[Michlib-l] Charitable Gaming

[Membiela, Clare (MDE)]

Hello:



Here is some additional information regarding gaming and Public Libraries:





lMCL 730.372 <http://legislature.mi.gov/doc.aspx?mcl-750-372>  Lotteries and gift enterprises; prohibited acts; applicability of subsection (1); "promotional activity" defined; violation as misdemeanor; penalty.



(2) Subsection (1) does not apply to a lottery or gift enterprise conducted by a person as a promotional activity that is clearly occasional and ancillary to the primary business of that person. As used in this subsection, "promotional activity" means an activity that is calculated to promote a business enterprise or the sale of its products or services, but does not include a lottery or gift enterprise involving the payment of money solely for the chance or opportunity to win a prize or a lottery or gift enterprise that may be entered by purchasing a product or service for substantially more than its fair market value

The short answer is that it would seem that you are ok with both Summer Reading prizes AND a raffle, IF there is no cost to the patron - in other words, if you are giving away raffle tickets to every child who reads a book and then drawing prizes, you should be ok.

If you are handing out giveaways to kids upon signing up for Summer Reading or upon reading a book, that should be ok too.

However, if the Library itself wishes to fundraise using raffles,  that could be an issue. I can find no rules or authority that addresses whether Public entities can obtain licenses for raffles, etc. Public entities such as libraries don't fall into any of the statutory or regulatory definitions. However, I also don't see anything - yet - that says they can't either.

The statute governing licensing indicates that , under certain conditions, a license isn't required, so it may be that a Public library would fall under that exeption,:


432.105d<http://legislature.mi.gov/doc.aspx?mcl-432-105d> Small and large raffle licenses; issuance.

4) A qualified organization is excused from the requirements of obtaining a license under this act if the qualified organization is sponsoring a single gathering and conducts a raffle before which there is no presale of tickets and the total aggregate retail value of the prize or prizes to be awarded that day is $100.00 or less.

BUT I would encourage you to consult your attorney to confirm before you plan your event.

ON THE OTHER HAND, a Friends Group, if it is a 501(c)3 entity,  can certainly obtain a license for charitable gaming, and hold an event for the benefit of the library. For fundraising purposes, this may be your best bet.

As James indicated, the Michigan Lottery has a good page on  this topic, at
http://www.michigan.gov/cg/


I hope this is helpful - Please don't hesitate to contact me if I can be of assistance!

Sincerely,
Clare

Clare D. Membiela, MLS, J.D.
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

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