HomePublicationsNewsletter ArchiveVolume 19Issue 30MGCB Suspends Charitable Gaming Activity at Burton Poker Room

On Wednesday, October 30, 2013, the Michigan Gaming Control Board (“MGCB”) announced that it had suspended all charitable gaming activity at Gloria’s Poker Palace, operating as Palace Poker Room, located in Burton, Michigan. The suspension has been issued after a joint investigation was conducted by the MGCB and the Michigan State Police.

According to the announcement, the investigation began in August of this year when the MGCB received tips of illegal gambling activity occurring onsite. The MGCB has alleged that the investigation uncovered a scheme by which charities were required to pay the location a specific amount of funds from the event beyond what is required under the law or be denied the ability to use the location to hold charitable gaming events. In addition, the MGCB alleges several other violations of charitable gaming laws and regulations, claiming that the location operated charitable gaming events without the charity’s supervision, falsifying financial reports, and provided charitable gaming funds to unlicensed charities or organizations.

The suspension represents the 16thcharitable location that has been the subject of closure from the MGCB since 2010. In response to these investigations and in an effort to clarify legal charitable gaming practices, MGCB Executive Director Richard Kalm has submitted revised regulations governing millionaire party events, which include poker room activities. The draft regulations were submitted to the Department of Licensing and regulatory Affairs on September 18, 2013, and discussed at a hearing with the Michigan Legislature’s Joint Committee on Administrative Rules on October 31, 2013. In order to become effective, the draft regulations must be subject to a public comment period and comply with the Michigan Administrative Procedures Act.


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