MICHIGAN

1. Definition of Gambling

   The word "game" is very comprehensive, and embraces every contrivance or institution which has for its object to furnish sport, recreation or amusement. People v. Weithoff (1883) 51 Mich 203, 16 NW 442, 47 Am Rep 557.

   Gambling" occurs when there is a chance for profit if a player is skillful and lucky. State ex rel. Com'r of State Police v. One Helix Game, 122 Mich. App. 148, 333 N.W.2d 24 (1982). "Gambling" connotes activities that, if not totally proscribed by law, are at least strictly regulated by the government. Michigan Criminal Law and Procedure, Gambling §§ 87:1

   The term "gambling" is applied to those activities played with cards, dice, or any other contrivance, in which an object or a sum of money is at stake and which may be won or lost. Shaw v. Clark, 49 Mich. 384, 13 N.W. 786 (1882).1 Betting commonly means the putting of a certain amount of money or other valuable thing at stake on the happening or not happening of some uncertain event.Shaw v. Clark, 49 Mich. 384, 13 N.W. 786 (1882).

   Gaming commonly applies to playing with stakes at cards, dice or other contrivance to see which shall be the winner and which the loser, a contract for the purchase of options is not gaming in this sense. Shaw v. Clark, 49 Mich. 384, 388, 13 N.W. 786 (1882). Laying a stake on the chances of a game is "gaming. " People v. Weithoff, 51 Mich. 203, 16 N.W. 442 (1883). Where two or more persons play cards in a place where liquors and cigars are kept for sale, with an agreement that the one defeated at the game shall pay for the liquor or cigars for the party, such playing is gambling. Hay v. Reid, 85 Mich. 296, 304, 48 N.W. 507 (1891).

   The operation of "gambling" games, at amusement park with pay-off in merchandise instead of money was gambling. Eastwood Park Amusement Co. v. Stark (1949) 38 N.W.2d 77, 325 Mich. 60. Gaming exists, wherever a stake is laid on the chances of a game; and baseball and horse-racing are games, and so is any pooling scheme in betting. People v. Weithoff (1883) 16 N.W. 442, 51 Mich. 203, 47 Am .Rep. 557.

   A bet, like an ordinary contract, involves a concurrence of wills; there must be an offer and an acceptance in accordance with its terms .State ex rel. Reading v. W.U. Tel. Co., 336 Mich. 84, 57 N.W.2d 537 (1953). A bet is made at the time and place where the offer of it is accepted. State ex rel. Reading v. W.U. Tel. Co., 336 Mich. 84, 57 N.W.2d 537 (1953). An allegation in a complaint to abate a nuisance that the defendant telegraph company aided gambling by the acceptance of bets on horse races for transmission out of state and transmitted winnings to local bettors inside the county in which the proceedings were instituted, does not aver conduct of illegal gambling under the padlock statute nor does it establish a nuisance enjoinable at common law. State ex rel. Reading v. W.U. Tel. Co., 336 Mich. 84, 57 N.W.2d 537 (1953). 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. MCLS § 750.314

"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 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. A game that includes a mechanical or physical device which directly or indirectly impairs or thwarts the skill of the player.
A redemption game is not considered gambling and is played 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. M.C.L.A. 750.310b

Video draw poker machines were mechanical amusement devices and were not illegal gambling devices per se so as to subject them to seizure by Liquor Control Commission, despite fact that games were operated by electronic, rather than purely mechanical, means; machines did not accumulate more than three replays at once, replays could not be discharged except by reactivating device for additional unit of play, machines did not keep permanent record of free replays awarded, and draw poker involved element of skill. M.C.L.A. § 750.303(1, 2). Primages Intern. of Michigan v. Liquor Control Com'n, 199 Mich. App. 252, 501 N.W.2d 268 (1993).

1.1. Dominant factor

Laying a stake on the chances of a game is "gaming. " People v. Weithoff, 51 Mich. 203, 16 N.W. 442 (1883).

1.2. Material Element
1.3. “Any” chance
1.4. Other Test
1.5. Exemptions

While general law in Michigan prohibits gambling, many gambling activities are legal after proper licensing by state, such as horse racing, bingo, millionaire parties and charity games, gambling on boxing and wrestling events, games of chance at annual Michigan state fair and state sponsored lottery, and therefore, express public policy of Michigan is to promote "legal" gambling (MSA §§ 12.1280(62), 18.425(814), 18.966(5), 18.966(42), 18.969(1) et seq., 18.969(101) et seq., 28.533 et seq.; MCLS §§ 285.172, 339.814, 431.72, 431.80, 432.1 National Recovery System v. Kasle, 662 F. Supp. 139 (1987).

2. Definition of bookmaking
3. Gambling room

If room is one whose use is intended to facilitate gaming operations, staking of money or other thing of value on trials of chance, skill and endurance, same constitutes a gaming room. People v. Weithoff, 51 Mich. 203, 213, 16 N.W. 442 (1883). Room fitted up to furnish information which enabled persons to exercise their judgment in laying wagers was a gaming room. People v. Weithoff, 93 Mich. 631, 634, 53 N.W. 784 (1892).

4. Specific Gaming Device definitions

A gambling device may be defined as a machine, mechanical device, contrivance, appliance or invention, whatever its name or character, which is operated or can be operated as a game of chance. Oatman v. Davidson, 310 Mich. 57, 16 N.W.2d 665 (1944)Any machine, device or apparatus, by the operation or use of which the customer or player anticipates a chance to gain, either in money or merchandise beyond a fair exchange (after allowing for a reasonable profit) for the amount of money invested, is a gambling device which violates the statute. Henry v. Kuney, 280 Mich. 188, 273 N.W. 442 (1937). Thus, where there is an element of chance in the operation of a slot machine--where the one who plays the machine stands to win or lose money, trade checks or prizes, by chance--the machine is a gambling device and violates the statute which is directed against gaming or gambling devices. Gibson v. Martin, 308 Mich. 178, 13 N.W.2d 252 (1944).Within the category of gambling devices prohibited by the statute are slot machines and punch boards whose only practical use is for gambling both of which are classed as gambling devices per se. People v. Alicki, 321 Mich. 701, 33 N.W.2d 124 (1948), People v. Lippert, 304 Mich. 685, 8 N.W.2d 880 (1943) Whether a pinball machine is a gambling device depends on the question of fact as to whether it is used for gambling purposes. When used for amusement or entertainment purposes only, and not for gambling, it is not per se subject to seizure as a gambling device. MCLA § 750.303,

Gambling devices being prohibited by statute, their owners acquire no property rights in them, and they are liable to seizure, forfeiture and destruction without violating any constitutional provision. People v. Simms, 322 Mich. 362, 34 N.W.2d 1 (1948);Mandamus will not lie to compel the return of money which was the proceeds of unlawful gaming. Martucci v. Ballenger, 322 Mich. 270, 33 N.W.2d 789 (1948).

