Today, Executive Director of the Michigan Gaming Control Board released a letter and updated rules for Suppliers and Qualified Organizations.  Check out the links but I’ll bring up all the changes here on this page so we can discuss each individually.

The letter states, “Since the transfer, the MGCB has conducted over 900 on-site and post-inspections of different qualified organizations (charities) resulting in nearly 300 violations to the charities and suppliers involved.”  A violation could be as bad as selling more than the allotted $15,000 in chips sales or as minor as failing to wear a name tag during the event.  Other violations could be not having a receipt from a transaction or deposit even though it is documented in bank records.  So unless they break down the violations into something more meaningful, I feel these are just crap statistics used to justify the changes to the rules.

“Law enforcement reported incidents at permanent recurring millionaire party locations were analyzed from January 1, 2010 through March 31, 2013. This information revealed 4 armed robberies; 47 assaults; 3 weapons offenses; 72 disorderly persons; and 11 frauds.”  That is 137 issues (some could be all from 1 incident) over a 3 1/4 year period at 45+ establishments.  Lets do the math here: 45 rooms * 363 (open days per year) * 3.25 (period stated above) / 137 incidents = 0.258% of the time there is an incident.  I wonder that the stats are at the casinos…

So let’s go through the new rules that our brilliant leader has imposed on the charities and poker rooms:

1. Effective September 1, 2013, no more than three (3) licensed millionaire party events will be
approved at any one location per day.

– This is different from the previous rule change that made the maximum number of charities operating at 1 time.  Further hampering charities ability to get into rooms to raise money.

2. Effective September 1, 2013, all millionaire party events shall only be conducted between the hours of 8 a.m. and 12 a.m. (midnight). Each licensed event must be complete (i.e. all game play ended, all chips cashed in, all prizes issued, and all game records completed and printed) by the event end time indicated on the license. Similarly, chips or imitation money must not be exchanged prior to the start time indicated on the license.

– So play will actually have to stop about 11:30 PM to allow time for paperwork.
– The Good tournaments will have to either start earlier or change the structure to hyper-turbos where luck is the deciding factor.
– People who cash in tournaments will have limited time to play cash games afterwards.

3. Effective September 1, 2013, tips may not be accepted in the form of chips. Cash tips will continue to be allowed; however, cash tips must be provided in accordance with Rule 409(11) which states, “A person employed by or an agent of a lessor, location, or licensed supplier may accept cash tips at a licensed millionaire party event.”

– Dealers will make WAY less money as only the winners of the night will tip.
– Since Dealers make less money, less tax goes to the state as well.

4. Effective immediately, any computer utilized by a qualified organization for the purpose of maintaining millionaire party event records must not be enabled with any remote access capabilities or contain any remote access software.

– I understand what they are trying to do here as they don’t want anyone making changes to the documents remotes, but all Windows Operating Systems have remote access capability built-in.
– They could just save the document on the working PC and open the document over the network from the back room and make the changes then re-open it

5. Section 432.110a(d) of the Act states, “A qualified organization shall not receive more than $15,000.00 in exchange for imitation money or chips in 1 day of a millionaire party.” To ensure compliance with this law, effective September 1, 2013, the $15,000.00 maximum exchange limitation must be reduced by the value of the “seed” (i.e. startup bank of chips) required for house games. Upon seeding a house game, the total value of the seeded chips must be deducted from the $15,000.00 maximum exchange limit. Once a table is seeded, no chips from that table may be redeemed for the purpose of adjusting the $15,000.00 maximum exchange limitation.

– If you seed a Black Jack table with $2000, this could theoretically allow for more than $15,000 in chips to be in play.  I never liked house games for my charity as they have the possibility of losing money so I am unsure how this will affect the charities.

6. Effective September 1, 2013, only one qualified organization may seed and have its chips in play at any one table.

–  This will make it so only 1 charity per day of the event can run Black Jack, Roulette and other games of that nature.  House games have the potential to make more money than the poker rake but the poker rake is a guaranteed money-maker.

7. Effective September 1, 2013, educational organizations are required to maintain a separate bank account for the purpose of managing millionaire party events. In addition, each check written from this account must be preprinted with the name of the educational organization (Refer to R432.21415(5)(a)).

– I like this idea because when they want to audit a charity, they go through 6 months of bank transactions.  This will greatly decrease the paperwork that they need to sift through.

8. Effective November 1, 2013, the qualification classifications currently known as Educational Subordinate and Religious Subordinate will no longer be accepted qualification types. Organizations which currently hold one of these qualification types may re-apply for qualification using one of the remaining qualification classifications. Refer to www.michigan.gov/mgcb, click on Millionaire Party  Qualification Requirements Qualifying Organizations, for additional information on the qualification process.

– I honestly have no idea what this means.  I will need to get some more clarification.

 

I have no idea who comes up with these rules but it seems to me that they are trying to regulate these rooms out of existence.  Does he have something against charities making money?  room operators trying to run a business that employ hundreds, if not thousands of workers throughout the state?  What happens when all the rooms end up getting shut down because they can not operate under the constant changes?  Less tax dollars from the businesses, less payroll taxes from employees of the business and no more license fees coming in.  Then they lay off the inspectors because they have no one to investigate further perpetuating the tax issues.

Richard Kalm was appointed to this position and was recently re-appointed.  There is no way to vote him out.  However, Governor Snyder appointed him and transferred the power to Mr. Kalm.  Governor Snyder will be looking for votes next election. ]

There NEEDS to be changes made to the rules but they are going in the wrong direction.  The Michigan Charitable Gaming Association is doing their best to help charities and rooms.  I feel there needs to be a committee put together including charities, rooms, players and the MGC that would discuss changes.  Right now, we just have a dictator making it difficult for charities to raise funds for much-needed programs and rooms to run a business.