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Michigan Gambling Law


by Jerry "Jet" Whittaker
Oct 4, 2006

 

 

Michigan Gambling Law

Michigan gambling law is quite strict comparison to other gambling law in US. State has different law within the state itself. Basically there are two types casino available in Michigan as Indian casino and Detroit casino. Indian casino was the first casino that got legal sanction from governor in 1993.  After that Detroit casino has made its legal move in 1996. But legalized gambling has old history in Michigan as in 1933 it was first legalized with pari-mutuel horse racing. 

In 1993, governor signed a gaming compact, which allowed the seven Indian tribes to running casino gambling. According to this compact the tribes can operate class III casino, in which they are permitted to offer slot machine, video poker and all other casino style games. As per federal law, Michigan govt. has no right to regulate activities in Indian land. But state and India tribes entered into an agreement by which states acquired some regulatory power over tribes regarding casino gambling. This agreement also specifies the distribution of revenue that is collect from casino gambling. These casinos have to pay 10 percent tax of the total income after pay out to winners, from which 8 percent goes into the state Renaissance Fund to be used for economic development, and the tribes must use 2 percent for improvements in their local communities. Later, with these seven tribes four more tribes signed the compact of governor and started another four casino in Michigan.

In 1996, Michigan approved another proposal for establishment of other three casinos in Detroit. These three casinos are non-Indian casino. According to proposal, Detroit casino has to paid 18-percent tax on the casinos’ net revenue, of which 55 percent will go to Detroit, to help pay for additional police protection and other costs, and 45 percent to the state School Aid Fund. Following this proposal in 1997 three companies got license to open casino in Detroit namely, Atwater Circus, Greektown, and MGM Grand.

Under the Public Act 239 of 1972, state lottery was introduced in Michigan which is the only source of state gambling revenue. The revenue collected from state lottery goes into School Aid Fund. Apart from these gambling activity charitable gambling activity is also legalized in Michigan. Religious, veterans’, fraternal, education, senior citizen, and service groups, as well as political committees may qualify to run fund-raising events using these games.

Michigan gambling law imposes restriction on age of gambling. Generally 21 years is the minimum age for commercial gambling. In some casinos 18 years is the minimum age but they are not allow to consumption of liquor in the casino.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


                                      

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