Last week, online gaming made a comeback in the Michigan Legislature.
On Tuesday, the Michigan House Regulatory Reform Committee conducted a hearing on the revised edition of Rep. Brandt Iden’s online gaming bill, known as H 4926. This hearing occurred on the second-to-last day of the current legislative calendar.
The initial hype of online gaming quickly faded away as the revised bill was voted out of the committee with a vote of 12-3-1. Nevertheless, thanks to Michigan’s rules that permit bills to be carried over to the following year of the legislative session, this vote could potentially pave the way for a more determined effort towards online gaming in 2018.
A look inside the new bill
The bill may be affected by several new changes.
- Casinos are now mandated to house online gambling servers.
- The bill implements a fresh tax distribution plan, with the notable feature of reducing the rate from 15 percent to 10 percent.
- The legislation aims to clear the path for the introduction of online sports betting in the Wolverine State.
Efforts to address server location and taxation issues have been made in order to overcome the obstacles that have hindered the progress of online gaming legislation for nearly two years (further details will be discussed in the following section).
Regarding sports betting, the current version of the bill states:
Under this act, the division has the authority to grant permission to an internet gaming licensee to engage in internet wagering on both amateur and professional sporting events or contests, as long as federal law does not prohibit such internet wagering.
Michigan is considering legalizing online sports betting, joining Pennsylvania as one of the states exploring this option. It’s worth noting that Nevada already provides legal online sports betting.
Did the changes solve the bill’s problems?
According to Playinmichigan’s documentation, the legislation regarding online gaming in Michigan needs to overcome several significant obstacles.
- There are concerns regarding the constitutionality of expanding gambling without the requirement of an amendment and voter referendum.
- The tribal and commercial casinos in the state lack support.
The objective of the server location amendment is to address the constitutional concern. The recently proposed legislation mandates that casinos must accommodate online gaming servers. This strengthens the state’s position that online gaming should not be considered as an expansion of gambling, but rather as a distinct form of gambling provided by established operators. Whether this additional obligation will satisfy critics remains uncertain.
The taxation scheme modifications gained the legislation support from the three commercial casinos in Detroit’s Michigan area. However, the tribal casinos are in opposition to the current form of the measure.
According to Iden, there is a possibility that the bill could pass even without tribal support. However, he also acknowledged that it is more probable for at least some tribes to be involved in order for the bill to succeed.
Iden expressed that while it’s not their intention, they believe it is possible to find common ground. However, they acknowledged that what may be acceptable to some tribes may not be acceptable to all. They are committed to working towards consensus by finding common-ground language with as many tribes as possible, understanding that there will still be opposition from others. Iden emphasized that it is unrealistic to expect unanimous support from all stakeholders.
See you in 2018
Michigan’s recent hearing and vote solidify its position as a formidable competitor in the online gaming industry. However, unresolved issues remain as obstacles preventing the development of a bill that can successfully navigate through the House and Senate.
