New Charity Poker Rooms Michigan

  1. Mi Charity Poker

The Michigan Gaming Control Board on Thursday announced a proposal to limit poker rooms or other locations to hosting charity poker games up to four nights a week. While that's less restrictive than a previous proposal, some say it could put poker rooms out.

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More than 140 people packed into a meeting room and an overflow space at the state Capitol on Thursday for a legislative committee hearing on rules that would limit and further regulate charitable poker operations.

(Melissa Anders | MLive)

LANSING — A lively crowd of nonprofit organization members and charity poker advocates gathered at the state Capitol to express their opposition to proposed charitable gaming rule changes.

More than 140 people packed into a meeting room and an overflow space on Thursday afternoon for a legislative committee hearing on proposed rules that would limit and further regulate so-called 'millionaire parties' that allow nonprofit groups to raise funds by hosting casino-style games such as Texas Hold 'em and blackjack.

The Michigan Gaming Control Board wants stricter rules that officials say address problems with gaming violations and violence at some permanent poker rooms while making sure charities' best interests are protected. State officials contend the law was never designed for what has become a multi-million dollar industry.

'Charitable poker began as a good cause, evolved into a highly lucrative business, and has degenerated into a racket,' said Dave Murley, deputy legal counsel for Gov. Rick Snyder.

New Charity Poker Rooms Michigan

Murley's comment elicited boos from the crowd, which included several members of Veterans of Foreign Wars, Lions Club and other nonprofits.

Charities, poker room operators, dealers and players all oppose the proposed rules, arguing that it will hurt nonprofit fundraising and result in lost jobs for dealers and other poker room employees. The Michigan Charitable Gaming Association supports legislation that would keep poker rooms open while outlining penalties for violations and ensuring accountability and transparency.

The association wants to be part of the solution, but doesn't think the proposed rules would properly address the issues, said Ron Pioch, member of the gaming association and Knights of Columbus in Grand Ledge.

Charity

Neither does Geo Marvasa, general manager at Electric Stick poker room in Westland. The room closed in May after a devastating fire.

'I don't understand how you guys are saying that this is good for charities by regulating it so much … you're not helping the charities, you're hurting them,' Marvasa said.

There are roughly 40 permanent poker rooms that partner with charities to host multiple games each day. The state recently suspended charitable gaming operations at two Flint-area poker rooms, marking 16 locations that have been shut down by the state since 2010 due to allegations of illegal gambling and other violations.

On Thursday gaming control executive director Rick Kalm said he wants to lift a moratorium on new charity poker locations that's been in place since 2011.

He also outlined his latest draft rule proposal, which would limit poker rooms or other locations to hosting no more than 120 days of millionaire party events each year and give the board's executive director authority to further limit the days for particular locations.

Locations would be limited to hosting one charity's event per day with maximum chip sales of $15,000. Some poker rooms previously ran six charities with chips sales of up to $90,000.

The rules are different from proposed changes released last month, which would have limited games to 30 days per year. Kalm originally wanted to mandate a midnight closing time for the events, but now says he may allow certain locations to stay open as late as 2 a.m. depending on the situation.

Kalm said he's listening to feedback from charities and wants to ensure they're still able to raise money through gaming. He wants charities to be more involved in the games in order to ensure the poker rooms aren't taking advantage of them.

But some charities remain worried that the rules will push out permanent poker rooms, which they rely on to provide the facilities, equipment, dealers and expertise to run the games.

The rules do not need full approval of the House and Senate. They'll go through the administrative rule process that involves a joint legislative committee with members from each chamber. A public hearing should take place next month, but a date has not yet been scheduled.

Mi Charity Poker

Email Melissa Anders at manders@mlive.com. Follow her on Google+ and Twitter: @MelissaDAnders. Download the MLive app for iPhone and Android.