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Can I offer contests that involve skill-based games in Michigan? What are the requirements?

To offer skill-based contests in Michigan, you must comply with the relevant laws and regulations.

According to MICL 285.144 [2.1], the board of managers may enter into licensing agreements with concessionaires permitting games of skill, subject to certain criteria. These criteria include that winning the game of skill does not require great skill on the part of the participant, the game does not constitute a fraud upon the participants, and the game is not similar to games of chance.

Additionally, MICL 432.508 [1.1] prohibits offering fantasy contests on certain premises, such as retail business locations, places of public accommodation, and private clubs. However, this section does not apply to casino licensees or federally recognized Indian tribes licensed under the lawful internet gaming act or the lawful sports betting act.

Furthermore, MICL 432.515 [1.3] states that a fantasy contest conducted under the relevant act does not violate the Michigan penal code, and MICL 285.145 [2.2] specifies that certain sections of the penal code do not apply to persons conducting or participating in a game of skill pursuant to the relevant act or rules.

MICL 432.503 [1.2] requires a person to be a licensed fantasy contest operator to offer fantasy contests in Michigan, unless they meet certain exceptions. An individual may offer, solely from his or her private residence, one or more fantasy contests, if none of the contests are made available to the general public, each of the contests is limited to no more than 15 total fantasy contest players, and the individual collects no more than $10,000.00 in total entry fees for all fantasy contests offered in a calendar year, at least 95% of which entry fees are awarded to the fantasy contest players. Casino licensees licensed by the board under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, and federally recognized Indian tribes that lawfully conduct class III gaming in a casino located in Michigan under a facility license issued in accordance with a tribal gaming ordinance approved by the chair of the National Indian Gaming Commission and are licensed under the lawful sports betting act or the lawful internet gaming act are exempt from this requirement.

Finally, MIAC R 432.649 [4.1] allows internet gaming operators or internet gaming platform providers to conduct internet gaming tournaments or contests on an authorized game, subject to certain requirements, such as filing written notice with the board of its intent to offer that tournament or contest type and maintaining a record of each tournament or contest type offered.

Therefore, to offer skill-based contests in Michigan, you must comply with the criteria set forth in MICL 285.144, avoid offering contests on prohibited premises as outlined in MICL 432.508, ensure that your contests meet the conditions specified in MICL 432.503 if offering fantasy contests, and comply with the requirements for internet gaming tournaments or contests as outlined in MIAC R 432.649.

Source(s):
Jurisdiction

Michigan