Go directly to the main content.
For quite some time, we have speculated that Michigan online gambling would likely be launched in late November at Playinmichigan.
Nevertheless, given the lack of positive developments at the Michigan Gaming Control Board meeting held on Tuesday and the cancellation of Thursday’s congressional meetings, it is becoming increasingly evident that December is a more realistic timeframe for the launch of online sports betting, casinos, and poker.
However, it is possible that this is overly optimistic thinking. It is also conceivable that the opening could be delayed until early 2021.
As it stands now, online gambling does not have the odds in its favor, but there are still reasons to be optimistic about 2020.
1. What is the status of Michigan’s online gambling rules?
The launch of online gambling is facing challenges on two fronts: licensing and the state legislature. Currently, licensing is in progress; however, gambling operators are unable to obtain licenses until the legislature approves the rules.
Now we arrive in Lansing, where the Joint Committee of Administrative Rules is currently reviewing the regulations for internet sports betting and internet gaming. JCAR has a limited timeframe of 15 session days to either approve the rules or return them to the MGCB for further consideration.
On October 8, the rules were submitted to JCAR, and the gaming board made a request to the committee, asking them to waive the requirement for a session day.
In addition, JCAR has the authority to suggest modifications to the MGCB, voice objections to the regulations, or return the law to both houses.
During legislative sessions or in between, JCAR, consisting of 10 members from the state’s Senate and House of Representatives, has the authority to convene.
While no objections have been raised publicly, it is worth noting that none of the 10 JCAR members played a significant role in the development of the legislation. This could potentially be attributed to differing priorities as we approach the new year, which may necessitate a re-evaluation and adjustment of the JCAR process.
Kalm expressed optimism on Tuesday that there would still be bets allowed on February’s Super Bowl.
Kalm informed the MGCB, “I believe we are starting to make progress.”
There is a group of legislators who played a role in passing this bill, and they are filled with enthusiasm to witness its implementation. They are actively engaged in discussions regarding its progress. Consequently, as negotiations continue within the legislature, we maintain a positive outlook, hoping for a waiver that will allow us to commence with the bill’s execution.
2. How did Michigan get to this point?
Almost a year has passed since the expanded gambling bills were signed into law by Gov. Gretchen Whitmer in December 2019.
Originally, the plan aimed to introduce retail sports betting in early 2020 and provide access to sports betting, casinos, and poker in Michigan’s online realm by early 2021.
However, the closure of Detroit’s casinos due to the pandemic shortly after the launch of retail sports betting made it evident that online gambling should be implemented sooner rather than later, following five months of closure.
There is a pressing need for revenue influx in the public coffers, and Michigan has identified a potential new source that could generate a substantial amount. With the potential to reach figures in the nine digits, there was optimism that a launch in November 2020 could occur solely based on this reason.
The MGCB staff commenced their work, recognizing that drafting new rules and undergoing the necessary process is a time-consuming endeavor.
Pennsylvania serves as an example, as the law allowing online gambling was enacted in October 2017, but it took nearly two years for online casinos to finally launch in July 2019. While certain states have managed to expedite the process, such instances are not commonplace.
Additionally, it is important to note that Michigan, similar to Pennsylvania, has legalized not only sports betting but also online casinos and poker sites. However, the task at hand in Michigan is much more challenging.
Elections and pandemics shake up Lansing
The MGCB staff had a challenging year working through the rules process, but the year in Lansing felt even longer.
Whitmer, a Democrat, has been engaged in numerous political conflicts on various fronts, including a thwarted extremist kidnapping scheme. Additionally, President Donald Trump has occasionally directed targeted tweets towards her, and the Republican congressional majority has challenged her pandemic restrictions through a court case, resulting in their repeal.
In addition, conflicts arising from disagreements over masks within the chamber, as well as demonstrations involving assault weapons inside the capital building during sessions, can be included in the mix. Furthermore, numerous issues were set aside due to the Nov. 3 elections.
Politicians are navigating through this environment.
With the cancellation of Thursday sessions, there are only nine session days left on the 2020 calendar, all scheduled after the Thanksgiving holiday. While it is possible to add more days, time is running out.
Urgent and motivated forces are required to salvage a 2020 launch. Their presence becomes possible as previous political barriers are eliminated and lame-duck figures eager for a victory step forward.
3. What happens next for Michigan online gambling?
Given the information provided, it is reasonable to expect an optimistic launch in mid-to-late December. However, if JCAR convenes in December and finalizes the rules, the subsequent actions should proceed smoothly.
In order for this to occur, JCAR chairman Pete Lucido, a Republican senator who was recently elected as Macomb County prosecutor for the upcoming year, would have to exert pressure on JCAR to convene in the following month.
After passing through JCAR, the rules would proceed to Secretary of State Jocelyn Benson’s Office of the Great Seal.
The licensing process becomes the main hurdle, but the MGCB is already making progress in that area. Several online operators are already operating in other states, which Michigan used as a reference for its regulations.
Silver lining? A Hail Mary from Rep. Brandt Iden
Rep. Brandt Iden should not be underestimated if you are seeking optimism.
The Republican representative from West Michigan has been the leading force behind the development of online gambling legislation, despite facing various challenges and setbacks along the journey. As his six-year term comes to an end, Iden, who is term-limited, is now just a few weeks away from concluding his tenure in the House.
Both Republican and Democratic Congressional members have praised his diligent work in pushing forward this widely supported legislation. While still in office, Iden may have the ability to persuade JCAR to initiate the launch of online gambling.
Although he falls one “B” short of being the president-elect, Iden has the opportunity to learn from Joe Biden’s approach and collaborate with politicians from both sides of the aisle. Democratic figures like Senator Curtis Hertel Jr. could play a significant role in influencing the remaining stages.
Both sides appear to agree that it would be a satisfactory conclusion for the legislation, marking one of the few issues on which they find common ground.
