Michigan Eyeing To Fast-Track Online Gambling
When Governor Gretchen Whitmer’s House Bill 4311 turned into the Lawful Internet Gaming Act, the original plan was for mobile gaming in Michigan to go live in early 2021. However, it looks like the launch will come sooner, even perhaps in late November.
Michigan online gambling looked like a longshot for 2020. There was no rush at all because sports betting was already allowed in retail shops starting last March. But when the COVID-19 pandemic struck, it forced the casinos to close. With establishments and the state losing millions in revenues, authorities found the need to fast track online gaming.
Fast-Tracked
The Michigan Gaming Control Board discussed the proposed mobile gaming laws in a public hearing last week. According to executive director Richard S. Kalm, they expect to submit the final proposal to the Michigan Office of Administrative Hearings and Rules within the next few days. Once approved or after they are amended, they will go to the state legislature’s Joint Committee on Administrative Rules in October.
Once the proposal reaches the legislature, they will do one of two things: pass them or go through the process of passing a law that would reject the rules. Per State Senator Curtis Hertel, it’s more likely to approve the rules as they are and once that is done internet gambling will go live. For the state, the sooner it is rolled out, the better as Michigan online gambling is expected to generate millions of dollars in revenue for the state.
Ready For Online Gaming
The biggest names in the industry are ready for Michigan online gambling. Gaming companies like BetMGM, DraftKings, and FanDuel are already operating in Michigan. Barstool Sportsbook is planning to launch with Greektown Casino in 2021. More are expected to follow.
Once Michigan legalizes online betting, the state is expected to see exponential growth in that industry, just like what happened to Illinois. Online wagering is going to be a game changer in the gaming business in the state. The pandemic has made it difficult for punters to place bets at retail shops. Having the ability to do so online will change that.
Online Sports Betting in Michigan Likely Delayed Until 2021
Michigan regulators, who are familiar with the previous implementation of new gambling regulations in Michigan, expect it to take approximately one year to solidify the rules for the industry – online poker, online casino games, sports betting, and fantasy sports.
The targeted 2021 completion of the online rules are based on the time it took to develop other rule sets in the past, said Mary Kay Bean, a spokeswoman for the Michigan Gaming Control Board.
While Detroit’s three commercial casinos, as well as the state’s 24 tribal casinos, will all need to obtain the proper mobile sports bettor operating licenses for online gambling, it’s the agency’s goal to launch on-site sports betting this spring.
“We are at a very early stage of this process,” Bean said, according to the Associated Press. “The agency must establish several sets of administrative rules, which pass through many levels of review. The timing of implementation depends not only on our agency but also on decisions other departments, agencies and the Legislature make along the way.”
The rules process could require public hearings, public comments, and regulatory impact statements. In addition, the rules must then lead to a licensing process, which will include vetting and ultimately issuing those licenses.
How Michigan Is Preparing for Legalized Sports Betting
MGM Grand Detroit has prepared for the update by opening their $6 million sports bar, Moneyline, last October. It will have betting windows and self-service kiosks once approved. But Detroit won’t be the only place it will be available.
“We view sports betting as another nice entity that will drive more people to our property,” Mike Bean, the CEO of Saginaw Chippewa Gaming Enterprises with locations in Mount Pleasant and Standish, said, according to the news wire. “Our biggest question right now is when is it all going to be ready?
Penn National Gaming Inc. is the new operator of the Greektown Casino. There have been decades-long agreements with four internet gaming operators because the organization aims to bring sports betting to its 41 locations in 19 states. Two of their locations could potentially operate in the state of Michigan.
“We’re envisioning what (sports betting) could look like if it were passed,” said Eric Schippers, Penn National senior vice president of public affairs. “Michigan is leaving a lot of money on the table it could be generating in tax revenue and benefits that could be funded from this. There’s natural pressure to strike while it’s hot. We’re hopeful Michigan won’t allow itself to get left behind.”
How Does Michigan’s Timeline Fare With Other States?
Pennsylvania, as a point of reference, took approximately two years before its first online poker site was able to launch, but that was on the long-tail of the required amount of time, almost excessively so. One year is more realistic, according to most industry analysts and experts.
