This is a copy of the email sent out by the Michigan Charitable Gaming Association.
Ingham County Circuit Court Judge Clinton Canady III on Thursday issued a temporary injunction against the Michigan Gaming Control Board and its Executive Director preventing them from implementing so-called “regulatory updates” which attempted to restrict charities’ fundraising without following state law.
The lawsuit was filed by a group of 19 charities representing veterans, children, seniors, domestic violence prevention, and other service organizations. All these volunteer groups rely on charity gaming events as a means of raising funds for their work, and they say the new “updates” not only violate key aspects of state law, but will end up costing them millions in lost revenue.
“We had no choice but to pursue legal action, ” said Stephanie Van Koevering, spokesperson for the plaintiffs. “The Executive Director has blatantly overstepped his statutory authority in ways that will make it harder for charities to access gaming revenue. Ultimately, it’s Michigan’s most vulnerable residents that will pay the price.”
During 2012, Governor Snyder transferred responsibility for regulating charity gaming activities to the Executive Director of the Michigan Gaming Control Board. At the time, the Governor noted that “many of Michigan’s fine nonprofits and charities count on these games to raise revenue.”
“In the months since the director assumed responsibility, however, bureaucratic interference has already reduced the number of events by 70%,” indicated Van Koevering.
“The plaintiff charities fear that these most recent updates will completely cut off their access to the gaming revenue on which they rely. Even the MGCB director has acknowledged in media reports that the industry may not survive,” said Van Koevering.
The plaintiff charities are represented by George M. Brookover of Brookover, Carr & Schaberg, PC East Lansing.
Judge Canady has schedule a show cause hearing on the injunction for September 5, 2013.
Great job charities! I hope to attend the show cause hearing to report it as live as possible.