Gambling laws vary across the 50 states. Most states, however, now have official state lotteries, which are games of chance that award cash prizes. The Michigan state lottery first began operating in 1972, and now offers popular games such as: scratchers, Keno!, Daily Three, Daily Four, Mega Millions, and Powerball.
When it comes to revenue, lotteries generate not only large cash prizes for the winners -- they have also become a valuable source of revenue for state governments. Most states usually earmark proceeds to support education and other important state services, or to help charitable organizations.
In Michigan, state lottery laws require the net revenue after payment of prizes and expenses (about 45 percent) to be placed into the state school aid fund which supports the operation of public education programs. Also, you should keep in mind that Michigan law enforces a one-year limit to claim lottery prizes before they are forfeited.
The main provisions of Michigan state lottery laws are highlighted in the following table.
| Code Section | MCL 432.1, et seq. |
| Distribution of Lottery Revenue | After payment of prizes (approximately 45%) and expenses, net revenue to state school aid fund |
| Additional Purpose of Lottery | 10% of yearly state lottery advertising budget not to exceed $1 mil. goes to compulsive gaming prevention fund |
| Lottery Prize Subject to Garnishment | For prizes over $1,000, for liabilities to state or support arrearages |
| Time Limit to Claim Prize/Disposition | 1 year/deposited in state school aid fund and distributed pursuant to law |
| Prohibited Related Activities | Sales to minors; sale at greater price; unauthorized sale; forged/altered ticket |
Note: State laws are constantly changing -- contact a Michigan gaming attorney or conduct your own legal research to verify the state law(s) you are researching.
More Information
For more general information on this topic, feel free to take a look at FindLaw’s article discussing the Details on State Lottery Laws. You can find additional resources by clicking on the links below, which will lead you to an online version of Michigan’s official laws as well as information relating specifically to the Michigan lottery. And, of course, if you are in need of legal advice or counsel, hire or consult a Michigan gaming attorney.
Research the Law
Michigan State Lottery Laws: Related Resources
