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Last week, the Michigan Gaming Control Board sent draft rules for internet gambling to stakeholders in a bid to expedite the state’s progress.
The draft rules mark another milestone in the progression of online sports betting and iGaming, scheduled for a debut in early 2021 in Michigan.
Nevertheless, there are stakeholders advocating for Gov. Gretchen Whitmer to implement emergency regulations in order to hasten the procedure amidst the COVID-19 crisis. These regulations would result in the closure of Michigan casinos for the entirety of April and potentially certain portions of May.
Casinos, lawmakers lobbying Whitmer
According to VIXIO GamingCompliance, an executive who plays a crucial role in making decisions for the biggest casino in Detroit is among the individuals who are urging state officials to expedite the process, similar to what some states have done immediately after enacting new laws.
According to Roar Digital CEO Adam Greenblatt, we enjoy a strong rapport with the regulator and are actively collaborating to expedite the regulatory process through the emergency rule-making route.
Roar Digital, a collaboration between GVC Holdings and MGM Resorts International, manages a Detroit casino that introduced retail sportsbooks last month. Unfortunately, the onset of the pandemic led to the suspension of most sporting events worldwide.
According to VIXIO GamingCompliance, House Speaker Lee Chatfield (R-Levering) is one of the politicians urging Governor Whitmer, a Democrat, to implement emergency regulations for online gaming.
The potential influence of implementing emergency rules on expediting the early 2021 timeline remains unclear.
Without ‘emergency’ rules, 2021 launch on track
Over the next couple of weeks, Michigan’s three commercial casinos and 12 federally recognized Native American tribes will review the draft rules and provide feedback.
Afterwards, the gaming control board will proceed with a process that is still several months away from reaching completion.
During a radio interview with WWJ in February, the executive director of the Michigan Gaming Control Board outlined plans to distribute the rules for review in the spring.
Richard Kalm stated that they would proceed with the modifications, emphasizing that it is a complex and intricate process.
According to Kalm, the board suggested that Michigan’s tribes collaborate with entities already licensed in other states to ensure a smoother process.
According to him, the board was incorporating successful strategies from other states that have already introduced online gambling.
Kalm stated that they are closely examining the rules, regulations, and conduct of the mentioned states – Pennsylvania, New Jersey, and Indiana – which were frequently referenced throughout the process.
Gaming board: Gather your information
There are 63 pages of rules for internet gaming and 71 pages of rules for internet sports betting contained in the drafts.
The deputy director of the gaming control board sent a letter to potential sports betting and internet gaming operators, urging them to collect necessary documents for licensing purposes. These documents include tax returns and other financial statements.
Kurt Steinkamp wrote that submitting this information to the MGCB as soon as possible would aid in expediting the licensing process.
According to the letter, the board’s website will have applications for supplier licenses available by May 15. These licenses are open for platform providers, geolocation providers, sports betting data providers, software providers, hosts of live gaming data, and marketing service providers.
Michigan playing catch up with online gambling
During the pandemic, states that have embraced online gambling and sports betting have managed to preserve some revenue.
However, by signing expanded gaming bills in December, Whitmer initiated the process of opening retail sportsbooks in order to take advantage of the NCAA Tournament, aiming to have them up and running by March.
Naturally, the arrival of spring would make the Michigan sports betting endeavors largely insignificant.
Michigan’s retail sports betting was launched on March 11, but unfortunately, the Detroit casinos had to shut down just five days later on March 16. Following suit, all 23 tribal casinos across the state were also closed by March 22.
In the six days that sports betting was available, and with most of the sports industry being inactive in the preceding days, casinos managed to generate $105,548 in adjusted gross receipts from sports betting during the month of March.
A total of $3,990 was collected by the state, while the city of Detroit earned $4,876.
Due to Governor Whitmer’s recent stay-at-home executive order, extending until May 15th, Detroit’s commercial casinos will not generate any revenue in April.
