Michigan Sports Betting & iGaming Bills A Signature Away From Reality

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Written By Derek Helling on December 11, 2019Last Updated on January 8, 2020
Michigan poised to pass gambling expansion bills

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The Michigan gambling expansion bills are once again on the verge of becoming law, with the governor’s signature highly likely this time, unlike in the past.

There are strong indications that Michigan Gov. Gretchen Whitmer will sign the bills legalizing iGaming and online sports betting, although the exact timing remains uncertain. On Wednesday, all the bills successfully passed both the Wolverine State House and Senate.

What’s in the Michigan gambling expansion bills

The Wolverine State will experience a significant increase in legal gambling through a package of bills. This expansion encompasses various forms such as daily fantasy sports, internet gambling including slots and table games, online poker, and sports betting.

After months of negotiations among gaming operators, legislators, and Whitmer, the package was approved on Wednesday by both the Michigan House and Senate. Within the bills, there are both victories and setbacks for all parties involved.

The largest victory is claimed by lawful sportsbook operators. In the concluding negotiations, legislators decreased the tax rate to 8.4%, while the licensure fees remained stagnant at $50,000 for application, $100,000 for the initial license, and $50,000 for renewal.

The tax rate for DFS operators will be consistent for everyone. Nonetheless, their license fees are much less burdensome, with an initial licensing cost of $10,000 and an annual renewal fee of $5,000.

In order to secure Whitmer’s support, the tax rate for online poker, slots, and table games is set at 23%. Additionally, an extra 3.25% will be allocated to the city of Detroit, resulting in an overall effective rate of 26.25%. Despite being a substantial rate, it was deemed necessary to gain Whitmer’s approval.

Making this all a reality is contingent upon her signature, which, at this stage, appears to be a mere formality.

Gov. Whitmer ready to make gambling history in her state

Tiffany Brown, Whitmer’s spokesperson, states that the ink will dry rapidly.

The governor expresses satisfaction with the advancements achieved in the gaming sector throughout this year, especially when Sen. Hertel and Rep. Warren successfully addressed and resolved crucial matters to ensure the successful implementation of this package. This collaborative effort resulted in a favorable bipartisan solution to a complex issue, and the governor eagerly anticipates thoroughly evaluating this package upon its arrival at her desk.

Whitmer’s choices extend beyond simply signing or vetoing the bill in its entirety. The governor of Michigan holds line-item veto power under the state’s constitution, enabling her to selectively approve the bills by excluding any objectionable sections before signing them into law.

She has already exercised that power once, when she excluded several items from her final version of the state’s budget for the current fiscal year.

However, unless she deviates from the expected path, most of the significant components of these bills are likely to be enacted into law in the near future. Nevertheless, there is one specific piece of legislation that remains contentious.

HB 4307 and why it’s a problem for the state government

1996 stands as a landmark year in the history of legal gambling in Michigan, as it witnessed a notable transformation in the state’s legal framework to permit the establishment of commercial casinos.

One provision in the law criminalizes political contributions by gambling corporations in Michigan. House Bill 4307, which was included in the package submitted to Whitmer on Wednesday, seeks to remove this provision.

Although there is a possibility that Whitmer may veto the bill, it is improbable that she will actually do so. This concession to the gaming industry in the Wolverine State is essential for gaining their agreement on the tax structure.

In the event that this bill is passed into law, it would dismantle the barrier that previously prevented gambling funds from directly influencing Michigan politics. It is true that a loophole has always allowed gambling company executives to donate to political causes as private individuals. Nonetheless, this alteration could be seen as a regression in the effort to minimize the influence of special-interest money in state government.

Whitmer will be the center of attention for all of Michigan at the moment, as her signature has the potential to bring about a significant shift in the current state of affairs.

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