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August 11, 2014

Mich. Judge Blocks New Restrictions on Charity Gaming

Michigan nonprofits that collect tens of millions of dollars on gambling fundraisers have won a permanent injunction barring enforcement of new state rules aimed at limiting the number of such events, reports the Associated Press.

Court of Claims Judge Pat Donofrio's August 7 ruling extends a temporary restraining order he issued May 30, a day before the regulations were to take effect. The Michigan Charitable Gaming Association and several nonprofits sued to block the rules, saying they would severely undercut organizations' fundraising ability.

The Michigan Gaming Control Board sought to reduce charity poker room operations from daily to four days a week and to increase sponsoring nonprofits' share of the take, which is split with professional gaming firms. The board has made multiple attempts in recent months to implement tighter regulations on charity gambling, which exploded from a $7.9-million industry in 2002 to $197-million in 2011.