Go straight to the content.
If you reside in Michigan and have been hoping for the legalization of online casino and sports betting, it seems you have been quite good this year. Before Christmas 2019, a duo of bills aiming to expand gambling in Michigan is expected to be passed into law.
State Senator Curtis Hertel Jr. confirms that both bills, which have been awaiting committee review since being transferred from the House, have received unanimous approval from all parties involved. This includes industry stakeholders and Governor Gretchen Whitmer.
Compromises reached in Michigan gambling expansion bills
Michigan state Rep. Brandt Iden would consider it a significant victory to have the bills approved before Christmas. Originally, Iden aimed to have the bills passed in time for the holidays.
Iden did not achieve that “W” by being stubborn. Similar to many aspects of government, the ultimate framework is a result of compromise.
From the beginning, Whitmer consistently argued that the tax rates proposed in Iden’s bills were insufficient. If Iden made significant concessions to satisfy Whitmer, he faced the possibility of losing support from other stakeholders, such as the state’s casinos.
In order to satisfy both factions, commercial casinos will be subject to a tax rate of 12% on sports betting revenues, while tribal casinos will face a tax rate of 8.75%. As for iGaming revenue, the tax structure will be tiered.
The highest rate in that framework reaches 26.25% at its highest point. Although it exceeds the desired payment from the operators and falls short of Whitmer’s expectations, it serves as an agreeable middle ground for both parties.
Late-year momentum propelling Michigan gambling expansion
Over the past few years, the legislation concerning gambling expansion in Michigan has experienced various challenges and successes. As we entered the final month of 2019, hopes for the approval of sports betting and iGaming bills were starting to diminish once more.
Recently, there has been an increase in momentum for Michigan. One encouraging development was the expression of support for a sports betting bill by various tribal casinos in the state during a meeting of the House Ways and Means Committee on October 29.
In the end, Hertel’s role as a leader in the Senate played a crucial role in the final push. Both Hertel and Whitmer are Democrats, and it is noteworthy that the governor had previously worked for Hertel’s father.
Hertel expressed optimism about the negotiations, stating, “The progress is promising. I am confident that the bills will reach the governor and be signed off before Christmas.”
However, before that happens, there are a few items on the list that need to be checked off. If Hertel’s correctness is accurate, then the timeline could potentially be expedited.
So what happens in the Wolverine State now?
Once the Senate committee votes on the bills, they proceed to the full Senate floor. Due to the differences between the bills passed by the House and the Senate, the House will need to go through its process again.
If the bills successfully pass through the bars, they will be presented to Whitmer for approval. Should she sign them prior to the conclusion of the ongoing legislative term, they will be enacted as law.
Once reached, the responsibility of initiating the actual regulation process for both activities will lie with the Michigan Gaming Control Board. This entails the development and handling of license applications, as well as verifying operators’ adherence to the law.
The duration of the process remains uncertain. Even if the iGaming and sports betting bills are approved before Christmas, it may be overly optimistic to expect either or both products to be available before Super Bowl Sunday.
Realistic timeline for legal sports betting and iGaming in Michigan
Legal sports betting in Michigan may not be fully implemented until March Madness 2020, as it typically takes around three months for other states to complete the legalization process and actually launch the service.
The launch of iGaming might be delayed as it is not as dependent on specific dates. Given the approaching major sporting events, the commission might prioritize sports betting over other offerings.
Despite any opposition, the legalization of iGaming and sports betting in Michigan seems increasingly certain. Once established, the gambling choices in the Wolverine State are expected to be on par with those offered in any other location.
