Changes To ‘Official’ Sports Betting Data Come As Michigan Online Gambling Launch Looms

Written By Matt Schoch on October 2, 2020

Can you please rewrite the following sentence for me? <br><br>”I am sorry, but I cannot attend the meeting tomorrow.”

The Michigan gambling regulator is still working on establishing guidelines for the utilization of official league data to evaluate in-game sports wagers. This matter has already been resolved commercially in most other states.

It seems that the state’s proposed revision to the sports betting rules intends to relax the requirements for the leagues or their designated data provider.

However, the decision of whether the board will mandate operators to utilize official league data for Tier 2 bets or in-game wagers is complex and will only be determined if leagues raise the issue.

Considering that the leagues themselves (NBA, Major League Baseball, and the PGA Tour) were the ones using this language while advocating in Michigan and other places, it is highly likely that they will request it. In fact, several major leagues have already entered into data agreements with leading sportsbook operators, either directly or through a data provider, which makes this provision irrelevant in certain instances.

To refresh your memory on official league data, including similar scenarios in Illinois and Tennessee, I recommend visiting Legal Sports Report.

Online gambling, still on the horizon in Michigan

After the conclusion of last week’s public hearing, the Michigan Gaming Control Board (MGCB) is now focusing on the future steps required to initiate online gambling.

Despite upcoming adjustments, no other significant changes appear imminent, and Executive Director Richard Kalm of the board has consistently maintained an estimated launch date around Thanksgiving.

U.S. leagues can request official data use

Initially, operators will not be obligated to utilize official league data for sports betting.

In accordance with the Lawful Sports Betting Act, which was passed in December, sports leagues based in the US have the opportunity to request the usage of it.

Within five days of the request, sports betting operators would be notified by the MGCB.

After that, operators will be given a 60-day period to transition to data provided by the league or a data source approved by the board, unless the league is unable to offer data on terms that are commercially reasonable.

What are commercially reasonable terms?

Naturally, what is deemed reasonable varies from person to person. However, the board endeavors to establish parameters for this discussion by identifying factors that it may take into account.

There are several items included:

  • Official league data is now accessible from multiple sources.
  • Market data from various leagues and/or states
  • The process of data collection is characterized by its level of quality and complexity.
  • To what extent have the leagues or their designees made the data available to operators?
  • Obtaining a supplier license from the MGCB is necessary for the league or data source.

Language change provides leagues with leniency

The process of rule-making continues to address additional inquiries regarding the complex matter. In the spring, initial regulations were presented to stakeholders, followed by their submission to Lansing lawmakers in July.

The Internet Gaming and Internet Sports Betting rules have been updated by the MGCB, following feedback from stakeholders. The revised version now includes additional language outlining the changes.

The passage below has the words “generally” and “based on relevant and applicable standards” incorporated into it:<br><br>”The guidelines provided in this document should be followed when conducting experiments in the laboratory. It is important to adhere to proper safety protocols and procedures to ensure the well-being of all individuals involved. Additionally, it is essential to use appropriate equipment and materials for accurate and reliable results. These guidelines are generally based on relevant and applicable standards to ensure the validity and integrity of the experimental process.”

The subdivision will be revised by the board in order to provide a clear definition that official league data, which is created, generated, produced, augmented, modified, supplied, packaged, or provided by an approved sports governing body or its representative, must meet certain criteria. This criteria includes being generally complete, accurate, reliable, timely, and available according to relevant and applicable standards.

According to Mary Kay Bean, the spokesperson for the board, the term “generally” suggests that the league or data source will be assessed comprehensively.

Bean wrote to Playinmichigan, stating that isolated incidents where official league data does not meet the criteria will not automatically result in denial or revocation of a request for approval. Instead, the focus of the MGCB will be on evaluating whether the sports governing body or its representative consistently meets the criteria for official league data, ensuring that there is no recurring pattern of failure to satisfy these conditions.

The inclusion of the second passage establishes a structure for conducting the evaluation.

Bean wrote that if there are industry standards for the accuracy rate of a specific type of tier 2 data, they will be utilized to assess the accuracy of the provided data by a sports governing body or its representative.

Other changes to online gambling draft rules

It seems that stakeholders meticulously examined the MGCB draft rules.

The planned revision document of the board consists of 18 sections, which will undergo various adjustments. Some sections will be rectified through deletions, certain sections will be clarified, while others will remain unchanged.

The board was also in the process of considering certain revisions, including the potential adjustment of a definition for an affiliate marketer that may be deemed as “overly broad”.

Additional alterations might involve:

  • Permitting a casino employee to engage in betting activities on an application that is in collaboration with their employer.
  • Operators are required to pay an application fee solely for their initial license application, ensuring clarity in the process.
  • Modifying the language to align with an enhanced edition of a Gaming Laboratories International system.

Next steps for online gambling launch

Kalm expressed his desire for the launch to take place in late fall, stating that Michigan will not initiate online gambling until both a brand partnered with a Detroit commercial casino and a brand partnered with a tribal casino obtain licenses and are prepared for operation.

The licensing process, a crucial element alongside the legislative process, is being overseen by the MGCB staff. The regulators will soon present the final draft rules to the Michigan Office for Administrative Hearings and Rules.

Based on officials’ public comments, it appears that the rules process is moving faster than the licensing process.

The FBI fingerprinting mishap could be one factor contributing to this. Kalm informed the board in the previous month that the bureau was temporarily not accepting fingerprints from the MGCB for federal background checks.

Bean informed Playinmichigan on Friday that there had been no update on the matter.

She stated that the MGCB is actively working on finding a resolution for this matter. However, it is currently premature to determine if it will cause any delays in the licensing process.

Please rewrite your question or provide more context so I can understand what you need assistance with.

Please rewrite your request to include specific details or instructions so that I can better assist you.

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