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According to a state regulator, Michigan may witness the launch of iGaming and online sports betting in November, even without the implementation of emergency rules.
According to Richard Kalm, the executive director of the Michigan Gaming Control Board, the projected launch date of early 2021 could be conservative due to the simultaneous progress in licensing and rule-making processes. Kalm shared with Playinmichigan that the ongoing developments might allow for an earlier launch than initially anticipated.
Kalm stated that they are aiming to initiate the licensing process slightly in advance of the regulations. He mentioned that due to their extensive experience, they have already identified certain requirements that will be necessary.
During the COVID-19 pandemic, Michigan’s 26 casinos have been unable to operate, leaving online sports betting and iGaming as one of the few options to generate revenue and stay afloat in the industry.
2020 is undeniably going to be a challenging year for casino revenues. However, online gambling might emerge as a ray of hope during the fourth quarter.
Kalm: Emergency rules may not impact anyways
Democratic Gov. Gretchen Whitmer has been urged by stakeholders and certain Republican lawmakers to implement emergency regulations in order to expedite the launch.
Despite previous attempts, the office informed stakeholders via email last week that the current situation does not meet the necessary criteria for emergency rule-making.
Kalm, who was initially appointed by former Democratic Gov. Jennifer Granholm in 2007 and later reappointed by former Republican Gov. Rick Snyder, expressed his agreement with the governor’s office’s determination.
He stated that the emergency rules must align with Michigan law and prioritize health, safety, and welfare. Currently, he does not believe that the necessary criteria are present.
Online gaming will not be primarily governed by the emergency rules.
West Virginia has implemented emergency regulations to expedite the launch of iGaming, granting regulators the power to issue temporary licenses while finalizing the rules.
According to Kalm, the Michigan board granted interim licenses for the retail sports betting launch in March. However, he mentioned that the implementation of emergency rules might not accelerate the licensing procedure.
Draft rules already sent to stakeholders
According to Kalm, the board has been engaged in ongoing discussions with Detroit’s three commercial casinos regarding online gambling regulations. Additionally, numerous Native American tribes in Michigan, recognized by the federal government, have already established agreements with operators and platform providers for their online gambling ventures.
In late April, the MGCB distributed draft rules for internet sports betting and iGaming to stakeholders. Additionally, a letter outlining licensing procedures was also provided, dated April 22.
According to Kalm, the supplier license applications will be accessible on the board’s website by Friday. He also mentioned that the board is currently gathering feedback from the state’s casinos regarding the regulations.
He mentioned that they have received input and feedback regarding the rules, which means they will be able to establish a set of rules in the near future. However, what requires more time is the licensing process that follows once the rules are finalized.
According to Kalm, the rules are fairly simple because they incorporated elements from regulations implemented in Indiana, New Jersey, and Pennsylvania as their guidelines.
Kalm explained that we borrowed ideas from them because many of these operators and platform providers have already successfully operated in similar environments. He added that, for the most part, nobody was surprised or shocked by the operating conditions and did not express any concerns about adapting to them.
This is highly beneficial because the sooner we receive feedback and establish the rule set, the faster we can initiate the pipeline and anticipate the occurrence of all those other events.
Stakeholders are required to submit their comments by Friday for the board’s review, as stated by Kalm.
Rule-making process is long, can be expedited
In Michigan, there is a rule-making process that typically takes around 373 days from the initiation of the draft rules process until they are filed by the Office of the Great Seal.
According to Kalm, certain components of the process carried out by either the state’s Joint Committee on Administrative Rules or the Administrative Rules Division may be accomplished faster than what was initially estimated.
Kalm mentioned that these factors are somewhat outside the jurisdiction of the gaming board in terms of rule-making. He expressed that if they are open to a meeting to accelerate the process, and if we manage to navigate through it swiftly, then the implementation will be faster.
Kalm mentioned that the Joint Committee of Administrative Rules has previously waived the requirement of waiting for 15 session days for final approval at a later stage in the process.
He stated that this could reduce the timeline by three weeks or a month, placing us firmly within the November or December timeframe. Furthermore, the feedback from all parties involved has been positive, eliminating the need for a rewrite or a lengthy negotiation process.
Online horse racing betting should be faster
Last week, the board mandated that online operators must obtain a license for advance deposit wagering on horse racing.
According to Kalm, the licensing process for operators, which will occur subsequent to reaching agreements with Northville Downs and two horsemen’s associations, will be quicker than online gambling.
Kalm mentioned that once they partner with one of the platform providers, they anticipate a quick and efficient process. Their main goal is to bring this opportunity back to Michigan.
Ensuring that Michigan, the Michigan horsemen, and the track receive their fair share and make the technology accessible to the public is the only remaining task, as the technology is already in place.
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