The timeline largely is the standard in other states that have legalized online gaming and sports betting, said Rep. Brandt Iden, R-Oshtemo Township, who spearheaded the online gaming package. A similar package took six to eight months to implement in Indiana, he said.
“I’d like it to be a little bit quicker, but that’s probably the timeline,” Iden said.
The in-person sports betting timeline is a good step forward, he said, but it’s not likely the state will experience significant tax revenue until online gambling piece is up and running.
“Until we’re fully integrated online, I don’t think we’ll be able to capitalize on revenue. But from a consumer protection standpoint, from getting players interested, certainly getting up and going in person is helpful,” Iden said.
Michigan’s Online Gambling Laws Are Set to Change Dramatically
For years, certain lawmakers in Michigan have been working to make sports gambling legal. This week, it appears these efforts are finally paying off. Michigan’s online gambling laws are set to change in a major way.
Several new forms of gambling are going to become legal here. It’s extremely exciting news for both casino and sports betting fans around the state. Today, we’re looking at exactly what’s coming here.
Let’s get into it!
Gambling Laws in Michigan, Explained
Michigan is thought of today as a very gambling-friendly state. This wasn’t always the case, though. For many years, lawmakers here only allowed Class II tribal casinos to operate. Eventually, a bill was approved to allow Class III gambling establishments.
This completely revamped the state’s gaming industry. Before long, 19 fully-operational tribal casinos began operating here. They’re hugely popular with both locals and residents of nearby states where casino gambling is banned.
Laws towards online gambling were much more ambiguous here. The legality of online casino gambling and internet sports betting seemed to lie in a grey area. Despite this fact, many individuals continued to make wagers online. Lawmakers realized the state was earning no revenue from these markets and decided it was time for a change.
In 2017, officials presented a bill to make sports gambling legal and regulated. It was nearly approved in 2018 before a veto from the Governor.
Fortunately, things are moving ahead as originally planned. The House Committee approved new measures in September. It appears that Michigan’s online gambling laws are now set to change.
Michigan’s Online Gambling Laws Are About Change
As we just mentioned, lawmakers in Michigan very nearly approved sports betting in 2018. Unfortunately, Governor Gretchen Whitmer vetoed the bill at the last minute. This week, a package of bills is once again being presented to the Governor and this time, it seems highly unlikely she’ll put up any resistance.
Michigan’s Senate Regulatory Reform Committee voted unanimously to approve the bill. State officials agree to the proposed tax bracket for both sports betting and online casino gambling. At the moment, sports betting operators will be taxed at 8.4%. Internet casino operators face a tax between 20% and 28%.
This package of bills also lays out plans to regulate and tax the daily fantasy sports industry.
The majority of revenue earned from this industry will go to help fund schools and other social programs. Sen. Curtis Hertel Jr., a democrat that supports the changes to Michigan’s online gambling laws, commented on the timeline to the media this week.
“The intention is to get this to the governor’s desk and have votes today,” he said. “It makes us like a lot of other states.”
That’s certainly true. More than 20 states have already approved sports gambling legislation. Most of these states have their sports betting operations up and running. If all goes according to plan, Michigan will join these states by the end of the week.
More States Likely to Legalize Sports Betting in 2020
Michigan’s online gambling laws are changing in a major way. Soon, both online casino gambling sports betting will be available to residents. This is far from the only state making changes, though. It’s likely that many more states change their laws in 2020.
Lawmakers around the country are simply realizing how much money can be earned with gambling expansion. New Jersey, which was one of the first states to allow both online sports betting and casino gambling, is now earning millions of dollars every month by taxing this industry.
Even small states such as Rhode Island are earning an impressive amount of money thanks to the legalization of sports betting.
Several states are on-track to legalize sports betting next year. Many believe that Massachusetts is heading in this direction. This state is well-known for having one of the most passionate sporting fan bases in the country. The legalization of sports betting here would likely bring in major revenue earnings each year.
Some believe California has a chance to legalize this industry, as well. Unfortunately, lawmakers are in a legal quarrel with Native American tribes over the matter.
Michigan’s online gambling laws will completely change this week. Gambling fans are about to have a whole new list of options to make wagers.
Stay tuned for more US casino news over the next few months!