Only one portion of the legislative gambling scheme deals with per se gambling devices, i.e., machines that can be used for nothing else except gambling. Section 302 provides, among other things, that any person "who shall suffer or permit on any premises owned, occupied or controlled by him any apparatus used for gaming or gambling" shall be guilty of a misdemeanor. This part of § 302 deals not with gambling itself but with the mere keeping of a gambling device, regardless of whether it was ever used for gambling. The proper construction of this limited prohibition, therefore, is that only games that are for gambling use only, and therefore are gambling devices per se, are prohibited from being possessed. People v Lippert, 304 Mich 685, 690-691; 8 NW2d 880 (1943). State ex rel. Commissioner of State Police v. One Helix Game, 122 Mich. App. 148, 156 (Mich. Ct. App. 1982)

Under Mich. Admin. Code r. 436.1013, entitled "Gambling and gambling devices prohibited," a liquor licensee shall not allow unlawful gambling on the licensed premises; and a licensee shall not allow any gambling devices on the licensed premises which are prohibited by the statutes of this state. F.A.C.E. Trading, Inc. v. Dep't of Consumer & Indus. Servs., 270 Mich. App. 653 (Mich. Ct. App. 2006)

Prohibition against keeping or maintaining gaming device is against use in gambling and not against mere possession (Act No. 328, Pub Acts 1931, § 303; MSA § 28.535). Grand Trunk Western R. Co. v. Lansing, 291 Mich. 589, 289 N.W. 265 (1939).

The provision of the Penal Code which proscribes permitting the use of a gambling apparatus on a premises is not limited to devices which are used exclusively for gambling, but may apply to devices which, although not exclusively so used, are determined to have been used for gambling (MSA § 28.534(1); MCLS § 750.302(1)). People v. Lopez, 187 Mich. App. 305, 466 N.W.2d 397 (1991); People v. White, Id.

A draw poker machine which required insertion of money to play, employed chance in the random distribution of playing cards, and provided a reward in the form of free replays, and which did not qualify as an exempt amusement device because it allowed the accumulation of more than fifteen replays, allowed free replays to be discharged without actually being played, and kept a permanent record of the number of free replays awarded was an illegal gaming device (MSA § 28.535(1), (2); MCLS § 750.303(1), (2)). Automatic Music & Vending Corp. v. Liquor Control Commission, 426 Mich. 452, 396 N.W.2d 204 (1986).

All shipments of gambling devices, including slot machines, to licensed casinos in this state, the registering, recording, and labeling of which have been completed by the manufacturer or dealer thereof in accordance with chapter 1194, 64 Stat. 1134, 15 U.S.C. 1171 to 1178, are legal shipments of gambling devices into the state of Michigan. M.C.L.A. 432.223

5. Bucket shop laws

It is lawful to buy merchandise for future delivery even if at the time of purchase the seller has none to deliver. Gregory v. Wendell, 39 Mich. 337, 33 Am Rep 390; Gregory v. Wendell, 40 Mich. 432.

An agreement for a sale for future delivery is a gambling contract, and as such not enforceable where the intention is that there shall be no actual sale, but only that at the time fixed for delivery the parties shall settle, and the purchaser pay or receive the difference between the agreed price and the market price at that time according as the market price is less or greater. Gregory v. Wendell, 39 Mich. 337, 33 Am Rep 390 (1878).

It shall be unlawful for any corporation, association, firm, co-partnership or person to keep or cause to be kept by any agent or employee 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, employee or broker for any firm, co-partnership, company, corporation, association or broker's office. M.C.L.A. 750.311

P.A.1907, No. 336, prescribing punishment for operating a "bucket shop," was purely penal and did not preclude one who had dealt with an operator in good faith and with intent to actually buy stock from recovering for the operator's breach of contract. Goodspeed v. Smith (1910) 127 N.W. 813, 162 Mich. 641

6. Prohibition of games of skills

Horse racing, like foot racing, boat racing, football, and baseball, is game of skill and judgment, not game of chance. Rohan v. Detroit Racing Ass'n, 314 Mich. 326, 22 N.W.2d 433 (1946).

6.1. Poker/card Games

Recreational card playing are exempt from the gambling laws if the 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 card players 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. M.C.L.A. 750.303a

6.2. Games using dice
6.3. Billiards
6.4. Bowling

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 if all of the following apply to places where the total amount of the participation fee per person per game does not exceed $5.00 and the total prize payout per league per game does not exceed $1,000.00 and is comprised only of participation fees.
This applies only to a game that is sponsored solely by 1 league and whose participants are members of the same league. MCLS § 750.310a “

Bowling center" means a bowling alley with a minimum of 5 lanes. "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: MCLS § 750.310a

(i) A mechanical or electronic simulation of a bowling card game. MCLS § 750.310a
(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. MCLS § 750.310a
(iii) A game that includes a mechanical or physical device that directly or indirectly impairs or thwarts the skill of the player. MCLS § 750.310a

"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. MCLS § 750.310a

(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. MCLS § 750.310a

(iii) A game that includes a mechanical or physical device that directly or indirectly impairs or thwarts the skill of the player. MCLS § 750.310a

(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. MCLS § 750.310a Darts

7. Express Exemptions

7.1.Social Gaming
7.2.Charity Gaming

A "charity game" is the random resale of a series of charity game tickets. MCLA 432.102(4).Specifically, a "charity game ticket," also referred to as a "break open ticket" or "pull tab," is a ticket that is approved and acquired by the Bureau of State Lottery and is distributed and sold by the Bureau or a licensed supplier to a qualified organization. MCLA 432.102(5). Generally, one must remove a portion of the ticket to discover whether the ticket is a winner and whether the purchaser may be awarded a prize. MCLA 432.102(5).

No person other than a bona fide member of a qualified organization may participate in the management of bingo, a millionaire party, or a charity game, and the receipt of any commission, salary, pay, profit, or wage for participating in the management or operation of such games must be in accordance with Bureau rules. MCLA 432.110(1)

Charity game tickets may be obtained either from the Bureau of State Lottery or a licensed supplier; if from a licensed supplier, the supplier must remit to the Bureau an amount equal to the organization's purchase price of the tickets, less a specified amount that the supplier may keep for payment. MCLA 432.107a.

A licensee must conduct bingo or a millionaire party only with equipment that it owns, uses under a Bureau-approved rental contract, or is purchasing or renting at a reasonable rate from a supplier if not they must receive special permission by the Commissioner of the Bureau of State Lottery. MCLA 432.110(3). Equipment means the objects and mechanical or electromechanical devices used to determine or assist in determining the winners of prizes at events licensed under the Bingo Act. MCLA 432.103a(1).

7.2.1.1.Minors

Minors, that is, persons under the age of 18, are not permitted to wager the charity game. MCLA 432.107a(12).

7.2.2.Bingo

Bingo means a game of chance, commonly known as bingo, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random. MCLA 432.102(2).

The Commissioner of the Bureau of State Lottery is empowered by statute, commonly referred to as the Bingo Act, to issue licenses to conduct bingo games upon payment of the statutory fee. MCLA 432.105(1).

The statutory plan limits licenses only to qualified organizations, which are defined as bona fide religious, educational, service, senior citizens, fraternal, or veterans organizations operating without profit to their members and in existence continuously for five years or exempt from taxation under specified statutes. MCLA 432.103(6). The Commissioner of the Bureau of State Lottery may also exercise control over landlords who lease their halls to qualified organizations for charitable bingo. Daniels v. State, Bureau of State Lottery, 98 Mich. App. 628, 296 N.W.2d 324 (1980).

