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Michigan online gambling is relieved to see the finish line approaching without any unexpected surprises or new developments.
During the three-hour virtual session for Wednesday’s public hearing on draft rules, only two residents took the opportunity to speak up, marking another box checked off.
An MGCB official shared during the session that the anticipated timeline for the online gambling launch remains approximately Thanksgiving.
Once initiated, online sports betting, online poker, and online casino gaming will become accessible for Michigan residents.
What are next steps for the online gambling process?
Following the conclusion of the public hearing, the process of rule-making will proceed.
The summary states that the Michigan Office for Administrative Hearings and Rules will receive the final draft rules from the Joint Committee of Administrative Rules (JCAR) in their next submission.
The process typically commences with a 40-day step, which is then succeeded by a 25-day adoption process.
Nevertheless, regulators have affirmed that legislatures possess the authority to exempt or expedite specific closing procedures as the conclusion approaches.
The 15-day rule for rules to be presented before the JCAR can be bypassed through a waiver.
A bill is being considered by the legislature to potentially enable Michigan online poker players to engage in competition with players from other states.
On Tuesday, the bill, which is sponsored by Senator Curtis Hertel, advanced from the Senate’s Regulatory Reform committee and is expected to receive a vote from the entire Senate in the near future.
Resident: Bureaucratic delay ‘frustrating’ for residents
Up to 75 individuals were present on the call, and the two residents who voiced their opinions expressed no disagreement with the draft rules being discussed.
Andrew Bernal, a resident of Clinton Township, expressed frustration over the delayed launch of sports betting, partly attributing the situation to Gov. Gretchen Whitmer.
Bernal proposed that the governor implement emergency regulations to hasten the launch. However, Whitmer has been hesitant, and the effectiveness of this approach in expediting the process remains uncertain.
Bernal mentioned that he had recently visited Indiana and had the opportunity to place sports bets there, as he is currently unable to do so within the borders of Michigan.
Bernal expressed confusion and frustration over the lack of efficiency and urgency in streamlining the process. Given the current pandemic situation, they fail to comprehend why this matter is not given higher priority or expedited.
This situation exemplifies people’s frustration with government bureaucracy. It serves as a prime example of it. The bill has been pending for nine months, and we are yet to have internet sports betting.
As a Michigan resident, it’s incredibly frustrating to me. I’m certain that many others feel the same way, making it a bipartisan issue.
Murley: Late November launch is still the hope
David Murley, the host of the meeting and Deputy Director of MGCB, extended an invitation to Bernal for a future conversation to discuss and resolve his concerns.
Resident Marko Tomich inquired about the initial online poker platforms that will be accessible and their expected release date.
According to Murley, online gambling is expected to be launched in late November, with the final version of the rules being submitted to the legislature next month.
The availability of platforms will depend on the licensing and priorities of operators.
Murley stated that the outcome will largely rely on the desires of operators and platform providers, as well as the speed at which the licensing application materials are submitted, evaluated, and sanctioned.
The regulations for internet gaming consist of a comprehensive 71-page document, while the guidelines for sports betting extend to a detailed 79-page manuscript.
The MGCB staff compiled the rules by incorporating elements from other states, such as Indiana, New Jersey, and Pennsylvania.
Robust MI online gambling marketed expected
The online gambling market in Michigan, once mature, has the potential to compete with any live gambling market across the country.
According to the latest official projections, Michigan is anticipated to receive a tax revenue of $25 million.
However, Rep. Brandt Iden, the individual responsible for the legislation, expressed to Playinmichigan recently that he envisions the state having the potential to generate hundreds of millions of dollars in the future.
Sports betting operators in Michigan are subject to an 8.4% tax rate, while online casinos are taxed using a tiered structure that commences at 20%.
There exist a total of 15 casino operators, each having the opportunity to collaborate with a sports betting brand, along with a sole online casino and poker brand.
Michigan operators have formed partnerships with numerous major brands in the industry, and now they are preparing for a fierce battle to gain a larger market share.
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