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The signing of legislation by Gov. Gretchen Whitmer in Michigan opens up new possibilities for online poker, with the potential for growth and improvement through multistate online poker compacts.
The proposed legislation allows the Michigan Gaming Control Board to potentially collaborate with other states and jurisdictions in order to share online poker liquidity. Presently, New Jersey, Nevada, and Delaware have successfully established a partnership where players can join a shared pool.
The bill was signed by Whitmer on December 29th.
It is anticipated that the initial launch of Michigan’s online casinos will take place later this month, but it remains uncertain whether online poker will be included in the initial rollout. However, it is expected that MGM poker and PokerStars will soon follow with the launch of online poker in Michigan.
Multistate online poker law corrects oversight
The original language of S 991 was initially included in the Lawful Internet Gaming Act, which was passed by Michigan lawmakers in 2019 with the aim of legalizing online gaming.
Nevertheless, due to the Michigan Lottery’s request, the bill was ultimately withdrawn just before its implementation. Sen. Curtis Hertel Jr. expressed this sentiment when he initially introduced the bill in June.
“We were concerned about the absence of multi-state slot machines to rival the lottery. Poker was unintentionally excluded from our considerations. However, due to the fast pace of our progress, it was one of the things we overlooked.”
Hertel expressed his satisfaction in rectifying the error after the bill sailed through the House effortlessly in December.
Bill overcame one obstacle to reach finish line
Despite receiving strong support with an 85-16 vote in the House and a 36-1 vote in the Senate, the bill faced potential obstacles in a Senate committee that almost derailed its progress.
In October, Sen. Dan Lauwers made an effort to link the legislation with a contentious historical horse racing (HHR) bill. Unfortunately, the HHR bill was opposed by Michigan casinos and gaming tribes, leading to its eventual defeat.
Lauwers believed that by linking the HHR bill with a favorable provision for casinos, he could ensure that neither bill could be enacted into law without the other.
However, the casinos did not have a significant stake in the small-scale cleanup of the online gaming bill. Hertel hurried to the hearing of the Regulatory Reform Committee and successfully halted the attempt, which would probably have caused the legislation to fail.
Multistate online poker in Michigan won’t happen overnight
Allowing companies to pool players between their sites in multiple states is advantageous for customers. It results in more players being available for cash games even during non-peak hours. However, the true impact is seen in tournaments as they attract a greater number of participants, leading to larger prize pools.
However, once online poker becomes available in Michigan, customers will need to be patient as they won’t be able to play with players from outside Michigan right away. The law and an interstate online poker agreement are two separate matters.
After a waiting period of 90 days, the bill will be subject to the discretion of the MGCB to determine whether it wishes to participate in the current Multi-State Internet Gaming Agreement alongside New Jersey, Nevada, and Delaware. Additionally, Pennsylvania and West Virginia have legalized online poker as well.
The MGCB may consider delaying its decision until a federal ruling is reached regarding the Wire Act, as it significantly affects interstate gaming.