7.2.2.1.Religious Organizations

Religious organization means an organization, church, body of communicants, or group, not for pecuniary profit, gathered in common membership for mutual support and edification in piety, worship, and religious observances; any society, not for pecuniary profit, of individuals united for religious purposes at a definite place; or a church related private school, not for pecuniary profit. MCLA 432.103(7).

7.2.2.2.Educational organizations

Educational organization means an organization within the State of Michigan, not for pecuniary profit, whose primary purpose is educational in nature and designed to develop the capabilities of individuals by instruction in any public or private elementary or secondary school that complies with the revised school code,or any private or public college or university, not for pecuniary profit, and approved by the state Board of Education. MCLA 432.103(1).

7.2.2.3.Service organizations

"Service organization" means either of the following: (1) a branch, lodge, or chapter of a national or state organization that is organized not for pecuniary profit and is authorized by its written constitution, charter, articles of incorporation, or bylaws to engage in a fraternal, civic, or service purpose within the state; or (2) a local, civic organization that is organized not for pecuniary profit; that is not affiliated with a state or national organization; that is recognized by resolution adopted by the local governmental division in which the organization conducts its principal activities; whose constitution, charter, articles of incorporation, or bylaws contain a provision for the perpetuation of the organization as a nonprofit organization; whose entire assets are pledged to charitable purposes; and whose constitution, charter, articles of incorporation, or bylaws contain a provision that all assets, real property, and personal property shall revert to the benefit of the local governmental division that granted the resolution upon dissolution of the organization. MCLA 432.103(9).

7.2.2.4.Senior citizens organizations

A senior citizens organization means an organization within the State of Michigan, not for pecuniary profit, that consists of at least 15 members who are 60 years of age or older and that exists for their mutual support and advancing the causes of elderly or retired persons. MCLA 432.103(8).

7.2.2.5.Fraternal organizations

A fraternal organization means an organization within the State of Michigan, except college fraternities or sororities, not for pecuniary profit, that is a branch, lodge, or chapter of a national or state organization and exists for the common business, brotherhood, or other interests of its members. MCLA 432.103(2).

7.2.2.6.Veterans organizations

The term veterans' organization means an organization within this state, or a branch, or lodge, or chapter within this state of a state organization or of a national organization chartered by the Congress of the United States, not for pecuniary profit, the membership of which consists of individuals who were members of the armed services or forces of the United States. MCLA 432.103(10).

A large or small bingo license may be reissued annually upon the submission of an application for renewal and the payment of a license fee. MCLA 432.105(1). Furthermore, a large or small bingo license is valid for not more than one day per week, and it is not assignable or transferable. MCLA 432.105(3), MCLA 432.104a(5).

A willful violation of the Bingo Act constitutes a misdemeanor subject to fine or imprisonment. MCLA 432.117.

7.2.3. Suspension or Revocation of license

The Commissioner of the Bureau of State Lottery may suspend or revoke a license for a violation of the Bingo Act. MCLA 432.116(1).

Any proceeding to suspend or revoke a license is considered a contested case. MCLA 432.116(2).Pending investigation, the Commissioner may suspend a license for a period not to exceed 60 days. MCLA 432.116(1).

Subpoenas may be issued by the circuit court, upon petition of the Commissioner, to compel the attendance of witnesses or the production of documents. MCLA 432.116(3).

A licensee whose license is revoked in consequence of a violation of the Bingo Act or a rule promulgated under it is ineligible to reapply for a license for a period of two years after the revocation. MCLA 432.118(1).

7.2.4. Millionaire Party

A millionaire party is an event at which wagers are placed upon games of chance customarily associated with a gambling casino through the use of imitation money or chips, which have a nominal value that is equal to or greater than the value of the currency for which it is exchanged or is exchangeable. MCLA 432.103a(8).

The Bureau of State Lottery must enforce and supervise the administration of bingo, millionaire parties, and charity games and must employ personnel as necessary for that purpose. MCLA 432.112.

Minors, that is, persons under the age of 18, are not permitted to wager at millionaire parties MCLA 432.110a(a).

7.2.4.1.Prizes

The amount of prizes or merchandise to be awarded in millionaire parties is limited by statute. MCLA 432.110a(e) However, the value of raffle, charity game, and numeral game prizes awarded at the millionaire party is not subject to the statutory prize limitations. MCLA 432.110a(e).

7.2.4.2.Proceeds

The entire net proceeds of bingo and millionaire games are to be devoted exclusively to the lawful purposes of the licensee. MCLA 432.109. The expenses that a licensee may deduct from the proceeds are statutorily defined. MCLA 432.109.

7.3. Chucky Cheese Gaming Exemptions
7.4. Commercial gaming – casino/ slots
7.5. Lottery

A Lottery is commonly defined as a gambling game or method of raising money in which a large number of tickets are sold and a drawing is held for prizes, a drawing of lots, and any happening or process that is or appears to be determined by chance: life is a lottery. F.A.C.E. Trading, Inc. v. Dep't of Consumer & Indus. Servs., 270 Mich. App. 653 (Mich. Ct. App. 2006) A lottery is a scheme by which a result is reached by some action or means taken, and in which result man's choice or will has no part, nor can human reason, foresight, sagacity, or design enable him to know or determine such result until the same has been accomplished. People v. Elliott, 74 Mich. 264, 268 (Mich. 1889)

There is a difference between the games of "beano," "keno" and "lotto." People v. Welch, 269 Mich. 449, 450 (Mich. 1934) The often asserted essentials of a lottery are consideration, prize, and chance. People v. Welch, 269 Mich. 449 (Mich. 1934)

Mich. Comp. Laws § 750.372(1) provides that a person must not set up or promote within Michigan any lottery or gift enterprise for money. F.A.C.E. Trading, Inc. v. Dep't of Consumer & Indus. Servs., 270 Mich. App. 653 (Mich. Ct. App. 2006)

While consideration, prize and chance are often common factors found in a lottery, the Michigan Supreme Court has noted that the term "lottery" must be construed broadly: the word "lottery" must be construed in the popular sense, with the view of remedying the mischief intended to be prevented, and to suppress all evasions for the continuance of the mischief. The word lottery is generic. No sooner is it defined by a court than ingenuity evolves some scheme within the mischief discussed, but not quite within the letter of the definition given. This is made very apparent in the large number of cases which the court has examined in which various methods of distributing money or goods by chance are examined and discussed. F.A.C.E. Trading, Inc. v. Dep't of Consumer & Indus. Servs., 270 Mich. App. 653 (Mich. Ct. App. 2006)

The Commissioner of the Bureau of State Lottery operates the state lottery. MCLA 432.9. The Commissioner is empowered to promulgate rules concerning:
(1) the type of lottery to be conducted;
(2) the price of tickets;
(3) the number and size of prizes;
(4) the manner of selecting winners;
(5) the manner of payment of prizes;
(6) the frequency of drawings; and
(7) the type of locations in which tickets may be sold. MCLA 432.11.

