The state of Michigan emerged as a dark horse in the race to bring online gambling to individual states this year. Almost without warning, efforts were suddenly being made to pass legislation that would make a legal and regulated online gambling industry a reality in the Great Lakes State. Although things aren’t moving as fast as lawmakers had hoped, it can still be said with certainty that Michigan’s dreams to introduce igaming are still alive in 2017.
Earlier this year, Senator Mike Kowall picked up on last year’s brief effort to introduce an online gambling bill and starting pushing his own SB 0203.
What did SB 0203 propose?
- Legal intrastate online casino games and poker within Michigan’s borders, for Michigan residents.
- Existing commercial brick-and-mortar casinos will be allowed to apply for an operator’s license.
- Tribes who own casinos will also be allowed to apply for licenses; however they will need to waive their sovereign immunity if they wish to be part of Michigan’s online gambling setup.
- A 10% tax rate on revenue from online gambling.
What didn’t SB 0203 address?
- The bill failed to address the actual way that a new online gambling industry would be regulated.
- While the Michigan Gaming Control Board was given the responsibility – and a year’s time – to decide how the industry would be regulated, no guidelines were provided by the bill.
Where does SB 0203 stand now?
As soon as the online gambling bill was introduced, it was an almost instant success with the Senate Regulatory Reform Committee and practically sailed through with maximum support. It was another story for the bill’s continued journey, however. Once it left the Senate Committee, SB 0203 started to languish in the legal passageways, where it seems to be stuck right now.
So are online gambling efforts in Michigan dead right now?
Here’s the good news. There is still hope for legal online gambling and poker in Michigan, and that hope comes in the form of a new bill that pumped some life into ongoing efforts. In early September, House Rep. Brandt Iden introduced HB 4926, a bill very similar to SB 0203 although there are a number of changes.
Main features of HB 4926:
- Does not provide a framework for online gambling regulation.
- Has a clause requiring online gambling operators to offer online poker.
- Allows Michigan to negotiate interstate agreements with other regulated states so as to increase player liquidity.
- Licensed igaming operators will need to pay a 15% tax rate on revenues.
Where does HB 4926 stand now?
In September, the bill was passed to the House Committee on Regulatory Reform and is waiting to be voted on. Watch this space for further updates about Michigan’s online gambling efforts.
