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Playinmichigan has learned that despite increasing pressure, an email from the office of Gov. Gretchen Whitmer on Wednesday indicates that she has no intention of utilizing emergency rules to expedite the iGaming and online sports betting process.
In an email to stakeholders, Jasmine Tompkins, Deputy Director of Legislative Affairs for Whitmer, emphasized that the existing circumstances fail to meet the necessary criteria for emergency rule-making.
As a result of the COVID-19 pandemic, the closure of casinos has caused significant financial losses for the state and other public entities. This email brings attention to this issue.
The inclusion of iGaming and online sports betting in certain states has helped to recover a portion of the revenue lost by the struggling industry.
According to previous statements made by the Michigan Gaming Control Board, mobile sports betting and online casinos are expected to launch in early 2021, unless emergency rules are implemented.
On Thursday, Michigan’s death toll surpassed 4,300, making it one of the states most severely affected by COVID-19.
Email to stakeholders delivers non-update
Tompkins informed stakeholders about the position of the governor’s office.
The email stated, “After carefully reviewing all the statements submitted in support of emergency rules, we regret to inform you that the circumstances do not meet the necessary criteria for emergency rulemaking as outlined in the Administrative Procedures Act of 1969.”
We will move forward with the standard rulemaking procedure using the draft rules you have received, but we will make every effort to expedite the process and complete it as quickly as possible. Throughout this process, we will ensure compliance with all necessary steps and timeframes required for the procedure.
According to The Detroit News, the gaming control board of the state would have to take action on emergency rules in collaboration with Whitmer. Mary Kay Bean, a spokesperson for the board, has stated that these rules are typically reserved for exceptional circumstances where there is a significant risk to public health, safety, and well-being.
Political battles raging in Lansing
The past month has witnessed an unsightly situation in Lansing.
In response to Governor Whitmer’s executive orders aimed at keeping residents at home during the pandemic, two distinct protests have taken place. Notably, one of these demonstrations involved armed civilians inside the State Capitol.
Republican legislators announced a lawsuit on Wednesday against Whitmer, a Democrat, contesting her authority.
Whitmer’s most recent executive order extends the closure of Detroit’s three casinos, along with several other businesses in Michigan, until May 28.
Republicans Speaker of the House Lee Chatfield and Brandt Iden, the primary advocate of the gambling bills that Governor Whitmer approved in December, are now advocating for the implementation of emergency rules to facilitate online gambling in Michigan.
COVID-19 has been costly to casinos, state
Since March 22, all Michigan casinos, including tribal facilities that are not required to follow Whitmer’s orders, have remained closed.
The closure of Detroit’s three casinos resulted in a revenue loss of approximately $10 million for the state in April. In addition, the city of Detroit incurred a loss of several million dollars, while Native American tribes, local governments throughout the state, and casino operators are also experiencing daily financial losses.
This week, Mayor Mike Duggan provided a somber outlook for Detroit’s casinos, suggesting that a complete reopening of Greektown Casino-Hotel, MGM Grand Detroit, and MotorCity Casino may only occur once a COVID-19 vaccine becomes available. He also mentioned that even a partial reopening could still be a month or two in the future.
West Virginia using emergency rules for iGaming
There is a precedent throughout the nation for Whitmer to utilize emergency regulations for online gaming.
On April 29, the West Virginia Lottery Commission granted approval for a set of emergency rules. These rules are intended to expedite the process of implementing iGaming regulations and will be submitted to the Secretary of State.
During the process of finalizing permanent regulations, interim licenses may be issued for a duration of 270 days.
Business as usual means likely launch in early 2021
The state’s gaming control board has recently submitted draft rules to stakeholders and is currently awaiting their responses by the end of this month.
There are a total of 63 pages dedicated to internet gaming rules and 71 pages dedicated to internet sports betting rules in the drafts.
The deputy director of the gaming control board sent a letter to potential sports betting and internet gaming operators, urging them to collect necessary documents for licensing, such as tax returns and financial statements.
Kurt Steinkamp stated that submitting this information to the MGCB at the earliest opportunity would aid in expediting the licensing procedure.
Some states mitigating losses with online gambling
Due to their online gaming offerings, states like Indiana and New Jersey are experiencing comparatively lesser losses from casino closures.
Pennsylvania witnessed an unprecedented surge in online casino activity during March, owing to the closure of all brick and mortar casinos across the state. The total revenue generated by online casinos skyrocketed to an impressive $24.3 million, marking it as the most profitable month ever.
Despite the ongoing pandemic, operators such as FanDuel, DraftKings, and BetMGM continue to provide online sports betting options. They are showcasing sports like Russian table tennis and Korean baseball, which have gained significant attention, along with substantial wagering activity on the recent NFL Draft.
Despite the pandemic, Colorado went ahead and opened its online sports betting presence last week. Four apps were launched, marking a significant step forward in the state’s sports betting industry.
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