A gambling activity in which players may win prizes by correctly predicting the outcome of sporting events does not constitute a "lottery" under the McCauley-Traxler-Law-Bowman-McNeely Lottery Act, and, accordingly, the Michigan Bureau of State Lottery does not have the statutory authority to institute such a game or activity. MIJUR GAMBLING § 14
The price of lottery tickets may not be greater than that fixed by rule of the Commissioner, and no person other than a licensed lottery sales agent may sell lottery tickets or shares. MCLA 432.27(1).

Lottery tickets or shares may not be sold to anyone under the age of 18, but a person may purchase the same for the purpose of making a gift to someone under the age of 18. MCLA 432.29. Additionally, providing that a licensee who knowingly sells or offers to sell a lottery ticket or share to a person under the age of 18 is guilty of a misdemeanor. Moreover, the Commissioner of the Bureau of State Lottery may not enter into a contract aimed at promoting the lottery if that promotion is directed toward persons under the age of 18; any contract entered into for this purpose is void as being contrary to the public policy. MCLA 432.29.
Officers and employees, and their related household members, are prohibited from purchasing lottery tickets or from participating in the payment of any prize. MCLA 432.31.

A gambling activity in which players may win prizes by correctly predicting the outcome of sporting events does not constitute a "lottery" under this act and, accordingly, the Michigan Bureau of State Lottery does not have the statutory authority to institute such a game or activity. Op.Atty.Gen.1990, No. 6655, p. 367, 1990 WL 525920

Under a proper interpretation of the rules governing the "Super Drawing" held by the State Lottery Bureau, the section providing that "The number in the envelope alongside each prize determines which contestant receives that prize" determined the identity of the winner, whereas the next section, providing that "Both contestants come on stage and the envelope alongside the $200,000 prize is opened and the prize awarded. Then the remaining envelope is opened and the last $50,000 prize is awarded," determined the procedure for awarding the prize. Coleman v. State (1977) 258 N.W.2d 84, 77 Mich. App. 349.

7.5.1. Promotion

The Commissioner of the Bureau of State Lottery may enter into contracts for the operation or promotion of the lottery. MCLA 432.18.

The Commissioner does not have the authority to enter into a contract to engage in a public relations campaign that does not directly promote the lottery; any contract entered into for such a purpose is void as exceeding the statutory authority of the Commissioner. MIJUR GAMBLING § 15

7.5.2. Joint lotteries

The Commissioner of the Bureau of State Lottery is authorized to participate in joint lottery enterprises with other sovereignties pursuant to criteria established in the Lottery Act, as long as the joint enterprise is designed to produce the maximum amount of net revenues for the state. MCLA 432.9(3).

The Commissioner may only participate in a joint enterprise agreement that provides that the Commissioner may discontinue participation in the agreement if he or she determines it to be necessary. MCLA 432.9(3).

7.5.3. Prizes

A lottery winner's entitlement to a prize is governed by the principles of contract law. Paulsen v. Bureau of State Lottery, 167 Mich. App. 328, 421 N.W.2d 678 (1988). A winning ticket in the state lottery must be presented to the Bureau of State Lottery in order for the winnings to be received. Ramirez v. Bureau of State Lottery, 186 Mich. App. 275, 463 N.W.2d 245, 13 U.C.C. Rep. Serv. 2d 827 (1990). The provisions of the Uniform Commercial Code generally relating to lost negotiable instruments do not apply to a claim by a person who is unable to present a winning ticket to the Bureau of State Lottery or its agents. Furthermore, equitable relief is not available in an action against the Bureau of State Lottery brought by a person who claims to have lost a winning lottery ticket because the law requiring the presentment of the winning lottery ticket to the Bureau or its agents for receipt of lottery winnings is clear. Ramirez v. Bureau of State Lottery, 186 Mich. App. 275, 463 N.W.2d 245, 13 U.C.C. Rep. Serv. 2d 827 (1990).
Upon the payment of a prize, the Commissioner of the Bureau of State Lottery is discharged of all further liability to a lottery winner. MCLA 432.25(2).

7.5.3.1. Unclaimed Prize Money

Unclaimed prize money for the prize on a winning ticket or share of the state lottery shall be retained by the commissioner for the person entitled to the prize money for 1 year after the drawing in which the prize was won. If a claim is not made for the prize money within the year, the prize money shall be deposited in the state school aid fund and distributed pursuant to law. M. C. L. A. 432.32

Unclaimed prize money for the prize on a winning ticket or share of any joint enterprise shall be treated in the manner provided for in the joint enterprise participation agreement executed by the commissioner. To the extent that the state of Michigan is entitled to any unclaimed prize money, that money received shall be deposited into the state school aid fund and distributed pursuant to law. M. C. L. A. 432.32

7.5.3.2. Assignment of Prizes

The right of any person to a prize drawn is not assignable, except to a person pursuant to an appropriate judicial order, to the state, to a surviving spouse and/or children, or to the winner's estate. MCLA 432.25(2)
In determining whether to allow an assignment of lottery winnings under the statutory exception to the general prohibition on the assignment of lottery prizes, the court will consider whether the assignment is reasonable and in the best interests of the state and the prizewinner. Watson v. Michigan Bureau of State Lottery, 224 Mich. App. 639, 569 N.W.2d 878 (1997).

Statutes providing judgment creditors with access to a decedent's estate were not applicable to attempts by creditors of a lottery winner, who died intestate, to garnish continuing payments of winnings; under another statute, those payments would go directly to the winner's immediate family members and would, therefore, never be part of the estate. MCLA 432.25, Michigan Basic Property Ins. Ass'n v. Ware, 230 Mich. App. 44, 583 N.W.2d 240 (1998).

7.5.3.3.Unclaimed Lottery Prize Money

Any unclaimed prize money is retained by the Commissioner of the Bureau of State Lottery for one year after the drawing in which the prize is won; if a claim is not made within that time, the money is deposited in the state school aid fund. MCLA 432.33.

7.5.4. Licensing of Lottery sales ticket agents

Before issuing a license, the Commissioner of the Bureau of State Lottery is directed by statute to consider:
(1) the financial responsibility and security of the license applicant and his or her business or activity;
(2) the accessibility of the applicant's place of business to the public;
(3) the sufficiency of existing licenses to serve the public convenience; and
(4) the volume of expected sales. MCLA 432.23(1).

Licenses to act as agents to sell lottery tickets or shares may not be issued to any person to engage in business exclusively as a lottery sales agent. MCLA 432.23(1).

A license to sell lottery tickets or shares is not assignable or transferable. MCLA 432.23(4). A licensed agent or employees of the agent may sell lottery tickets or shares only on the premises listed in the license. MCLA 432.23(5). The agent must display his or her license in a conspicuous place in accordance with prescribed rules. MCLA 432.23(8).

