Michigan came one step closer to becoming the fifth state to legalize and regulate online gambling, when its House approved a related bill. The Lawful Internet Gaming Act now moves to the Senate after receiving House support of 68-40. The law calls for the regulation of certain licensed casino games and, once it receives the Senate’s blessing, the only thing standing in its way is a signature by the state governor.
Some of the key features of the Lawful Internet Gaming Act are as follows:
- Online gambling will be open to all Michigan adults aged 21 years and older.
- Betting would take place via existing Michigan casinos.
- The Michigan Gaming Control Board will create a sub division known as the Division of Internet Gaming.
- The Board will be responsible for issuing licenses to online gambling operators.
- Land casinos will be required to pay an application fee totaling $100,000.
- The initial license will cost operators $200,000, plus an extra $100,000 each subsequent year.
- An 8% tax on gross gaming turnover will be charged to online gambling license holders.
- The bill applies to casinos in Detroit, as well as the 23 tribal casinos.
- If and when Michigan decides to legalize sports betting, the bill covers this as well.
Michigan believes that licensing and regulating online gambling will bring in much needed funds for the state. The city in which the host cost is located will be given 55% of the tax. Another 5% will be allocated to education, 5% to Michigan’s transportation fund and the final 35% to an as-yet-to-be created Internet Gaming Fund, whose role it will be to regulate the online gambling legislation.
Rep. Brandt Iden, who tried to introduce the bill last year but didn’t find much support for it, is optimistic that things will go smoother this year.
“People in Michigan are already gambling over the internet, but they are doing so at risky and illegal websites,” he said. “The Michigan websites will have strict state oversight, unlike the illegal and unregulated sites our residents use now.”
Iden managed to get the bill onto the House floor in the nick of time before it broke for the summer. He will now need to wait for the fall session to bring it before the Senate.
