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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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