substantially more than its fair market value.
(3) A person violating subsection (1) is guilty of a misdemeanor punishable by imprisonment for not more than 2 years or by a fine of not more than $1,000.00.
750.375 Advertising, printing, or publishing lottery tickets; prohibited conduct; violation as misdemeanor; penalty.
(1) Except in the case of a lottery or gift enterprise conducted pursuant to section 372(2), a person shall not advertise, print, or publish any lottery ticket or gift enterprise or any share in a lottery ticket for sale either by himself or herself or by another person.
(2) Except in the case of a lottery or gift enterprise conducted pursuant to section 372(2), a person shall not set up or exhibit or devise and make for the purpose of being set up and exhibited any sign, symbol, or any emblematic or other representation of a lottery or gift enterprise or of its drawing in any way indicating where a lottery ticket or a share in a lottery ticket or any such writing, certificate, bill, goods, merchandise or chattels, token, or other device may be purchased or obtained and shall not in any way invite or entice, or attempt to entice, any other person to purchase or receive the lottery ticket or a share in a lottery ticket.
(3) A person violating this section is guilty of a misdemeanor punishable by imprisonment for not more than 90 days or a fine of not more than $500.00, or both.