7.5.5. Taxes Liabilities

In calculating taxable income, a taxpayer may not subtract state lottery winnings from adjusted gross income. MCLA 206.30(6).
State lottery prize proceeds, including the right to transfer and receive an inheritance of those proceeds, are exempt from inheritance tax, at least with regard to the estates of persons who purchased lottery tickets before September 14, 1983. In re D'Amico Estate, 435 Mich. 551, 460 N.W.2d 198 (1990).
The winner of any prize greater than $1,000 who has a current liability to the state or a support arrearage will have that liability deducted from the prize amount in the order provided by statute. MCLA 432.32(1). A lottery winner will receive notice and an opportunity for a hearing before the Department of Treasury or its designee with respect to the liability to which the prize is to be applied where the liability: (1) has not been reduced to judgment; or (2) has not been finalized under statutory review provisions of the statute under which the liability arose. MCLA 432.32(1).

7.6. Horse Racing

There is no constitutional prohibition against horse racing and betting thereon. Rohan v. Detroit Racing Ass'n, 314 Mich. 326, 22 N.W.2d 433 (1946). Under pari-mutuel system of betting on horse race, fact that better cannot determine exact amount he may win when he places his bet, because odds may change during course of betting, does not make betting mere game of chance, since better can exercise his judgment in selecting horse he thinks will win. Rohan v. Detroit Racing Ass'n, 314 Mich. 326, 22 N.W.2d 433 (1946).

It is within the police power of the state to regulate and control wagering on horse races to maximize its safety and integrity. People v. Lueth, 253 Mich. App. 670, 660 N.W.2d 322 (2002). Indeed, horse racing, because of its association with legalized gambling, is an activity requiring b police regulation to protect the public. Berry v. Michigan Racing Com'r, 116 Mich. App. 164, 321 N.W.2d 880 (1982).Under the Horse Racing Law of 1995 MCLA 431.301 to 431.336. which authorizes the state Racing Commissioner to issue race meeting licenses to persons or other legal entities proposing to conduct horse racing meetings,a pari-mutuel system of wagering by patrons at horse racing meets is permitted in Michigan. MCLA 431.308. This pari-mutuel system of wagering shall not be held or construed to be unlawful. MCLA 431.317(1)

A person may not participate in racing involving wagering of any kind except as permitted under this Act. MCLA 431.317(2). The Horse Racing Law of 1995 permits the holder of a race meeting license to provide a place at race meeting grounds or another enclosure in which pari-mutuel wagering may be conducted. MCLA 431.317(2). The licensee may retain as his or her commission 17% of all money wagered. MCLA 431.317(3).However, where forms of multiple wagering are conducted, the licensee's commission is, without the written permission of the Racing Commissioner, not more than 28% and, with the written permission of the Racing Commissioner, not more than 35% of all money wagered involving any form of multiple wager on the results of live and simulcast horse races conducted at the licensee's race meeting. MCLA 431.317(3).
The payoff prices of winning tickets, and the minimum sum of moneys deposited in the pari-mutuel pools that must be distributed to persons holding winning tickets, must be determined according to calculations provided by statute. MCLA 431.317(5). Racetracks at which pari-mutuel wagering is conducted are required to use a totalisator, or other mechanical device of equal accuracy and clearness, and to display the same in full view of the racetrack patrons. MCLA 431.317(2).

7.6.1. Auditing

The Horse Racing Law of 1995 mandates the auditing of pari-mutuel operations at each race meeting MCLA 431.323(1). and empowers the auditors, who represent the state, to right of entry to: (1) all spaces and enclosures where the pari-mutuel system of wagering is conducted; (2) the calculating room where the payoff prices are calculated; (3) the enclosures housing the totalisator equipment; and (4) the money rooms and cashier terminals. MCLA 431.323(2). The auditors may audit internally and externally any or all parts and elements of the totalisator system, whether on or off the site of the race meeting grounds. MCLA 431.323(2). If the records are maintained in a machine-readable form, such as computer tapes or disks, copies shall be made available to the auditors on request. MCLA 431.323(2).
The auditors, in addition to their regular reports, must make prompt report to the Racing Commissioner, the state Treasurer, and the holder of the race meeting license of any irregularities or discrepancies that they may encounter during their auditing. MCLA 431.323(2). In addition to auditing the pari-mutuel operations, the auditors shall include in their final reports the daily attendance figures as supplied by the holder of the race meeting license. MCLA 431.323(3).

7.6.2. Prohibited Acts

No act or transaction relative to wagering is permitted outside the enclosure of the race meeting grounds, and no person may place, or carry a wager for placement, outside of the race meeting grounds. MCLA 431.317(7). Likewise, messenger services for the placing of bets for another person who is not a patron of the racetrack are expressly forbidden. MCLA 431.317(7)

The provision forbidding wagering outside a race enclosure does not prevent simulcasting or intertrack or interstate common-pool wagering inside or outside the state, as permitted by the Horse Racing Law of 1995 or its related regulations. MCLA 431.317(7).

Persons less than 18 years of age are prohibited from engaging in pari-mutuel wagering. MCLA 431.317(6).
Holders of race meeting licenses are prohibited from disseminating racing information that might be of benefit to persons operating illegal handbooks or other illegal gambling enterprises, including the changes in odds that may take place during the period of wagering in advance of each race. MCLA 431.324.

However, this does not prevent the accredited representatives of newspapers, turf publications, newspaper press services, radio and television networks and stations, and other news- and sports-reporting media from promptly reporting from the racetrack the results of races, payoff prices on winning tickets, entries, claims, and other information concerning the actual running of races and training activities. MCLA 431.324.

No drug or painkiller that constitutes a stimulant or depressant to a horse may be administered to a horse intended to be entered in a race with wagering by pari-mutuel methods or workout that is conducted at a licensed race meeting in this state. MCLA 431.330(1).Other drugs may be administered to a horse entered in a pari-mutuel race or any non-betting race or workout only when authorized by the Racing Commissioner for use in the care and treatment of the horse. MCLA 431.330(1).
Influencing or attempting to influence the result of a race (1) by offer of money or other thing of value, (2) by any form of pressure or threat, or (3) by seeking or having an agreement, understanding, or conniving with any owner, jockey, driver, trainer, groom, valet, agent, or other person associated with or interested in any stable of horses, horse, or race or workout in which the horse participates, constitutes a felony punishable by fine or imprisonment. MCLA 431.332. Other violations of the Horse Racing Law of 1995 or of the rules promulgated under it constitute a misdemeanor. MCLA 431.329.

