Downtown Merchant Group Seeks City Approval for Fundraiser Raffle License

The Downtown Traverse City Association cannot legally run a 50-50 drawing at its upcoming fundraiser without a state raffle license, and it cannot get that license until Traverse City formally says it exists. The City Commission takes up that recognition vote Monday, April 6.

Sara Klebba, the Traverse City Downtown Development Authority's Director of Events & Engagement, submitted the raffle license application on behalf of the DTCA. The request is procedural but consequential: under Michigan's Bingo Act, raffles, door prizes and 50-50 drawings all require a charitable gaming license issued by the Michigan Bureau of State Lottery's Charitable Gaming Division. That license requires the local governing body to first pass a resolution recognizing the organization as a nonprofit operating in the community. The city clerk signs the resolution, which then travels to Lansing alongside the license application.

The DTCA is targeting its Toast to Downtown 2.0 fundraiser as the first event where raffle revenue would be collected. The gathering is set for Thursday, June 5, 6 to 9 PM at the City Opera House under the theme "It's All Fun and Games," described by organizers as a casual evening of connections and camaraderie for downtown businesses, employees and stakeholders.

The stakes for small merchants are tangible. The DTCA, a voluntary association whose mission is to advance the commercial and professional interests of Downtown Traverse City, is funded primarily through membership dues supplemented by event proceeds and sponsorships. Klebba told reporters that Toast to Downtown "is an initiative designed to generate necessary revenue to sustain our association's operations," with the DTCA relying on membership dues, vendor fees and diversified funding sources to deliver the promotions, festivals and foot-traffic programming that downtown businesses count on through the shoulder seasons.

The DTCA operates under a formal management services contract with the DDA, which acts as staff on the association's behalf, marketing the district, organizing events and administering the Downtown Gift Certificate program. Unrestricted raffle proceeds would give the DTCA a more flexible funding tool to scale that work.

Commission recognition does not guarantee a license; the Michigan Lottery Charitable Gaming Division makes the final determination in Lansing. But without the resolution, the DTCA cannot apply at all. Recognition requests of this kind are routine for local governing bodies, and if the Commission acts Monday, the DTCA would submit the signed resolution to Lansing for review ahead of the June 5 event.

Merchants who want to follow developments can attend DTCA monthly board meetings, held the second Thursday of each month from 8:30 to 10 AM, with the next session falling after the Commission's April 6 vote.