Farmington Hills — On Wednesday, May 28, Michigan Governor Jennifer Granholm signed HB 5102, Public Act 144 of 2008 into law. It  amends the Lottery Act to prohibit a licensed lottery sales agent from giving or offering to give any money or other thing of value to the holder of a lottery ticket.  The act takes immediate effect.

Jane Shallal, president of the Associated Food & Petroleum Dealers, provided testimony to the Michigan House and Senate to explain that some retailers, in order to stimulate lottery sales, advertise that they will augment the lottery payout — over and above the amount provided by the Michigan Lottery — to anyone who purchases a lottery ticket at their store and then wins a prize.  However, the practice puts pressure on other retailers to participate in the increased payouts and has led to numerous other problems.

“Since the practice is outside of all state regulation and supervision, it leads to inconsistent payouts, which over time will undermine confidence in the fairness and evenhanded administration of lottery games,” said Shallal.  “The practice is also susceptible to misrepresentation, fraud and abuse.  AFPD applauds the Michigan Legislature for its swift action on this bill,” Shallal added.

Public Act 144 of 2008 now states that a licensed lottery sales agent is “prohibited from offering to give, or from giving, any money or other thing of value to the holder of a lottery ticket or a share of a lottery ticket for winning the lottery.  The sales agent would still be allowed to pay the amount of the prize, if such payment by a sales agent is authorized by the Lottery Commissioner.”  Any retailer making an additional payout is in violation of state law.  Cash prizes worth up to $600 may still be claimed at any Michigan Lottery retailer, although retailers are under no obligation to redeem those prizes.

Failure to comply with the new amendment allows the Michigan Lottery Commissioner to suspend or revoke the license of an agent who violates the act.

The Associated Food & Petroleum Dealers is the voice of the food, beverage and fuel industries in Michigan and Ohio.  Representing nearly 4,000 retailers, wholesalers, distributors and manufacturers since 1910, AFPD’s executive offices are in Farmington Hills, Michigan, with branch offices in Lansing and Dublin, Ohio.