7.7. Other pari-mutuel

8. Specific Internet prohibition
9. Penalties for unlawful gambling

9.1. Player versus operator

Mich. Comp. Laws § 750.303 provides in part that a person who for hire, gain, or reward, keeps or maintains a 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 two years, or a fine of not more than $ 1,000.00. Section 750.303(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 device at no additional cost if the mechanical amusement device is not allowed to accumulate more than 15 replays at one time; the device is designed so that accumulated free replays may only be discharged by reactivating the device for one additional play for each accumulated free replay; and the device makes no permanent record, directly or indirectly, of the free replays awarded. Primages Int'l of Mich. v. Liquor Control Comm'n, 199 Mich. App. 252 (Mich. Ct. App. 1993)

9.2. Misdemeanor versus felony
9.3. Simple versus aggravated

10. State of Anne/ recover of debts

Any person who loses 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 pay or deliver the same or any part thereof to the winner, and must 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. MCLS § 750.315

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 recover 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. M.C.L.A. 600.2939
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 therefore is commenced within 6 months after the committing of the offense. M.C.L.A. 600.2939
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. M.C.L.A. 600.2939
Whenever any mortgage or other conveyance of land is adjudged void under (3), such lands shall ensure 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 ensure, 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. M.C.L.A. 600.2939

Contracts giving exclusive right to own and operate pinball or other coin-operated amusement machines, which constituted gaming devices because of fact that amusement given was chance to get either money or free games, is void as being against public policy. Gibson v. Martin (1944) 13 N.W.2d 252, 308 Mich. 178.. Where a commercial "operation" is a purely gambling transaction and understood to be so by both parties, neither can sue the other on it. Gregory v. Wendell (1879) 40 Mich. 432

Michigan's public policy against gambling prohibited payee from collecting on money orders that were paid to discharge a gambling debt in New Jersey, even though the gambling was not unlawful in New Jersey and Michigan has established exceptions, such as state lottery, to antigambling policy, and despite contention that money orders, functioning as cash equivalents, are not the type of instruments invalidated under this section, which refers to "notes, bills, bonds, mortgages or other securities or conveyances"; money order falls under definition of a "bill of exchange." Boardwalk Regency Corp. v. Travelers Exp. Co., Inc., E.D.Mich.1990, 745 F.Supp. 1266.

Foreign judgment on checks written by drawer in foreign state to obtain chips which he used in gambling was enforceable in Michigan, though repugnant to public policy of state, pursuant to Full Faith and Credit Clause. International Recovery Systems, Inc. v. Gabler (1994) 527 N.W.2d 20, 208 Mich. App. 49, 210 Mich. App. 422, on rehearing.

Gambling is contrary to public policy in Michigan and gambling debts are unenforceable in Michigan courts. International Recovery Systems, Inc. v. Gabler (1994) 527 N.W.2d 20, 208 Mich. App. 49, 210 Mich. App. 422, on rehearing. Gaming 19(1)
Statute providing a civil remedy to gamblers for money lost "by playing or betting on cards, dice or by any other device in the nature of such playing or betting" did not enable players of electronic golf game to recover from supplier of the game the money they lost while participating in contest that also provided an opportunity to win money, even if contest constituted illegal gambling; golf game was a "gambling game" to the extent it was played for money, such that any claim for recovery of gambling losses under statute was preempted by the Gaming Control and Revenue Act. McEntee v. Incredible Technologies, Inc. (2006) 2006 WL 659347,
Players of electronic golf game who lost money while participating in gambling contest involving game could not bring action against supplier of game under Consumer Protection Act; golf game was subject to the exclusive regulatory authority of Gaming Control Board to the extent it was played for money, and Consumer Protection Act exempted any transaction or conduct specifically authorized under laws administered by a regulatory board. McEntee v. Incredible Technologies, Inc. (2006) 2006 WL 659347, Unreported.

In an action to recover money lost at gaming, the evidence was sufficient to go to the jury on the issue whether defendant was the "winner" within the meaning of CL 1915, § 7795, providing for an action for the recovery from the winner of money so lost, where it was shown that he was the lessee of the premises in which the money was lost in a dice game and conducted a cigar store on the first floor and that a gambling resort was conducted on the second floor and that tended to connect him with the management and operation of the games conducted on the second floor. Niemi v. Brady, 230 Mich. 217, 203 N.W. 124 (1925).

A lottery winner's entitlement to a prize is governed by principles of contract law. Coleman v. Bureau of State Lottery, 77 Mich. App. 349, 258 N.W.2d 84 (1977). Equitable relief is not available in an action against the Bureau of State Lottery brought by a person who claims to have lost a winning lottery ticket because the law requiring the presentment of the winning lottery ticket to the bureau or its agents for receipt of lottery winnings is clear. Ramirez v. Bureau of State Lottery, 186 Mich. App. 275, 463 N.W.2d 245 (1990).

11. If lawful commercial casino gaming:

Michigan permits gambling in some forms in the state and allows casino gambling on a limited level; therefore, because the public policy of the state does not prohibit completely casino gambling, a school to teach the limited lawful purpose of casino gambling does not contravene public policy. Michigan Gaming Institution, Inc. v. State Board of Education, 211 Mich. App. 514, 536 N.W.2d 289 (1995).

Michigan Gaming Control Board

The Michigan Gaming Control and Revenue Act authorize casino gambling within the state to the extent that it is carried out in accordance with the Act. MCLA 432.201. The legislature has vested the Gaming Control Board with exclusive jurisdiction over all matters relating in any way to the licensing, regulating, monitoring, and control of the non-Indian casino industry, including with respect to the factual issue whether a person or entity is a casino supplier so that licensing is required under the Gaming Control and Revenue Act. Papas v. Michigan Gaming Control Bd., 257 Mich. App. 647, 669 N.W.2d 326 (2003). States that permit gambling activities, subject to regulation, may not prohibit casino gambling on Indian reservations. Taxpayers of Michigan Against Casinos v. State, 254 Mich. App. 23, 657 N.W.2d 503 (2002), appeal granted, 669 N.W.2d 816 (Mich. 2003), citing 25 U.S.C.A. §§ 2701 et seq.

A person may apply to the Gaming Control Board for a casino license to conduct a casino-gambling operation as provided in the Michigan Gaming Control and Revenue Act. MCLA 432.205(1).The application must be made under oath on forms provided by the Board and must contain information as prescribed by the Board. MCLA 432.205(1).

License

The Board will issue a casino license to a person: (1) who applies for a license; (2) who pays the nonrefundable application fee and a license fee for the first year of operation; and (3) whom the Board determines is eligible and suitable to receive a casino license under the Michigan Gaming Control and Revenue Act and the rules promulgated by the Board. MCLA 432.206(1). It is the burden of the applicant to establish, by clear and convincing evidence, its suitability as to character, reputation, integrity, business probity, experience, and ability, financial ability and responsibility, and other criteria as may be considered appropriate by the Gaming Control Board. MCLA 432.205(1).

Licensed persons will not permit any form of wagering on gambling games except as permitted by the Michigan Gaming Control and Revenue Act. MCLA 432.209(5).

Minimum and maximum wagers on games will be set by the Gaming Control Board. MCLA 432.209(1). Wagers may be received only from a person present in a licensed casino. MCLA 432.209(6). A person present in a licensed casino must not place or attempt to place a wager on behalf of another person who is not present in the casino. MCLA 432.209(6). Wagering cannot be conducted with money or other negotiable currency. MCLA 432.209(7).All tokens, chips, or electronic cards used to make wagers must be purchased from a licensed owner in the casino. MCLA 432.209(8).

