Is it legal to hold a poker tournament without a gaming license if I don't take a cut of the pot?

Question

i was planning on holding a small poker tournament in a non-casino building in Michigan. I wasn't going to take a cut of the pot only charge money for people to get in. The pot is a 100% give. Is this legal? It would be a big help if you could also post a link to specific legislature that states the laws about gambling. Thanks.

Answer 1

"...but does not include games played with cards in private homes or residences in which no person makes money for operating the game, except as a player."

That's the key part of the law as it applies to your game.  Because you are looking to hold it outside of a home and make money, it is illegal.  If it's big enough to make it worthwhile for you to run it, it will be big enough for the police to bust it if they get wind of it.  That being said, if you don't publicly advertise it, watch who is coming to make sure nobody who might blab to the cops about it, and only do it once, there is a good chance you'll get away with it.  Personally, I wouldn't take the chance.  Just have the game at your house and make money the old fashioned way, by winning it.

Answer 2

No, it is not legal.  The part at the end of this paragraph sums it up.  To play for money at all, while not in a casino building you'd have to be in a home or residence and make no money for operating the game.  That would qualify a rake or a entry fee as "making money".  Keep in mind that in a poker tournament there is no rake...only an entry fee.

(v) “Gambling game” means any game played with cards, dice, equipment or a machine, including any mechanical,

electromechanical or electronic device which shall include computers and cashless wagering systems, for money, credit,

or any representative of value, including, but not limited to, faro, monte, roulette, keno, bingo, fan tan, twenty one,

blackjack, seven and a half, klondike, craps, poker, chuck a luck, Chinese chuck a luck (dai shu), wheel of fortune, chemin

de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or percentage game, or any other

game or device approved by the board, but does not include games played with cards in private homes or residences in

which no person makes money for operating the game, except as a player.