Jump to main menu
Online poker players in Michigan could soon have a legal alternative available to them.
The Lawful Internet Gaming Act, also known as H 4926, has been approved by Michigan Legislators and currently awaits the governor’s final approval. This act aims to legalize online casino gaming and poker.
As the 2018 legislative session drew to a close, the initial optimism surrounding H 4926’s chances of receiving a vote in the Michigan Senate gradually faded.
Amidst a whirlwind of activity that extended well into the evening, the bill made significant progress as it reached the floor, accompanied by an attached amendment. With an overwhelming majority, the entire Senate voted 33-5 in favor of returning the bill to the House for concurrence.
Following the conclusion of the daily session and reconvening a few minutes later, the House ultimately reached an agreement with the amendment.
The bill is currently awaiting Gov. Rick Snyder’s signature. While it appears probable that Snyder will approve the bill, its certainty remains uncertain until the ink has dried.
According to Sen. Mike Kowall, the sponsor of the Senate’s bill, he expressed confidence in Governor Snyder’s intention to sign the bill.
After personally conversing with him, his chief of staff, and even the office janitor, all sources indicate a high likelihood of him signing it. Considering Pennsylvania’s recent stance, I am hopeful and optimistic that he will indeed approve the bill.
The finer points of Michigan’s online gaming bill
Additional regulations must be implemented for online sports betting to be included in the Lawful Internet Gaming Act.
After the bill is enacted, individuals residing in Michigan who are at least 21 years old will have the opportunity to engage in casino gambling through their web browser or smartphone. Eventually, eligible players will be required to complete registration with either one of the 23 tribal casinos in the state or any of the three commercial casinos in Detroit.
- MGM Grand Detroit
- MotorCity Casino Hotel
- Greektown Casino Hotel
Here are some key points outlined in the Lawful Internet Gaming Act:
- Tribes will now be allowed to obtain commercial casino licenses through the recently established Division of Internet Gaming.
- There will be an 8 percent tax imposed on online gaming.
- An extra 1.25 percent will be added to the local share of Detroit’s commercial casinos.
- The initial license fee will amount to $200,000, and thereafter an annual renewal fee of $100,000 will apply.
However, Michigan’s online gaming industry is still a considerable distance away. The launch of the first online casino is not expected for another 15 months, meaning it will likely be around mid-2020 before Michigan’s first online casino becomes available on the internet.
The long road to the governor’s desk
Getting this online gaming legislation to the governor’s desk has been an exhilarating journey, resembling a roller coaster ride. The primary obstacle was achieving consensus between the commercial casinos and the tribes.
The “poison pill,” as referred to by Rep. Brandt Iden, the sponsor of H 4926, pertains to the main concern outlined in Sec. 16. This provision allows commercial casinos to persist with their online gambling activities even if federal law restricts tribes from doing the same. This circumstance would grant a significant advantage to the commercial casinos, and the tribes strongly opposed being involved in such a situation.
Despite lacking the tribe’s support, Iden accomplished the task of getting the bill approved in the House. Nevertheless, he made a reassuring promise to the tribes that the issue would be addressed by the Senate.
The amended version of the bill was achieved by Kowall’s success in persuading the commercial casinos to remove Sec. 16 from it.
Kowall stated that it was a historic moment for Michigan as the tribes and commercial casinos had joined forces and reached an agreement for the first time.
The only thing preventing Michigan from having online casino gaming is the governor.
On January 1, 2019, Governor Snyder will conclude his term, making way for Governor-elect Gretchen Whitmer to assume office as Michigan’s 49th governor. Until then, Snyder has the opportunity to solidify his legacy by implementing a crucial legislation that will effectively boost revenue for the state of Michigan.
