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Can I offer contests that involve VIP programs in Michigan? What are the requirements?

Offering Contests with VIP Programs in Michigan

Based on the information provided in the context documents, it appears that offering contests that involve VIP programs in Michigan may fall under the category of fantasy contests.

To offer fantasy contests in Michigan, a person must be a licensed fantasy contest operator, unless they meet certain exceptions outlined in Section 3 of MICL 432.503. An individual may offer fantasy contests from their private residence, limited to no more than 15 total players, and collect 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. Additionally, a casino licensee licensed by the board under the Michigan Gaming Control and Revenue Act or an Indian tribe that lawfully conducts 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 is licensed under the lawful sports betting act or the lawful internet gaming act may offer and conduct fantasy contests without applying for or holding a license under this act.

To be licensed as a fantasy contest operator, a person must submit an application and pay a license fee to the board. The applicant must provide sufficient documentation to the board to ensure that the applicant meets the requirements for licensure as determined by the board, including documentation of the applicant’s criminal record, if any, or, if the applicant is a business entity, any criminal record of an individual who is a director, officer, or key employee of, or who has a 5% or greater ownership interest in, the applicant. The board may also require licensure of a holding company, management company, or any other person it considers sufficiently connected to the fantasy contest operator if that licensure is necessary to preserve the integrity of fantasy contests and protect fantasy contest players.

Based on the information provided, it is unclear whether offering contests that involve VIP programs would require a license as a fantasy contest operator. However, if the contests meet the definition of a fantasy contest as outlined in Section 2 of MICL 432.502, a license may be required. It is recommended that you consult with a legal professional for further guidance on this matter.

Location Limitations

Offering a fantasy contest must not be done on, at, or from any of the following:

  • A kiosk or machine physically located in a retail business location, bar, restaurant, or other commercial establishment.
  • A place of public accommodation.
  • A facility owned, operated, or occupied by a private club, association, or similar membership-based organization. [1.2]

Application of Michigan Penal Code

A fantasy contest conducted under this act does not violate the Michigan penal code, 1931 PA 328, MCL 750.1 to 750.568. This act does not create an exemption to a violation of chapter XLIV of the Michigan penal code, 1931 PA 328, MCL 750.301 to 750.315a. [1.3]

Therefore, to answer your question, it is unclear whether you can offer contests that involve VIP programs in Michigan without a license as a fantasy contest operator. It is recommended that you consult with a legal professional for further guidance on this matter.

Source(s):
Jurisdiction

Michigan