Consumer protection: other; suspension of lottery licenses; allow for violations of the cryptocurrency kiosk prohibition act. Amends sec. 23 of 1972 PA 239 (MCL 432.23). TIE BAR WITH: HB 5986'26

2025-2026 Regular Session Introduced by Tyrone Carter and 8 co-sponsors

Michigan HB 5987 gives regulators power to suspend lottery licenses for violations and strengthens enforcement against cryptocurrency kiosk operations.

bill electronically reproduced 05/19/2026

#consumerprotection:other #gaming:lottery

Bill Summary: HB 5987 (2025-2026) – Michigan

Purpose and intent

Addresses consumer protection related to gambling and cryptocurrency vending activities.

Specifically amends section 23 of 1972 Public Act 239 (MCL 432.23).

The bill is tied to HB 5986 (as indicated by “TIE BAR WITH: HB 5986’26”), meaning it is linked for consideration or passage with that companion measure.

Key provisions and changes

Suspension of lottery licenses: The bill adds or clarifies authority to suspend lottery licenses as part of consumer protection or regulatory enforcement. The precise mechanisms (criteria, process, duration) would be defined in the text of the amendment to MCL 432.23, but the resumen notes “suspension of lottery licenses” as a central scope.

Cryptocurrency kiosk prohibition act violations: The bill provides for consequences or enforcement related to violations of Michigan’s prohibition on cryptocurrency kiosks. This suggests heightened or specific enforcement provisions for operators who violate prohibitions on cryptocurrency kiosks, potentially including penalties, corrective action, or license-related consequences.

Tie-bar with HB 5986: The two bills are connected, indicating that they are intended to move together or are mutually dependent for passage. HB 5986 likely contains parallel or complementary provisions affecting similar regulatory or consumer protection themes.

Who or what is affected

Lottery licensees and the Michigan Lottery system: By enabling suspension of licenses, licensees would be subject to regulatory action for noncompliance.

Operators and vendors of cryptocurrency kiosks: The bill targets violations of the cryptocurrency kiosk prohibition, impacting operators who may run or plan to run such kiosks in the state.

Potential consumers and the general public: Enhanced enforcement and licensing actions aim to protect consumers from illegal or noncompliant gambling-related activities and crypto kiosk operations.

Procedural and timeline aspects

Introduced: May 19, 2026 (by Rep. Matt Koleszar).

Stage: Referred to the Committee on Regulatory Reform for review.

Sponsorship: Multiple co-sponsors, indicating cross-party or bipartisan interest.

Action history indicates the bill has just entered the legislative process and awaits committee hearings, potential amendments, and floor action.

The tie-bar with HB 5986 suggests concurrent consideration or combined passage with that bill.

Potential impact and considerations

Regulatory leverage: Grants or clarifies authority to suspend lottery licenses for violations, strengthening enforcement capabilities.

Compliance focus for crypto kiosks: Signals a regulatory stance against cryptocurrency kiosk operations and provides a framework for penalizing violations.

Administrative due process: Readers should review the bill text for due process protections (notice, hearing rights) and the standards used to determine violations and license suspensions.

Fiscal and operational effects: Licensure suspensions and enforcement actions could affect lottery revenue streams and market actors in the crypto kiosk space.

Note: For a thorough understanding, consult the bill’s full text to confirm the exact language, thresholds for suspension, penalties, appeal processes, and how it interacts with HB 5986.