After apparently stepping back last month to reassess the situation, the battle over the charitable poker room industry has heated up once again in the state of Michigan. This time around, the fight between the Michigan General Assembly and the Michigan Gaming Control Board has led to confusion and controversy over the future of the industry.
In March, the MGCB suddenly dropped plans to adjust the regulations on charitable poker rooms when they withdrew a plan that was set to be voted on by the General Assembly’s Joint Committee on Administrative Rules. At that time, the MGCB said the move was “made in order to determine if adjustments can be made to the rules and still accomplish the goals” that had been set out by the MGCB. Those goals were such issues as player safety, the integrity of the games and the participating charities ability to raise funds.
Although they withdrew their submission amid fierce opposition from players and card room owners at that time, the battle wasn’t over yet. Perhaps waiting for the opposition to move on, the executive director of the MGCB, Rick Kalm, resubmitted his proposed regulations on March 25. Adjustments had been made (“a compromise as suggested by some members” Kalm stated to Crain’s Detroit Business’ Sherri Welch) such as allowing two “millionaire parties” per day (instead of one as Kalm had suggested) and a 55/45 split between the charities and the poker rooms, up from the 65/35 split that Kalm had previously sought.
There were several components, however, that stayed the same. The proposed regulations from Kalm held poker rooms to four “millionaire parties” per week and stipulated that three members of the charity were supposed to be on the premises instead of two. The charities were required to have raised more than $500 outside of the charity poker rooms and the poker rooms would be required to have background checks performed on all dealers at events by the MGCB.
Not pleased with Kalm’s compromises, Michigan State Senator Rick Jones revived his bill that would pull some of the regulatory authority from the MGCB. That bill, S. B. 878, would place no regulations on how many days the charitable rooms could operate and would open the industry up for racetracks to enter into it. It would also establish the right of the charitable poker industry to exist in the Wolverine State, rather than the MGCB’s approach over the past three years of freezing licenses and closing rooms.
Jones’ bill was able to work through committee over the past month and, according to Melissa Anders of MLive.com, the Michigan Senate unanimously passed S. B. 878 on Thursday. The Jones bill has drawn support from the players and poker rooms due to its relaxed regulations (for example, the daily limit on chip sales per charity would increase from $15,000 to $20,000 and, if a charity was able to run the games themselves, chip sales could increase to $50,000). The bill is now moving over to the Michigan House for its consideration and vote.
Anders cites Jean Kordenbrock, the manager of the Michigan Charitable Gaming Association, as one of those involved that approves of Jones’ maneuvering. “The profitability of the events will be maintained with Sen. Jones’ bill while also providing increased oversight that the gaming control board has been saying that they need,” Kordenbrock said. Kalm stated he had no input on the Jones bill and, as such, he could not comment on its effect on the MGCB’s regulation of the industry.
The rules that had been resubmitted by the MGCB will take effect by April 30, but they would be superseded by action in the Michigan General Assembly. If the House were to pass S. B. 878 and get Michigan Governor Rick Snyder to sign it at any point, the draconian regulations presented by Kalm and the MGCB would be overridden and the charitable poker rooms (and charities) would be protected and move forward on a firm footing.
