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Michigan Charity Poker Case Continues To Play Out

'Emergency Rules' That Hurt Charity Poker Expire This Summer

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Charity poker in Michigan has been limited over the past year or so, but concern over the rules are still the driving force behind a lawsuit that continues to unfold.

According to Detroit News, lawyers for the state as well as the Michigan Charitable Gaming Association were in court Tuesday regarding the complex restrictions that were put into place by the state last year. The so-called “emergency rules” shut down full-scale charity poker rooms in the state, though any given charity can still have poker as a revenue stream 16 nights a year.

Another thing that killed the charity poker rooms was the $15,000 limit on chip sales for a single day. In other words, there’s a cap on the total value of the buy-ins.

The rules expire this summer, and it’s unclear what the charity poker industry in the state will look like after that. Charitable groups in the state want to continue to be allowed to partner up with for-profit groups that have experience running poker games. The charities don’t want to have to run poker on their own. Many fear that these types of partnerships could be banned.

According to the report, over the past 10 years revenues from these “Millionaire Party” licenses increased from $7.9 million in 2004 to $197 million in 2011.

Michigan stepped in and said it wanted to regulate them once they grew so big.

The state wants charity gaming to continue, but doesn’t want permanent card rooms, even if a charity group is splitting revenues 50-50 with the licensed poker supplier. Many see the rules as regulation overstepping its boundaries and killing jobs.