A bipartisan group of senators in Michigan want to legalize certain social bets, such as squares or bracket pools.
Under SB 511, it would no longer be considered a misdemeanor in Michigan to run a betting contest if it abides by seven rules, including entry fee limits of $25 or lower and no rake be taken. The bill would establish legal guidelines for offering March Madness college basketball pools or Super Bowl square contests.
The bill was heard by the Senate Regulatory Affairs committee on Sept. 18 but no vote was taken. Representatives from three Michigan gaming tribes – Saginaw Chippewa Indian Tribe, Gun Lake Tribe and Nottawaseppi Huron Band of Potawatomi – were opposed to the bill.
Michigan’s legislative session runs through the end of the year. Bills can be carried over into 2026.
Rules for legal Michigan social bets
SB 511 says the misdemeanor language does not apply to a game, wager or other transaction as long as they hit each of these guidelines:
- The contest is “incidental to a bona fide social relationship.” In other words, the contest must be run between genuine friends, coworkers or acquaintances.
- Contest is capped at 100 participants.
- The organizer of the contest must be one of the participants. The organizer cannot benefit from running the contest other than winning prize money.
- Entry fees are capped at $25.
- The entire prize pool goes to one or more winners.
- No other money beside the entry fee or thing of value can be used to participate in the contest.
- The event that is being wagered on does not occur within a “gambling establishment, restaurant, entertainment or bar.” The event cannot be a promotional opportunity to drive business.
Failing to satisfy any of those requirements means running the contest would be a misdemeanor with a fine of not more than $5,000, up from $1,000 in the original language.
