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Michigan State Lotteries Laws

Most states now have official lotteries, which are games of chance that award cash prizes. The proceeds usually are earmarked for education or other important state services, and codified by state law. 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. Also, 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.

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