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Michigan online gambling is continuously striving for faster implementation, with the goalposts constantly shifting in that direction.
Senator Adam Hollier introduced a bipartisan bill in the Michigan Senate on Tuesday, with the aim of implementing a swift response to the COVID-19 pandemic.
Hollier, a Democrat hailing from Detroit, sponsors Senate Bill 969, which aims to expedite the launch of iGaming by allowing operators to commence operations prior to completing the exhaustive licensing procedure.
MiBiz.com was told by Hollier that the main focus is on generating revenue. Hollier emphasized that casino gaming is a crucial income stream for numerous governments throughout the state, and is utilized to fulfill essential requirements.
The bill, which aims to amend the Lawful Internet Gaming Act passed in December, does not expedite the launch of online sports betting in Michigan.
The extent to which this bill can expedite the launch remains uncertain, as it is contingent upon the development of the necessary rules before it can take effect.
The act incorporates online poker and would be part of an accelerated rollout.
Momentum pushing up online gambling launch
The retail sports betting industry in Michigan launched on March 11, just days before the onset of the COVID-19 pandemic, which subsequently resulted in its temporary closure.
The Michigan Gaming Control Board originally predicted that online gambling would be launched in early 2021.
Last week, Executive Director Richard Kalm expressed cautious optimism about the anticipated launch of online gambling by the end of this year.
In December, Gov. Gretchen Whitmer approved expanded gambling laws that had previously been vetoed by former Gov. Rick Snyder in 2018.
Whitmer has stated her refusal to implement emergency rules in order to expedite the initiation of internet gambling.
Bill: Online casinos can launch ‘without a license’
The proposed legislation seeks to grant permission for casinos to engage in online gaming activities without a license until the COVID-19 pandemic’s social distancing guidelines are no longer applicable.
The conditional license will only be granted to entities approved for internet gaming platforms in other states. These temporary licenses will remain valid until social distancing measures, associated with the pandemic, are deemed unnecessary.
The bill has additional sponsors, who include:
- Marshall Bullock, hailing from Detroit.
- Paul Wojno, also known as Warren.
- Livonia’s very own Dayna Polehanki
- Curtis Hertel Jr., hailing from East Lansing,
- Taylor, also known as Erika Geiss.
- Stephanie Chang residing in Detroit.
- Jim Ananich, a representative from Flint.
- Charlotte is where Tom Barrett is located.
- Traverse City is the hometown of Wayne Schmidt.
The bill is being co-sponsored by Barrett and Schmidt, who are both Republicans.
Hertel expressed that the implementation is progressing quite rapidly, but any assistance would be appreciated. According to Hertel, amidst challenging financial circumstances, generating additional income for cities and schools holds immense significance. By doing so, even if the Lions don’t secure a victory, our children and communities will still benefit.
The bill will be discussed by the Senate Committee on Regulatory Reform.
Casino closures have cost governments $100 million
According to Playinmichigan, the closure of casinos in Michigan has resulted in a significant deficit of approximately $100 million in the budgets of the state, the city of Detroit, and various local governments.
In the month of May, the revenue generated by Detroit’s casinos experienced a significant decline of 51.6%. This resulted in a loss of $37.9 million in tax revenue for the city of Detroit, as well as a $25.8 million loss for the state.
Furthermore, the closure of the 23 casinos operated by the state’s 12 federally recognized Native American tribes has halted these crucial economic drivers.
Online operators paired up with Michigan casinos
In order to operate in Michigan, online casinos and poker platforms must establish partnerships with either a tribe or a Detroit casino. The Stars Group, which operates PokerStars Casino, is one of the internet companies that has already formed a partnership with a tribe.
Several major online gambling brands have already revealed their partnerships. These brands include:
- Barstool
- BetMGM
- DraftKings
- FanDuel
- Parx
- PointsBet
- William Hill is a well-known company.
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