Michigan State Government, Bar Owners At Odds Over Legality Of Bingo Games

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In regards to gambling in the Wolverine State, it is advisable to avoid making assumptions. The state government has taken action to reinforce this point by cracking down on the practice of “bar bingo.”

The legality of the game may be determined through a lawsuit, as the plaintiffs claim that their business has suffered due to the state’s implementation of gambling regulations.

Why the state has started to police “bar bingo”

The games were deemed illegal gambling by the state’s Liquor Control Commission, leading to their prohibition. The establishments had been operating the games without obtaining a license from the Michigan Gaming Control Board.

Although the MGCB is currently not involved in the dispute, the LCC possesses the power to regulate the activity independently. Despite the absence of cash prizes or wagers in the games, the LCC considers them as gambling due to the fact that patrons pay to be present at the bar.

In addition to the closure of the games, the LCC has imposed fines and failing to comply with them or persisting in operating the games may result in the withdrawal of liquor licenses.

Saugatuck Brewing Co. was the only establishment that paid the fine without objection, which was advantageous for the state. However, not all bars and pubs have been as cooperative.

Lawsuit argues bingo games are merely promotional

A collective lawsuit has been filed by multiple establishments against the LCC, contending that the absence of monetary involvement in the games renders them non-gambling activities.

The owners who are actively participating claim that they do not impose additional fees on customers for entrance fees, beverages, or meals, regardless of whether they choose to participate in the bingo games. Although it can be debated that the prizes hold some value, it is important to note that cash is not included as one of the potential rewards.

Furthermore, the plaintiffs argue that their businesses have been adversely affected by the crackdown. A significant number of bars and pubs relied on these games to attract customers during typically quiet evenings, thus boosting their overall revenue.

The lawsuit challenges the state on the grounds of due process. The plaintiffs argue that the state unlawfully assumed that its enforcement and interpretation of the law could not be contested by any establishments, as Saugatuck paid the fine without raising any objections.

The lawsuit argues that bars, breweries, and pubs should be allowed to offer promotional games like McDonald’s Monopoly, just like other businesses. It claims that bingo is no different from tabletop shuffleboard or trivia.

Next month, there will be a hearing at the Kent County Court according to the schedule. The state will be represented by Attorney General Dana Nessel’s office during the bench trial.

The possible effects of the lawsuit

Breweries in Michigan may have no other option but to pursue a lawsuit as their only remedy at present. Nevertheless, it is important to acknowledge that the lawsuit entails a certain level of risk.

Should the court rule in favor of the defendant, it would enhance the state’s capacity to oversee bingo games. The plaintiffs would have the option to file an appeal, though in the interim, the current state of affairs would persist.

In the event that the plaintiffs are granted a favorable verdict by the court, it has the potential to reinstate their capacity to organize bingo and other promotional games. Consequently, this could establish a precedent that may grant bars, breweries, pubs, and other dining establishments the opportunity to participate in future gambling expansion endeavors.

Currently, the primary desire of bar owners is to regain the previous level of traffic lost due to the ban. Nonetheless, the state remains steadfast in its viewpoint.

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