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Can I offer contests that involve entry fees in Michigan? What are the requirements?

Yes, you can offer contests that involve entry fees in Michigan, but you must comply with the regulations set forth by the Michigan Gaming Control and Revenue Act [1.1]. To become a licensed fantasy contest operator, you must submit an application and pay a $10,000 initial license fee [1.1]. Additionally, you must provide documentation to ensure that you meet the requirements for licensure, including information about your business, criminal record, and ownership interests [1.1]. Once licensed, you must comply with commercially reasonable procedures and internal controls to ensure the integrity of fantasy contests [1.4].

If you are an individual offering fantasy contests solely from your private residence, you may offer one or more contests limited to no more than 15 total players and collect no more than $10,000 in total entry fees for all contests offered in a calendar year [1.1].

There are also location limitations on where fantasy contests can be offered. They cannot be offered on a kiosk or machine physically located in a retail business location, bar, restaurant, or other commercial establishment, a place of public accommodation, or a facility owned, operated, or occupied by a private club, association, or similar membership-based organization [1.3].

It is important to note that a fantasy contest conducted under the Michigan Gaming Control and Revenue Act does not violate the Michigan penal code [1.2]. However, it is not clear whether small and large raffle licenses are required for contests that involve entry fees [2.1].

In summary, to offer contests that involve entry fees in Michigan, you must comply with the regulations set forth by the Michigan Gaming Control and Revenue Act. This includes becoming a licensed fantasy contest operator, complying with commercially reasonable procedures and internal controls, and adhering to location limitations.

Source(s):
Jurisdiction

Michigan