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If you are a resident of Michigan and have been hoping for new legislation to legalize online casino and sports betting, it seems like your wish might come true. Just in time for Christmas 2019, a couple of gambling expansion bills in Michigan are expected to be enacted into law.
State Senator Curtis Hertel Jr. affirms that both bills, which have been in committee since they were sent over by the House, have received approval from all parties concerned. This includes industry stakeholders and Governor Gretchen Whitmer.
Compromises reached in Michigan gambling expansion bills
Michigan state Rep. Brandt Iden would consider it a significant victory to have the bills approved before Christmas. Originally, Iden aimed to have the bills passed in time for the holidays.
Iden’s victory wasn’t achieved through stubbornness alone. Like many aspects of government, the ultimate framework is a result of compromise.
Throughout the entire process, Whitmer consistently argued that the tax rates proposed by Iden were insufficient. However, if Iden were to increase the rates significantly to appease Whitmer, he ran the risk of alienating other stakeholders, such as the state’s casinos.
In order to accommodate both groups, commercial casinos will be subject to a tax rate of 12% on sports betting revenues, while tribal casinos will face a rate of 8.75%. The tax structure for iGaming revenue, however, follows a graduated system.
The highest rate in that framework reaches 26.25% at its highest point. Although it exceeds the operators’ desired payment amount and falls short of Whitmer’s expectations, it serves as an acceptable middle ground for both parties.
Late-year momentum propelling Michigan gambling expansion
Over the past few years, the legislation regarding the expansion of gambling in Michigan has seen its fair share of both positive and negative developments. As we entered the final month of 2019, the hopes for the passing of sports betting and iGaming bills were starting to dwindle once more.
However, there has been a recent increase in momentum for Michigan. A promising development came when numerous tribal casinos in the state expressed their support for a sports betting bill during a House Ways and Means Committee meeting on October 29th.
In the end, Hertel’s role as a leader in the Senate played a crucial role in the last crucial effort. Both Hertel and Whitmer belong to the Democratic party, and interestingly, the governor had previously worked for Hertel’s father.
Hertel expressed optimism about the negotiations, stating, “The progress is promising. I am confident that the bills will reach the governor’s desk and be signed well before Christmas.”
However, there are a few items that need to be checked off the list before that happens. In the event that Hertel’s statement is accurate, the timeline may be expedited.
So what happens in the Wolverine State now?
Once the Senate committee votes on the bills, they move forward to the full Senate floor. However, since the bills differ from those that were approved by the House, the House will need to undergo its process again.
If the bills successfully pass through the bars, they will reach Whitmer’s desk, and upon her signature before the current legislative term concludes, they will be enacted as laws.
The responsibility of regulating both activities will then fall upon the Michigan Gaming Control Board. This entails tasks such as drafting and processing license applications, as well as certifying operators’ adherence to the law.
The duration of the process is uncertain. Even if the iGaming and sports betting bills are passed before Christmas, it might be overly optimistic to expect both or either product(s) to be launched before Super Bowl Sunday.
Realistic timeline for legal sports betting and iGaming in Michigan
Legalization of sports betting in other states has typically taken around three months for the actual implementation. Therefore, it is possible that March Madness 2020 could serve as a more feasible launch date for legal sports betting in Michigan.
The launch of iGaming might be delayed as it is not as dependent on the calendar. Considering the upcoming major sporting events, the commission might give priority to sports betting.
Legal iGaming and sports betting are bound to become a reality for Michiganders, making gambling options in the Wolverine State comparable to any other.
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