Michigan Regulators ‘Cautiously Optimistic’ For 2020 Launch Of Internet Gambling

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This week, Michigan casino operators will be provided with the second drafts of internet gambling rules. State regulators are expressing a sense of cautious optimism as they anticipate the launch of online gaming in Michigan within this year.

This week, Richard Kalm, the executive director of the Michigan Gaming Control Board (MGCB), announced that the board would be providing revised rules for online sports betting and online casino operations to the state’s 15 casino operators.

During the board’s regular meeting on Monday, Kalm stated:

“We are currently in the process of making revisions to the rules, and we anticipate sharing the updated version with the stakeholders either today or tomorrow, taking into account their valuable input. It’s worth mentioning that this process is progressing as planned.”

Kalm stated that while the board initially anticipated Michigan internet gambling to commence in early 2021, their perspective has now become more positive.

Online betting in Michigan is a more complex process, whereas retail sports betting was launched on March 11. In December, the legislature approved and Governor Gretchen Whitmer signed expanded gambling laws.

Kalm ‘cautiously optimistic’ for 2020 iGaming launch

There are stakeholders and politicians who have openly stated their belief that a launch later this year could be possible.

Last month, Rep. Brandt Iden, who has been actively pushing for the issue for several years, expressed the possibility of a launch even in the late summer.

It is a positive move for Kalm to express such optimism when addressing the four board members.

Kalm expressed cautious optimism regarding the possibility of obtaining these regulations within this year. He acknowledged the need to navigate through the legislative process and overcome various challenges as a state agency. However, he stated that the process is generally progressing on schedule, and they anticipate launching online gaming before the start of the new year.

MGCB staff works remotely to hammer out drafts

The implementation of sports and internet gambling has been prompted by the COVID-19 pandemic, but it has also introduced complexities into the situation.

According to Kalm, the members of the board’s staff have been working on drafts from different locations across the state.

Applications for online gaming suppliers were issued by the board on May 15th and are currently being accepted.

Kalm stated, “We will be returning calls to those individuals. Our entire team is dedicated to efficiently processing these license applications as soon as we are capable.”

According to Kalm, the rules in Michigan were largely based on the existing regulations in Pennsylvania, New Jersey, and Indiana, which facilitated the process for Michigan.

The draft for internet sports betting spanned across 76 pages, while the internet gaming document was condensed into 68 pages.

What’s next for Michigan’s internet gambling process?

The Michigan Gaming Control Board (MGCB) is currently in the initial phase of the rule-making process for Michigan. It is anticipated that this stage will take approximately 60 days to complete. The rules were provided to stakeholders in late April to gather their input and feedback.

Following the receipt of the second round of feedback, the gaming control board will forward the rules to the regulatory affairs department for review.

Afterwards, the administrative rules division and legislative service bureau need to approve the rules. Subsequently, the board must submit a regulatory impact statement to the regulatory affairs department for review.

Following a public hearing, the board forwards the regulations to the Joint Committee on Administrative Rules of the state legislature.

Playinmichigan contacted several casino operators, including the 12 tribal casinos and three commercial casinos, and none of them expressed any concerns regarding the initial draft of rules.

Do Michigan operators need to use official league data?

The online sports betting draft offers an alternative source for Tier 2 sports bets or in-game wagers, bypassing the need for official league data.

According to Legal Sports Report, operators have the flexibility to assess the bet using any authorized data source, unless a league like the NBA intervenes to contest this procedure.

If a US-based sports governing body makes a written request to the board, operators will be required to use official league data for in-game wagers, as stated in the draft.

Operators are granted the freedom to utilize any authorized data source for evaluating the bet. Upon receiving notification of the request, operators are given a 60-day period to transition to official league data.

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