Supplier’s License

Entities that provide gaming devices and equipment to casinos-such as cards, chips, dice, roulette wheels, slot machines, table layouts, and tokens-also must be licensed. Prospective suppliers are subjected to investigations similar to those conducted on prospective casino operators. Many states also require regular reporting on sales activity and financial status. Mich. Comp. Laws §§ 432.209(4), . Gaming suppliers are subject to regulation and license requirements. MCLA 432.204a(c), Gaming suppliers include, but are not limited to, "junket enterprises, security businesses, manufacturers, distributors, persons who service gaming devices or equipment, garbage haulers, maintenance companies, food purveyors, and construction companies." MCLA 432.202(gg).As stated, even gaming-food suppliers are subject to regulation MCLA § 432.207a.

Gaming Equipment

The tokens, chips, or electronic cards may be purchased by means of an agreement under which the owner extends credit to the patron. MCLA 432.209(8). Such tokens, chips, or electronic cards may be used only while in a casino and only for the purpose of making wagers on gaming games. MCLA 432.209(8). Gambling equipment and supplies customarily used in conducting casino gambling must be purchased or leased only from licensed suppliers. MCLA 432.209(4).

11.1. Games – what type of games are permitted and prohibited?

While general law in Michigan prohibits gambling, many gambling activities are legal after proper licensing by state, such as horse racing, bingo, millionaire parties and charity games, gambling on boxing and wrestling events, games of chance at annual Michigan state fair and state sponsored lottery, and therefore, express public policy of Michigan is to promote "legal" gambling (MSA §§ 12.1280(62), 18.425(814), 18.966(5), 18.966(42), 18.969(1) et seq., 18.969(101) et seq., 28.533 et seq.; MCLS §§ 285.172, 339.814, 431.72, 431.80, 432.1 National Recovery System v. Kasle, 662 F. Supp. 139 (1987).

In order for a Detroit casino to offer any game, the game must be authorized by the Gaming Board. The types of games offered faro, monte, roulette, keno, bingo, fan tan, twenty one, blackjack, seven and a half, Klondike, craps poke, chuck a luck Chinese a luck, wheel of fortune, paiuingui, beat the banker, slot machines, and banking or percentage games. The Gaming Board may approve addition games and devices. Sports books and off track betting are not permitted under Michigan Law. By Statute, operators of casinos may not televise or allow an other to televise simulcast horse race (either inside or outside of the state) on the premises of the casino. (Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC)

11.2. Limits – What are the limits on bet size, payouts, loss limits, etc?

Licensed persons will not permit any form of wagering on gambling games except as permitted by the Michigan Gaming Control and Revenue Act. MCLA 432.209(5). Minimum and maximum wagers on games will be set by the Gaming Control Board. MCLA 432.209(1). Wagers may be received only from a person present in a licensed casino. MCLA 432.209(6).

11.2.1. Location

Unless approved by the city, a casino shall not be located within 1,000 feet of:

• a church or other place of worship
• a school, college, or university
• a financial institution or a branch of a financial institution
  A "financial institution" is a state- or nationally chartered bank, a state- or federally chartered savings and loan association, a state- or federally chartered savings bank, a state- or federally chartered credit union, or any entity that provides check-cashing services. MCLA 432.209(12).
• a pawnshop MCLA 432.209(12).

11.3. Taxes and Fees

A wagering tax is imposed on the adjusted gross receipts received by the licensee from gaming authorized under this act at the rate of 18%. If a cityexerciseseither, the tax rate under this subsection shall be 8.1% and deposited in the state school aid fund to provide additional funds for K-12 classroom education. If the city rescinds or is otherwise unable to exercise, the tax rate under this subsection shall be 18%. A tax rate of 18% imposed shall cover any period for which the city does not or is unable to exercise 1 of the options in subsection (4). MCLS § 432.212

In addition to the 18% wagering tax and additional 6% wagering tax imposed on the casinos. The additional tax is divided between the state (4%) and the City (2 %) Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC

11.3.1. Fees

In addition to payment of the state or city wagering tax and other fees as set forth in this act, and to any payment required pursuant to the development agreement, a city may impose a municipal services fee upon each licensee located in the city equal to the greater of 1.25% of adjusted gross receipts or $4,000,000.00 in order to assist the city in defraying the cost of hosting casinos. The city may require a municipal services fee of $4,000,000.00 to be paid annually, in advance, commencing on the date the casino opened for operations and on the anniversary of that date thereafter. Within 20 days after each anniversary of the date the licensed casino opened for operations, the licensee shall pay any additional municipal services fee owning for the operating year just ended above the advance previously paid for that operating year. The municipal services fee shall be deposited by the city in its general fund for disbursement in accordance with the restrictions of this section and applicable municipal ordinances. The city may submit the question of whether to impose the fee authorized by this subsection to the electors of the city for approval.MCLS § 432.213
If a city does not impose a municipal services fee, in addition to payment of the state or city wagering tax and other fees as set forth in this act, there is imposed by the state a municipal services tax upon each licensee located in the city. The rate of the tax imposed by this subsection shall be established to limit the aggregate annual amount of the tax imposed by the state upon each licensee to the greater of 1.25% of adjusted gross receipts or $4,000,000.00. The tax imposed by this subsection shall be paid in the same manner and at the same times as the fee imposed by the city. The revenues received from the imposition of the tax imposed by this subsection shall be remitted to the city and deposited by the city in its general fund for disbursement for the purposes permitted for a fee. MCLS § 432.213

11.4. Operational requirements,

Employees of the Gaming Control Board, the Department of State Police, and the Department of Attorney General may inspect any casino at any time, without notice, for the purpose of determining whether the Gaming Control and Revenue Act or rules promulgated by the Board are being complied with. MCLA 432.209(2). Furthermore, employees of the Board, the Department of State Police, and the Department of Attorney General, and their authorized agents, have the right to be present, at any time, in the casino or on adjacent facilities under the control of the licensee. MCLA 432.209(3).

Managerial employees of casino licensees are under an affirmative duty to report to the Board, and to the Michigan State Police, in writing, within 24 hours, illegal or suspected illegal activity or activity that is in violation of the Gaming Control and Revenue Act or of rules promulgated by the Gaming Control Board. MCLA 432.209(10).

11.4.1. hours

Gain is authorized 24 hours a day, 7 days a week. Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC

11.4.2. advertising

There are no rules restricting casino advertising.

11.4.3. entertainment

There are no rules regulating the types of entertainment that may be provided in casinos.

11.4.4. exclusion
11.4.5. gambling age

A person under age 21 is not permitted to make wagers and is not permitted in an area of a casino where gaming is being conducted, except for a person at least 18 years of age who is an employee of the gaming operation. MCLA 432.209(9). An employee under the age of 21 cannot perform any function involved in gambling by the patrons. MCLA 432.209(9).

