3 Crucial Questions For Michigan’s Stalled Online Gambling Launch

Could you please rephrase this sentence?

For quite some time now, we have anticipated that Playinmichigan would most likely commence its online gambling operations in late November.

Nevertheless, with the Michigan Gaming Control Board meeting on Tuesday failing to yield any positive signs and the cancellation of Thursday’s congressional meetings, it is becoming evident that December is a more realistic timeframe for the launch of online sports betting, casinos, and poker.

However, this could also be viewed as overly optimistic. It is also possible that the opening could be delayed until early 2021.

As it stands now, the cards are not favoring online gambling, but there are still reasons to remain optimistic for 2020.

1. What is the status of Michigan’s online gambling rules?

The online gambling launch is currently facing dual challenges: obtaining licenses and gaining approval from the state legislature. The licensing process is in progress, but gambling operators are unable to obtain licenses until the legislature approves the rules.

Now, we arrive in Lansing, where the internet sports betting and internet gaming rules are currently under consideration by the Joint Committee of Administrative Rules. JCAR has a limited timeframe of 15 session days to either approve the rules or return them to the MGCB.

On October 8th, the rules were sent to JCAR, and the gaming board asked the committee to overlook the session day requirement.

On the other hand, JCAR holds the authority to suggest modifications for the MGCB, voice objections to the regulations, or return the law to both chambers.

JCAR, comprising 10 members from the state’s Senate and House of Representatives, has the ability to convene either during legislative sessions or in the interim.

Public objections to the rules have not been raised, however, it is worth noting that none of the 10 JCAR members played a significant role in drafting the legislation. This could potentially be attributed to a difference in priorities as the deadline for the new year approaches, which may necessitate a reevaluation of the JCAR process.

On Tuesday, Kalm expressed his optimism that there would still be bets on February’s Super Bowl, implying that the possibility of no bets is unlikely.

Kalm informed the MGCB, “I believe we’re starting to make progress.”

Several legislators who were instrumental in the passage of this bill are eagerly anticipating its implementation. They are actively engaged in discussions surrounding it. As negotiations and compromises continue within the legislature, we remain optimistic that a waiver will be granted, allowing us to initiate the process.

2. How did Michigan get to this point?

Governor Gretchen Whitmer signed the expanded gambling bills into law in December 2019, meaning that almost a year has passed since their enactment.

Originally, the goal was to have retail sports betting operational by early 2020 and to introduce online sports betting, casinos, and poker in Michigan by early 2021.

However, the closure of Detroit’s casinos due to the pandemic shortly after the launch of retail sports betting highlighted the urgency of implementing online gambling sooner rather than later. After remaining shut for five months, it became evident that online gambling was necessary.

The public coffers are in desperate need of a revenue influx, and Michigan has found a potential new source that could generate hundreds of millions. This alone has raised hope for a possible launch in November 2020.

The MGCB staff began their work, understanding that drafting new rules and effectively going through the process requires a considerable amount of time.

Pennsylvania, a state where the legislation to legalize online gambling was enacted in October 2017, saw the launch of online casinos in July 2019, nearly two years later. While some states have managed to expedite the process, this swift implementation is not typically observed.

In addition, it is worth noting that Michigan, similar to Pennsylvania, has legalized online casinos and poker sites in addition to sports betting. However, the challenge ahead is considerably greater.

Elections and pandemics shake up Lansing

Working through the rules process proved to be a lengthy year for the MGCB staff, but it paled in comparison to the even longer year experienced in Lansing.

Whitmer, a Democratic politician, has encountered numerous political challenges from various angles, including a thwarted kidnapping scheme orchestrated by extremists. Additionally, she has faced intermittent Twitter attacks from President Donald Trump and a legal opposition from the Republican-controlled Congress, which rescinded several of her pandemic-related regulations.

Additionally, the chamber saw disputes arising over mask-wearing, as well as demonstrations involving assault weapons taking place inside the capital building during sessions. Furthermore, numerous issues were overlooked or postponed due to the focus on the Nov. 3 elections.

Politicians are navigating through this environment.

Following the cancellation of Thursday sessions, there are only nine session days left on the 2020 calendar, all scheduled after the Thanksgiving holiday. Although there is a possibility of adding more, time is running out.

Urgent and motivated forces are required to salvage a 2020 launch. This could be made possible by eliminating previous political barriers and leveraging the eagerness of lame-duck figures to secure a victory.

3. What happens next for Michigan online gambling?

Given the information provided, it would be more realistic to expect an optimistic launch in mid-to-late December. However, if JCAR convenes and establishes the rules during that month, the subsequent steps should progress quite smoothly.

In order for this to occur, JCAR chairman Pete Lucido, a Republican senator who was recently elected as Macomb County prosecutor for next year, must urge JCAR to convene in the upcoming month.

After going through JCAR, the rules will proceed to the Office of the Great Seal, which is headed by Secretary of State Jocelyn Benson.

Licensing becomes the main obstacle, although the MGCB is already making progress in the background. Several online operators are already active in other states, which Michigan has used as a reference for its regulatory guidelines.

Silver lining? A Hail Mary from Rep. Brandt Iden

Rep. Brandt Iden shouldn’t be overlooked if you’re seeking optimism.

The legislator representing West Michigan, affiliated with the Republican party, took the lead in crafting online gambling legislation, navigating through various obstacles and setbacks along the journey. As Iden nears the end of his tenure in the House after six years, he is bound by term limits and only a few weeks remain in his political career.

Congressional members from both political parties have praised his endeavors to successfully pass this widely supported legislation. It is possible that Iden, during his tenure, could exert his influence on JCAR to facilitate the implementation of online gambling.

Although he falls one “B” short of being the president-elect, Iden can still learn from Joe Biden’s approach and collaborate with politicians from both sides of the aisle. The guidance of Democrats like Sen. Curtis Hertel Jr. could be invaluable in determining the remaining actions.

Both sides seem to agree that it would be a clean finish for the legislation, making it one of the few issues of consensus.

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