Michigan Government Shutdown Averted But Gambling Expansion Still Uncertain

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Concerns regarding a potential government shutdown in the Wolverine State have been alleviated. However, despite reaching a budget deal in Michigan, the uncertainty surrounding the timeline for gambling expansion remains.

Last month, Gov. Gretchen Whitmer received a plan from Michigan’s Legislature to fund Lansing for the next year in a last-minute decision. Despite line-vetoing nearly a billion dollars’ worth of items in the budget, Whitmer ultimately signed the bill.

The timeline of gambling expansion remains uncertain, as it greatly depends on one’s perspective. The situation is constantly changing and evolving.

Why the Michigan budget deal was so important

In short, Lansing has solely focused on the fall legislative session, neglecting any other tasks. Without a budget, virtually all work would have halted.

The state lottery would have been included, but the state government managed to avoid a shutdown. However, the weeks dedicated to negotiating the deal required the government’s full attention.

As a result, other issues such as gambling expansion were not given priority, leading to a delay in comparison to the expected timeline had a budget agreement been reached earlier.

Now that the budget is mostly in the past, the legislature can shift its focus towards other matters. It remains uncertain whether gambling expansion will be part of their agenda and, if so, when it will be addressed.

If Rep. Brandt Iden maintains his strong support for gambling expansion, there is a possibility that action may be taken on his proposals in the near future.

What Iden is proposing for Michigan gambling expansion

In addition to Iden’s efforts to legalize sports betting in Michigan, his ambitions extend beyond that. Iden aims to introduce online slots and table games to the Wolverine State as well, although the current bill does not touch upon this matter.

HB4916 has been introduced by Iden to the House Regulatory Reform Committee. However, there is currently no scheduled action on the bill.

There is a high probability that discussions and a vote will be carried out in the committee at some point. In the event that it is approved by the committee, it will then proceed to a vote in the full House.

The approval of Iden’s bill or a similar version by the House may only mark the start of the hurdles as no Michigan Senate members have introduced a corresponding bill as of now.

In the previous term, a bill that aimed to legalize sports betting failed to make its way to the Governor’s desk. Iden believes he has enough support from the legislature this time, but he is cautious about the possibility of his bill being vetoed, just like it was in January by former Governor Rick Snyder.

There are lingering concerns regarding the extent of support Whitmer may have for the bill. In the past, Whitmer had objected to Iden’s bill primarily due to the tax structure it proposed. It appears that Iden and Whitmer still have significant differences in this regard, as the bill suggests an 8% tax rate while Whitmer has expressed her preference for a 15% tax rate.

Negotiations on gambling expansion can now commence, as the budget crisis has been resolved. However, the exact timeline for these discussions remains uncertain.

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