Michigan Compiled Laws

Mich. Comp. Laws § 432.9 (2026)

State lottery; establishment and operation; maximum revenues; bids and contracts for equipment and services; prohibited activity; joint enterprises; education and treatment of compulsive gamblers.

✓ current as of July 2026

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MCCAULEY-TRAXLER-LAW-BOWMAN-MCNEELY LOTTERY ACT

Act 239 of 1972

432.9 State lottery; establishment and operation; maximum revenues; bids and contracts for equipment and services; prohibited activity; joint enterprises; education and treatment of compulsive gamblers.

Sec. 9.

(1) The commissioner shall initiate, establish, and operate a state lottery at the earliest feasible and practicable time. The lottery shall produce the maximum amount of net revenues for the state consonant with the general welfare of the people. The commissioner shall solicit bids from financially responsible vendors of data processing equipment and services for the operation of the lottery and may contract with the approval of the state administrative board.

(2) The commissioner shall not conduct a lottery based upon an activity that utilizes the mechanical, physical, or mental skills of the participant and that is traditionally regarded as a sporting event.

(3) The commissioner may participate in joint enterprises with other sovereignties so long as the commissioner determines that the joint enterprise is designed to produce the maximum amount of net revenues for the state consonant with the general welfare of the people. The commissioner shall only participate in a joint enterprise agreement that provides that the commissioner may discontinue participation in the agreement if he or she determines it to be necessary. The commissioner shall report to the legislature every 6 months on the progress of the joint enterprise agreement.

(4) The commissioner shall submit a proposal to develop a program for the education and treatment of compulsive gamblers to the legislature within 6 months after the effective date of this amendatory act.

History: 1972, Act 239, Imd. Eff. Aug. 1, 1972 ;-- Am. 1987, Act 62, Imd. Eff. June 25, 1987 ;-- Am. 1991, Act 165, Imd. Eff. Dec. 19, 1991 ;-- Am. 1996, Act 95, Eff. Mar. 31, 1997 ;-- Am. 1996, Act 167, Imd. Eff. Apr. 17, 1996

Compiler's Notes:

For transfer of the Bureau of State Lottery from the Department of Management and Budget to be an autonomous entity within the Department of Treasury, see E.R.O. No. 1991-2, compiled at MCL 12.161 of the Michigan Compiled Laws.

PopularName Notes:

Lottery Act

Notes of Decisions

Cited in 5 cases, 1988–2004 · leading case: Taxpayers of Michigan Against Casinos v. State, 685 N.W.2d 221 (Mich. 2004).

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Taxpayers of Michigan Against Casinos v. State, 685 N.W.2d 221 (Mich. 2004). · cites it 2× “[14] MCL 432.9. [15] See MCL 432.201 et seq. [16] MCL 432.”

Bukhtia v. Bureau of State Lottery, 475 N.W.2d 475 (Mich. Ct. App. 1991). “There is little question but that the purpose of the lottery is to generate revenue: "The lottery shall produce the maximum amount of net revenues for the state consonant with the general welfare of the people.”

Paulsen v. Bureau of State Lottery, 421 N.W.2d 678 (Mich. Ct. App. 1988). “MCL 432.9; MSA 18.969(9). In MCL 432.11; MSA 18.”

Taxpayers of Michigan Against Casinos v. State, 657 N.W.2d 503 (Mich. Ct. App. 2003). “, and established and operates a state lottery, MCL 432.9, that is promoted through advertising.”

In Re D'Amico Est., 429 N.W.2d 659 (Mich. Ct. App. 1988). “In view of the similar governmental objectives of raising state revenues when either issuing government bonds or conducting a state lottery, see MCL 432.9; MSA 18.969 (9), application of the above principles to the issue of lottery winnings payable to a deceased prizewinner’s…”

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