Wednesday saw Michigan’s Senate Regulatory Reform Committee hold a hearing on the subject of online poker. The committee discussed Senate Bill 889 (“Lawful Internet Gaming Act”) which was introduced less than a month ago by Republican State Senator Mike Kowall, as well as Senators Hertel, Warren, Johnson and Knollenberg.
The hearing lasted around 90 minutes and speakers included PPA’s John Pappas, who stressed the importance of a regulated industry, as well as Amaya’s Steven Winters. No vote was taken on the measure, but participants said that the hearing was “a great first step” towards a legal and regulated industry.
The bill calls to:
Create the lawful internet gaming act; to require the licensing and certification of persons to engage in internet gaming; to create the division of internet gaming; to provide for the powers and duties of internet gaming and other state governmental officers and entities; to impose fees; to impose a tax on the conduct of internet gaming; to create the internet gaming fund; to prohibit certain acts in relation to applications for licenses and certification and in in relation to internet gaming and to prescribe penalties for those violations; to require promulgation of rules; and to provide remedies.
Under the terms of the act, online casinos will only be allowed to be operated by Michigan’s commercial casinos and tribal groups. Up to eight operators will be allowed to obtain licenses from state authorities. A successful license application will be valid for five years, and will cost the operator $5 million in fees. Michigan will also slap a 10% tax on gross gaming revenue made by online poker operators. Games will not be limited to online poker only and players will have access to other online casino games as well.
Michigan is no stranger to reforms in the field of gambling, especially when it comes to taking the industry online. It was one of the first states to allow online lottery sales after the federal government reinterpreted the controversial Wire Act in 2011. It has also progressed in the area of online payment processing by allowing Michigan Lottery players to fund their lottery accounts using PayPal.
Lawmakers are pushing to advance Michigan’s gambling industry in order to give it a competitive edge and to drive growth, which remains stagnant, or in some areas even shrinking. Casinos in Detroit, for example, have reported lower revenues in recent years, although they still generate around $1.35 billion in gaming revenue annually.
