Gretchen Whitmer Is Back At The Negotiating Table On Gambling Expansion

Written By Derek Helling on November 15, 2019Last Updated on January 8, 2020
Gretchen Whitmer joins discussion on iGaming bills

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Governor Gretchen Whitmer of Michigan has joined the discussion, and now it remains to be seen how long she will remain and what strategies she will employ.

The potential legalization of sports betting and/or iGaming in the Wolverine State is generally seen as a positive development. However, the extent of its success is still uncertain.

Why it’s important for the Michigan governor to be involved

The fate of iGaming and sports betting bills in the Michigan Senate hinges on Whitmer’s support or lack thereof. The Senate aims to avoid a recurrence of January’s events.

By January, a gambling expansion bill had been approved by the Legislature, aiming to legalize both forms of gaming. However, the bill faced a veto from the then-Governor, Rick Snyder.

In order to prevent a similar occurrence, the Senate is currently open to receiving feedback from Whitmer. Senators such as Curtis Hertel Jr. are unlikely to proceed with a vote on either bill until they are confident that Whitmer will sign them.

The reason the House passed the sports betting bill and the iGaming bill separately is primarily due to Whitmer’s greater readiness to accept the former over the latter.

Whitmer has expressed financial concerns regarding both bills, suggesting that higher license fees and tax rates be implemented for both forms of gaming compared to what the Legislature has proposed.

In order to satisfy her, the Senate may consider revising those numbers. Currently, the tax rates for tribal casinos stand at 8.75%, while commercial casinos are taxed at 12%.

The existing legislation additionally requires a gaming license fee of $100,000 and an annual license renewal fee of $50,000. Whitmer expressed her desire for tribal casinos to receive 15% and commercial casinos to receive 18.25% of the revenue. Furthermore, she proposed a license acquisition fee of $1 million and a renewal fee of $500,000.

Should the Senate make changes to align with Whitmer’s desires, the bill(s) will need to be sent back to the Michigan House of Representatives for a subsequent vote. Nonetheless, this is expected to be a mere procedural step, considering that House representatives are already kept updated on the ongoing negotiations.

With everyone now gathered at the table, Hertel’s optimism for the process’s eventual success has surged. Should his wish come true, swift progress is within reach.

Updated potential timeline on gambling expansion

Hertel expresses his desire for the bills to advance from the Senate to Whitmer’s desk this week before the Legislature goes on break for Thanksgiving. Nonetheless, he acknowledges that next month might be a more realistic timeframe.

His goal is to convert the bills into law before the calendar turns over to the new year, regardless of the circumstances.

Hertel expressed his optimism, stating, “Our efforts are yielding progress. With determination, we will ensure the completion and signing of these bills, granting people access to all these provisions at the start of the upcoming year. Our objective is to have sports betting available before the Super Bowl, regardless of the Lions’ participation.”

The presence of the law before New Year’s Day does not guarantee the availability of legal bets in Michigan by Super Bowl Sunday. The state’s gaming control board might require additional time to create regulations, handle license applications, and ensure adherence to the law.

The future involvement of the board in those tasks will depend on the discussions between Whitmer and legislators in the upcoming weeks. The inclusion of Whitmer in the negotiations is a positive indication for the potential success of the bills.

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