State Gaming Board Suspends Charity Poker Supplier’s License

The Michigan Gaming Control Board said it temporarily suspended the license of  Aces Gaming, the state’s largest charity poker game supplier, after the company allegedly admitted to side agreements that diverted more than $1 million to a Northville race track and a Lansing bar.

The state said in a news release that Millionaire Party Games at Northville Downs Race Track and Tripper's bar in Lansing are on hold for 30 days, the duration of Aces Gaming’s license suspension. Aces admitted in writing that its agreements with the two venues were illegal and in violation of the Bingo Act.

The charity poker games have been under investigation since late 2013.

According to records, chip sales at the two venues totaled more than $76 million from 2010-2013.

Aces Gaming, which by law, may only charge charitable organizations “reasonable and necessary” expenses for dealers and equipment  to assist charities in running poker games, systematically diverted a percentage of the profits to the two venues and to a consulting company owned by former state Sen. Doug Cruce, according to the news release.

Cruce, a Troy Republican who served in the state Senate during the 1980s and 1990s is the founder and current adviser to the Michigan Charitable Gaming Association.

However, Aces Gaming co-owner Heather Schuchaskie told the Detroit Free Press the Gaming Control Board is twisting the facts and is retaliating for the Aces Gaming’s opposition to changes in charitable gaming rules authorized earlier this month by Gov. Rick Snyder.

They’re implying that we took money from charities and put it someplace else,” Schuchaskie told the Free Press. “We didn’t divert funds. … We didn’t do anything but help the charities raise close to a million dollars a year, net.”

She also denied that Aces Gaming signed any documents admitting wrongdoing.

Steve Tripp, who owns the Lansing bar where charity games are on hiatus, said the charity games have “been a loss leader for me, but I do it because it’s for the charities.”

He told the Free Press he loses about $100 every day because of charity gaming.

According to the state, records show that from 2008-2012, approximately $525,000 was diverted to Northville Downs; approximately $562,000 to Trippers ownership; and approximately $516,000 was paid to Cruce via his consulting company, for a total of over $1.6 million.

Cruce said $1.6 million would not be an unreasonable salary during the period.  “They imply it was criminal activity,” he told the newspaper, “but it wasn’t criminal at all.”

The money changed hands as a result of long-standing operating agreements between the venues that state gaming officials are well aware of, the consultant and Aces Gaming, Schuchaskie, Tripp and Cruce told the newspaper.

The Free Press tried, but was unable to reach Northville Downs or the Gaming Control Board for comment.

Charities can rent a location and hire a supplier to assist.

“However, when the location and the supplier collude, use the charity’s license to operate a card room casino without any oversight, multiple issues occur,’ the Gaming Control Board said. “These have ranged from illegal diversion of funds, fraud, falsifying state records and multiple criminal acts.’  

According to the news release, the Gaming Control Board and  state Lottery have shut down poker games at 23 locations for various violations and crimes since 2010, according to the release This interrupts the charities’ ability to raise funds and adversely affects the integrity and fairness of the gaming, officials said.

Aces Gaming Supply will not be allowed to operate until Aug. 10.

No millionaire party events will be permitted at Northville or Trippers during that time.