Prop. 1 Update:
Education Community Opposes Proposal 1
Click the title to read the October 11 Press Release (PDF format).

The Facts on Proposal 1

Who is behind the ballot proposal and why? The Detroit casinos and several of the Native American tribes in Michigan have united together to help protect a monopoly they have on gaming in our state. They cannot argue that gaming is wrong or immoral; their only argument is that it will take revenue from them. This proposal was triggered by the possibility of video lottery terminals (VLTs) at racetracks and the recent beginning of the Lottery Club Games in bars. While the current Lottery Club Games cannot be impacted by this proposal, any new language that allows the implementation of VLTs at any location would be prohibited absent a vote of the people.

How does the ballot proposal affect liquor licensees? With the language limiting new electrical and mechanical gaming in Michigan to the Detroit and Native American casinos only, licensees could be negatively impacted in many ways. The Michigan Lottery must evolve and adapt over time to compete with other gaming venues to be profitable for K-12 public education and must have the latitude to tweak, develop and implement new games. This includes the current Club Games being offered to licensees and any new games in the future. The attempts of licensees to get VLTs in bars would become almost insurmountable if this proposal goes through. The cost of running a statewide ballot proposal to support the extension of gaming opportunities in establishments licensed by the MLCC would be prohibitive. A major hurdle for licensees in our battle to get VLTs will come in November when the proposal must be defeated.

How does the ballot proposal affect Michigan? Currently, the Michigan Lottery is nearing record sales and revenue generated for K-12 public education. Of that money, roughly $60 million this year is coming from the Lottery Club Games in licensed establishments alone. In coming years, we anticipate that the Club Games will be generating close to $100 million if not more for K-12 public education. With the passage of this proposal, the ability for Lottery to effectively manage their games and improve upon them to compete is significantly diminished. The real losers in this ballot proposal are the children of Michigan who rely on the nearly $600 million that Lottery raises for K-12 public education annually.

What can you do as a licensee? The MLCC does allow liquor licensees to display signs and materials on-premises for the support or opposition to ballot initiatives. We at the MLBA will be working to provide materials to our members that can be passed out or displayed to educate your customers about the greed of the Detroit casinos and some of the Native American tribes. It is our goal to touch as many of your customers as possible to show them that the efforts to monopolize gaming in Michigan has a tremendous negative affect on our children and the governments ability to properly fund their education.

For more information, contact Martin Van Valkenburg, the MLBA's Government Affairs Director, at (800) 292-2896.