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New Michigan laws regarding charitable millionaire-party fundraisers

30 Jan 2023

(PRESS RELEASE) -- The funding source for Michigan charitable millionaire party fundraisers changed from charitable gaming license fees and ticket sales to the Internet Gaming Fund under bills signed into law 22 December by Gov. Gretchen Whitmer. The change provides a more sustainable, reliable funding source and allows qualified charities to continue to raise funds without event reductions or paying higher license fees to the Michigan Gaming Control Board. It takes effect on 29 March.

“The new law addresses funding concerns and allows the MGCB to continue its high level of service to charities, eliminating a potential need for fee increases or limits on issuing licenses,” said Henry Williams, MGCB executive director. “Internet gaming has been extremely popular. Operators paid $289.24 million in taxes and payments to the state of Michigan in 2022.”

The bills were SB 1111, which amended the Lawful Internet Gaming Act (LIGA), and SB 1112, which amended the Bingo Act. They are now Public Act 269 of 2022 and Public Act 270 of 2022 respectively. Revenue remaining after the annual MGCB appropriation, the required $500,000 transfer to the compulsive gaming prevention fund and the required $2 million transfer to the first responder presumed coverage fund will go to the state School Aid Fund at the end of the fiscal year.

"As the statewide association for charities engaged in charitable gaming events, the Michigan Charitable Gaming Association (MiCGA) is pleased to see the commitment by the Legislature and the Governor," said Katherine M. Hude, MiCGA executive director. "This funding will allow the MGCB to continue its good work in developing, implementing, and training on technology tools, such as the Online Portal for Millionaire Party applications. These tools help simplify and streamline the application process for our charities and make it easier to continue providing valuable programs and services to their communities through the funds raised through charitable gaming."

Previously, the MGCB received millionaire party funding from charitable gaming license fees and ticket sales held in the State Lottery fund. The Legislature annually approves the agency’s millionaire party appropriation. Moving millionaire party funding to the LIGA will mean more resources in the fund for other forms of charitable gaming licensed and regulated by the Michigan Lottery like bingos, raffles and charity-ticket games.

In 2022, the MGCB improved service to charities by launching the online portal, which allows charities to submit event applications online, pay licensing fees, track event application progress and view their organization’s profile information. The new tool makes applying for a Millionaire Party event more efficient and accessible to charities throughout Michigan. Past budget appropriations made the online portal project possible.
 
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