Opinion ID: 1040084
Heading Depth: 3
Heading Rank: 1

Heading: Millionaire Parties

Text: A “millionaire party” is “an event at which wagers are placed upon games of chance customarily associated with a gambling casino through the use of imitation money or chips that have a nominal value equal to or greater than the value of the No. 12-2384 Top Flight Entm’t, et al. v. Schuette, et al. Page 3 currency for which they can be exchanged.” Mich. Comp. Laws § 432.103a(8). Millionaire-party licenses are limited in scope and duration, and may be issued to a “qualified organization” for up to four consecutive days. Id. § 432.110b. A “qualified organization” is a “bona fide religious, educational, service, senior citizens, fraternal, or veterans’ organization that operates without profit to its members and that either has been in existence continuously as an organization for a period of 5 years or is exempt from taxation under section 501(c) of the internal revenue code[.]” Id. § 432.103(g)(i). Each qualified organization may receive four millionaire party licenses a year, and each license is only valid for one location. Id. § 432.110b. The licensee of the millionaire party is responsible for “insuring” compliance with the law. Id. § 432.110a. An application for a millionaire party must include, among other things, information identifying the applicant organization, the location at which the applicant proposes to conduct the event, the proposed dates for the event, and a sworn statement attesting to the nonprofit status of the applicant organization. Id. § 432.104. A license may be denied if either the applicant or the lessor of the millionaire party’s proposed location “is not in compliance with the requirements of the act, these rules, terms of probation, directives of the bureau, public policy of the state of Michigan, or any other local, state, or federal law or regulation.” Mich. Admin. Code r. § 432.21109. A denial of an application may be appealed by the applicant in state court. Id.; Mich. Comp. Laws § 600.631. The proceeds from a millionaire party (less “reasonable” expenses incurred to operate the event) must be “devoted exclusively” to the charitable purposes of the licensee. Mich. Comp. Laws § 432.109(1). Leasing a location to hold the event is an approved use of the proceeds, id., but “all of the terms and conditions of rental, including the fee [must be placed] in a written agreement approved by the bureau.” Mich. Admin. Code r. § 432.21416. The location at which a licensed event is conducted must be open to inspection at all times. Mich. Comp. Laws § 432.114(3). No. 12-2384 Top Flight Entm’t, et al. v. Schuette, et al. Page 4 On June 11, 2012, the governor of Michigan transferred authority to administer millionaire-party licensing and regulation from the Lottery Commissioner to the Executive Director of the Michigan Gaming Control Board. Id. § 432.91.