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Michigan Hosts Texas Holdem Poker Events for Charitable Organizations

Texas Holdem players sat with the hoods of their sweatshirt draped over their heads and sunglasses covering their eyes, playing like professional poker players on television. But this poker event on February 15th, 2009 was in a bowling alley in Woodhaven, where the top prize was $500 and fifty percent of the gross profits for the evening were donated to a local non-profit organization.

In the recent months-to the delight of thousands of local charities and the disappointment of some local and state officials-a growing number of these poker events are being held in a daily basis, in bars and bowling facilities in communities like Rochester, Sterling Heights, Monroe, Warren, Dearborn, Waterford, Lansing and Ann Arbor. With the improving popularity of Texas Holdem, these charitable tournaments are now being offered in more than one hundred twenty establishments all over Michigan.

According to Tom Reich, the gaming unit director for the state of Michigan's charitable gambling division said that these events also offered blackjack and roulette games. He added that the events are open to people eighteen years of age and older. Tom Reich said that there were 4,043 Millionaire Party licenses given out by the end of 2008, improved from 681 in 2004. The 2008 figure improved significantly compared with the end of the 2007 fiscal year, when nearly 2,900 licenses were given.

Non-profit organization leaders say the poker events-which produced more than $10.4 million by the end of the fiscal year in September 2008-provide a simple way to get much needed profit at a time when finances are scarce. The president of the Northwest Little League in Taylor, Larry Hall, stated that the games have helped financed the charity's $70,000-a-year operation, including uniforms and registration costs. Hall's organization raised about $5,000 in a gambling room installed at Woodhaven Lanes and managed by a private facilitator.

The state requires that the non-profit organization receive at least fifty percent of the gross profit of each poker event. Businesses that facilitate the parties and the venues where they take place often earn too. Charity casino nights at churches and senior facilities require the same gaming licenses, which are issued by the Michigan Lottery charitable gambling division. Rick Kalm, the executive director of the board said that the state Gaming Control Board said that there should be more oversight of charitable gambling.

The board made a task force about 6 months ago that, in part, addresses issues with charitable gambling, including advertising of the poker events, which according to state rules, can only be accomplished by the licensed charities, not by the venue or the facilitator. Reich said that qualified non-profit organization can hold up to sixteen gambling nights a year. Sales are capped at $15,000 each day including sales of poker chips or raffle tickets at the Millionaire Party.

Casinos are not happy about the growing trend and legislators say establishments are taking advantage of the existing state laws, which do not regulate charitable gaming as strictly as established casino facilities. State Representative Tom McMillin, R-Rochester Hills, has submitted language for legislation that would permit venues to offer one, 4-day charitable gambling event per month.

Greektown Casino spokesperson Roger Martin stated that charitable gambling is a cover for unregulated gaming at local bars. He added that Detroit's casino facilities help fund public schools all over the state with the help of the School Aid Fund. According to the Michigan Lottery, more than $15 billion has been generated to support state education since 1972. In 2008, more than $740 million was contributed.

03/26/2009, Thursday
Sherry Barlow

Michigan Hosts Texas Holdem Poker Events for Charitable Organizations

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