| September 01, 2003 |
| NEWSLETTER - Lottery Pull-Tabs on Hold for Now |
An Ingham County circuit judge has issued temporary restraining orders blocking the Michigan Lottery from allowing bars and taverns to sell "break open" ticket games or from prohibiting an existing vendor from selling the games to bars or taverns.
Judge James Giddings scheduled a hearing for September 5 on a lawsuit filed against the Lottery by operators of a charity gaming supplies vendor. The suit alleges their pull-tab sales to charity organizations would suffer if the Lottery offers its own pull-tab games to be sold in bars. The plaintiffs are also arguing that the state doesn’t have statutory authority to offer the game.
Judge Giddings voiced a couple of concerns. One was whether or not the Lottery has exclusive control over the sale of break open ticket games. The other was how unclaimed break open ticket game prizes are handled.
According to Lottery Commissioner Gary Peters, the expanded sales of break open ticket games to bars and taverns is expected to net $25 million annually to the state School Aid Fund. Break opens and the addition of Club Keno to the Lottery lineup of on-line games is expected to put an additional $50 million in the School Aid Fund a year. The games were part of the solution in balancing the FY 2004 budget.
NOTE: The next hearing, originally scheduled for Aug. 19, was postponed until Sept. 5. |
