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Following the Supreme Court’s overturning of PASPA, Nevada was joined by seven other states in legalizing sports betting. However, the concept of integrity fees has struggled to gain support.
The Michigan online gaming bill is attracting attention once more due to the inclusion of integrity fees, which are being discussed in the legislative process.
Thus far, the major sports leagues have faced significant opposition from regulators in their efforts to advocate for the implementation of integrity fees.
During the sports betting regulation process in New Jersey, State Senate President Steve Sweeney expressed a firm stance on integrity fees. His views were openly shared in an article by the Associated Press.
In essence, the leagues are requesting payment in exchange for ensuring fair games. It is ironic that they are labeling this demand as an ‘integrity fee,’ despite being fully aware that granting participants a share in betting revenue would actually be better described as an ‘anti-integrity fee.’
Michigan’s stance on integrity fees
However, this wasn’t always the case as Michigan appears to be the first state considering incorporating integrity fees into its legislation.
When introducing H 4926, the Lawful Internet Gaming Act on the floor of the House of Representatives, Michigan State Rep. Brandt Iden initially rejected the concept of integrity fees.
Earlier this year, the bill successfully advanced through the House before the legislature commenced their summer break. However, it appears that Iden had a change of heart regarding the matter during the break.
Iden grabbed attention when he altered his stance during his speech at the US Sports Betting Policy Summit. As reported by Reuters, Iden’s position underwent a reversal after he had dedicated considerable time to engaging with the leagues.
Iden mentioned that in other countries, there exists a certain fee, and there is a designated space for it.
In a recent interview with Online Poker Report, Iden discussed the integrity fee reversal and provided an update on the current state of the gaming bill.
Initially, I held the belief that integrity fees had no place in my perspective. However, after engaging in conversations with the leagues, I now find merit in continuing the dialogue on this matter. It is important to note that this does not imply that a fee has been decided upon. Rather, my statement merely indicates that I have not completely dismissed the notion of integrity fees and am willing to explore the topic further.
Integrity fees may or may not be implemented in the end.
Michigan online gaming bill is close
If the bill fails to reach the governor’s desk before the legislature adjourns, we will be starting from scratch with only three weeks remaining in the current legislative session.
The bill is currently in the Senate Committee on Government Operations, under the leadership of Senate Majority Leader Arlan Meekhof, who also serves as the committee’s chair.
Iden emphasized the significance of appearing before his committee, stating that it is a favorable circumstance. He further explained that having the Senate majority leader oversee the handling of these bills is crucial for their progress. The leader’s endorsement is essential to ensure their successful passage.
Assuming, and it’s a significant assumption, that the gaming bill is approved, it does not guarantee the introduction of sports betting anytime soon.
Iden initially expressed his intention to introduce a distinct legislation during the summer to legalize sports betting. However, the midterm elections disrupted this plan as predicted. Consequently, Iden has now rescheduled the introduction of the supplementary legislation for 2019.
It seems that the situation regarding online gaming in Michigan is still uncertain and we will have to wait and see what happens.
- Did the Senate pass the Lawful Internet Gaming Act?
- Did Gov. Rick Snyder sign the bill?
- Will Iden be introducing a sports betting bill in the New Year?
- Does the bill incorporate integrity fees?
We will see what happens as the legislature has until December 20th to send H 4926 to the governor’s desk.
