Mich. Board Scales Back Proposed Limits on Charity Poker

The Michigan agency that sought stringent limits on charity casinos and a state legislator who fought the regulations have reached a compromise that will allow nonprofit groups to host gambling fundraisers in more venues but on fewer occasions, reports the Detroit Free Press.

The Michigan Gaming Control Board said the new rules, while looser than those it proposed last year, will help rein in fraud and other crimes the agency says have accompanied the booming charity-poker industry, which took in $197-million in revenue in 2011. State Rep. Jeff Farrington withdrew a bill he introduced to reverse the board’s proposed restrictions.

Under current rules, charity poker nights can be held 365 days a year in 40 professionally operated venues that share proceeds with sponsoring charities. The gaming board wanted to impose a 120-night limit but agreed to 208. If approved by a legislative panel, the compromise will also allow charities to hold gaming nights at a wide array of venues, including bars, schools, churches, and community centers, and require that three people from the sponsoring group work at the events, up from two.

Rick Kalm, the board’s executive director, said the rules will “insure the integrity of these games by making the charities more accountable for their operation.” Nonprofit groups assailed the compromise, saying that even the less-tight regulations will significantly reduce a major revenue stream.