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Unlawful Gambling on the Licensed Premises

Bingo Card

Unlawful Gambling on the Licensed Premises

Bingo & Music Bingo

The Michigan Liquor Control Code – MCL 436.1901(2) – prohibits liquor licensees from allowing unlawful gambling on their licensed premises. This includes bingo or music bingo that contain the three elements of gambling:

  • Consideration - A cost to participate or a requirement to be present to participate. Under Michigan law, consideration occurs whether or not the players must pay to enter the contest or purchase something to participate. Just being present is consideration.
  • Chance - The random selection and arrangement of numbers or songs on bingo cards.
  • Reward - Any prize, whether cash or not cash, regardless of value.

Bingo or music bingo that has one of the three elements of gambling removed would not be considered unlawful gambling. For example:

  • Bingo or music bingo game that does not offer any sort of prize for winning would have the reward element removed.
  • Music bingo in which all the players use identical bingo cards and must rely solely on their knowledge of the songs to win would have the element of chance removed.

Furthermore, there was a violation against a winery in early 2021 related to bingo that was dismissed. That decision was made based on the specific facts of that case alone and did not set a binding precedent that bingo or music bingo that contains all three elements of gambling is legal, despite news articles that claim it did. The Commission elaborated on this further in its order denying a declaratory ruling on this topic in October 2021.

March Madness Brackets

March Madness tournament bracket contests that contain the three elements of gambling are unlawful gambling and cannot be conducted on the licensed premises of a liquor licensee:

  • Consideration - A bracket contest conducted on the licensed premises involves consideration whether or not the players must pay to enter the contest.
  • Chance - A bracket contest involves chance as the outcome of the contest is not known by the players and the outcome of the contest cannot be affected by the players' skills.
  • Reward – A bracket contest contains the element of reward if the players receive money or any other valuable thing for winning the contest.

Licensed businesses that allow unlawful gambling on their licensed premises may be cited and found responsible for a violation of the Michigan Liquor Control Code, which may result in a fine, suspension, or revocation of the liquor license.

Questions?

Licensees are encouraged to contact the MLCC Enforcement Division with any questions about games and contests on their licensed premises. Questions may be emailed to District Supervisor Chris Evans.