Michigan regulators compromise on charity gaming… poker rooms NOT happy

poker chipsM Live – State regulators say they’ve reached a compromise on charity poker rules, but not everyone is happy with the restrictions. 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 of business that had been operating seven days a week.

The board has for months weighed different options for dealing with so-called “millionaire parties” that allow nonprofit groups to raise funds by hosting casino-style games such as Texas Hold ’em and blackjack. It wanted stricter rules to address problems with gaming violations and violence at some permanent poker rooms. State officials contend the law was never designed for what has become a multi-million dollar industry.

But charities, poker room operators, dealers and players all fought the proposed rules, arguing they would essentially shut down the industry, hurt nonprofit fundraising and result in lost jobs for poker room employees. State Rep. Jeff Farrington, a Republican from Utica, also opposed the state’s proposed solutions and introduced a bill to allow for and regulate charity poker rooms.

The gaming control board held multiple meetings with stakeholders and made several changes to its proposed rules before announcing on Thursday that it had reached a compromise with Farrington, who will drop his bill.

“We really wanted to make sure we could still allow charities to do the fundraising, but we found quite a bit of fraud and charities that were taken advantage of, and charities that didn’t want to take ownership of it,” said Rick Kalm, executive director of the gaming control board.

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