11.4.6. mandatory exclusions

A casino licensee may not employ an individual as a managerial employee to work in a casino where such individual has been convicted of a felony in the previous five years. MCLA 432.209(14).
Michigan recognizes that gambling may become an addiction, and understands that big corporate interests do not always parallel with an individual struggling with addiction. However, individuals may seek relief from permissive policies by voluntarily excluding themselves from gambling facilities. MCL 432.225.
Michigan has adopted legislation establishing voluntary self exclusion lists for problem gamblers. Michigan uniquely developed and implemented of its their own program. MCLS § 432.225All persons wishing to join the self exclusion list must provide identification credentials. MCLS § 432.225
The program only allow the person wishing to enter the program to put themselves on the list. MCLS § 432.225. With the exclusion of an extreme circumstance, the programs also require the person to physically meet with gaming personnel in order to complete the procedure. MCLS § 432.225 Once a person has provided all necessary information and is listed on the state's program, the gaming commission or program administrator provides the information to the licensed casinos throughout the state. MCLS § 432.225
Michigan has adopted provisions that protect the excluded individual's right to privacy by having their information exempt from disclosure. MCLS § 432.225 These provisions regulate that information only be given to facilities under the jurisdiction of the gaming board or state agency and only then to agents of the facilities who are involved in the maintenance of the self exclusion lists or internal controls. MCLS § 432.225

Once a person is caught in violation of the self exclusion agreement, the person is removed from the gambling establishment. MCLS § 432.225 Depending on the laws in each state the person may then be prosecuted for criminal trespassing. MCLS § 432.225
Michigan actually imposes a duty on the casino to notify the prosecutor in order to establish a criminal compliant of trespassing punishable of up to a year in prison and or a $1,000 fine. Winnings and losses by the self excluded person are either confiscated or subject to forfeiture to the state gaming commission or board. MCLS § 432.225

MCLS § 432.225

11.4.7. School

Michigan permits gambling in some forms in the state and allows casino gambling on a limited level; therefore, because the public policy of the state does not prohibit completely casino gambling, a school to teach the limited lawful purpose of casino gambling does not contravene public policy. Michigan Gaming Institution, Inc. v. State Board of Education, 211 Mich. App. 514, 536 N.W.2d 289 (1995).

11.4.8. discretionary exclusions

Casino licensees are permitted under Gaming Act and the Gaming Rules to eject or bar persons for reasons they deem necessary.( Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC )

11.4.9. voluntary exclusions by problem gamblers

We recognize that gambling may become an addiction, and corporate interests do not align with an individual struggling with addiction. However, individuals may also seek relief from permissive policies by voluntarily excluding themselves from gambling facilities, see MCL 432.225. Implementation of Michigan's Compulsive Gaming Prevention Fund and related Program (MCL 432.212a) and the Board's List of Disassociated Persons (MCL 432.225) for prevention and treatment of problem gambling.

11.5. Gaming contracts

Wilkie v. Weller, 222 Mich. 664, 667 (Mich. 1923) Provision that instruments given in gambling are void establishes public policy of Michigan against gambling contracts or conveyances, including money orders as coming within definition of credit, bills, and bills of exchange specified in statute. Boardwalk Regency Corp. v Travelers Express Co. (1990, ED Mich) 745 F Supp 1266. Michigan gambling statute reciting that instruments given in gambling are void establishes public policy of Michigan against gambling contracts or conveyances, including money orders as coming within definition of credit, bills, and bills of exchange; MCLS § 600.2939(3)). Boardwalk Regency Corp. v. Travelers Exp. Co., Inc., 745 F. Supp. 1266 (1990).

Contract giving exclusive right to own and operate pinball or other coin operated amusement machines, which constituted gaming devices because of fact that amusement given was chance to get either money or free games, was void as being against public policy. Gibson v. Martin (1944) 13 N.W.2d 252, 308 Mich. 178. Gaming 17(2

11.6.Gaming Crimes

11.6.1. General Gaming Crimes
11.6.2. Specific Gaming Crimes

The Gaming Act defines as a felony the following activities which, if conducted, will also result in forfeiture of any license held and in rendering the person ineligible to receive a license; conducting a gambling operation without a license issued by the Gaming Board; conducting a gambling operation inconsistent with statutory provisions governing the conduct of gaming knowing making false statement on a license application; knowingly providing false testimony; willfully failing to report, pay, or truthfully account for any license fee or tax; and making a prohibited political contribution. ( Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC )

It is also a felony for a person to attempt to affect the outcome of a gambling game ; use device to project the outcome of gambling game, count cards, analyze the probability of an event or analyze the strategy for betting in a game; cheat at a game; manufacture, sell or distribute cards, chips, dice, a game or device intended to be used to violate the Act; misrepresent the outcome of a gambling game, use counterfeit chips or tokens, places a bet after obtaining knowledge of the outcome of the game, where that knowledge is not available to all the players; possess a device for affecting the operation of a gambling game, drop box, and electronic or mechanical device; or remove coins chips, tokens, or other contents of a game, This is not an exhaustive list of felonies. This list as well as others will result in the person being placed on the Gaming Board’s excluded persons list. ( Michigan, Robert W. Stocker II, Peter H. Ellisworth, and Erin J. Stovel Dickinson Wright PLLC )

The state may, pursuant to its police power, regulate places of public amusement such as dance halls. gaming rooms or apparatus, and amusement parks M.C.L.A. § 750.141 M.C.L.A. § 750.303.
The only gambling room covered by the statute is that in which unlawful games are carried on. People v. Weithoff, 51 Mich. 203, 16 N.W. 442 (1883). Games become unlawful by being prohibited by statute, and it therefore becomes necessary to a conviction that it should appear; first, that the room was kept or maintained for the purpose of games; and, second, that the games for which it was kept or maintained are unlawful. People v. Weithoff, 51 Mich. 203, 16 N.W. 442 (1883).
If a room is one used to facilitate gaming operations, where people are invited to stake money or other thing of value on trials of chance, skill or endurance, there is everything that is necessary to constitute a gaming room. People v. Weithoff, 51 Mich. 203, 16 N.W. 442 (1883).

The provision of the penal code which forbid permitting the use of a gambling apparatus on a premises is not limited to devices which are used only for gambling, but may apply to devices which are determined to have been used for gambling. People v. Lopez, 187 Mich. App. 305, 466 N.W.2d 397 (1991).

The provision which exempts from the prohibition of gaming devices a mechanical amusement device that rewards a player with up to fifteen free replays does not apply to a video poker machine that, in addition to so rewarding a player, also is used to provide cash payoffs on the basis of points accumulated in play. People v. Lopez, 187 Mich. App. 305, 466 N.W.2d 397 (1991). Leasing a house, knowing it is to be used for the purpose of gambling for money or other property, is a misdemeanor. MCLA § 750.454.

Taking, receiving, or accepting money or valuable for payment contingent upon outcome of race, contest, etc.

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. M.C.L.A. 750.301

Maintaining gaming or gambling place; permitting gaming or gambling apparatus on premises; use of gaming or gambling apparatus

Unless otherwise stated 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. This 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. M.C.L.A. 750.302.

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. MCL.750.309

Registration of bets and buying or selling of pools

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. M.C.L.A. 750.304

Racketeering

The racketeering statute, was also amended to add gambling to the list of offenses contained in the definition of racketeering and adds gambling violations to the list of "specified criminal offenses" for money laundering offenses. MCLA §§ 750.159g, subd (f),

Keeping a poolroom for selling pools on racehorses and baseball games, or a room fitted up for the purpose of furnishing information to persons to enable them to place bets on races, falls within the purview of a statute punishing the keeping or maintaining of a gambling room .People v. Weihoff, 51 Mich. 203, 16 N.W. 442 (1883).,MCLA § 750.303.