Political Climate In Lansing Will Continue To Impact Casinos

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In these turbulent times, it’s understandable to have the instinct of tuning out state government after witnessing another day of unrest at the Michigan Capitol on Thursday.

Lansing’s once-existent harmony has faded away over time, but the current political divisions have introduced a distinct and heightened level of toxicity.

While armed protestors capturing attention by storming the Capitol this week, Governor Gretchen Whitmer also made headlines by extending the state’s stay-at-home order until May 28.

Opening was specifically prohibited for Detroit’s three casinos and the state’s lone horse racing track in the newest order.

Like many political matters these days, it faced opposition.

Anti-Whitmer rallies staged again in Lansing

On Thursday, for the second instance, individuals protesting Whitmer’s orders gathered in Lansing and, notably, entered the legislative chamber while armed.

In a tweet on Friday morning, President Donald Trump expressed support for the demonstrators, describing them as “very good people” and urging Whitmer to engage in negotiations with them.

The State Republicans, who currently have majorities in both the Senate and House of Representatives, have passed resolutions to initiate a lawsuit against Whitmer in order to contest her executive powers.

Cooperation level currently very low

As unfortunate as it may seem, Michigan residents should prepare themselves for further unrest this year, particularly with Whitmer’s increasing influence as a prominent national political figure.

Brubaker Public Relations’ president, Steve Brubaker, cautioned that gridlock will persist for various matters, such as Michigan sports betting.

“Legislatures possess a strong political inclination,” Brubaker conveyed during the SBC Digital Summit on Thursday. “The Republicans in control of this chamber are unlikely to grant the Democratic governor any substantial new sources of revenue, as they seem to prefer keeping this issue alive for the upcoming November elections.”

Whitmer’s re-election is not scheduled for this November; it will take place in 2022.

However, Trump and numerous state Republicans stand in contrast, leading us to the gaming industry.

Impacts on casino industry across state

In December, both Whitmer and Republicans reached a consensus on the expansion of gambling laws, encompassing the inclusion of sports betting and online gaming.

The introduction of retail sports betting took place in March; however, the launch of iGaming and online sports betting is being delayed until early 2021 due to regulatory procedures.

House Speaker Lee Chatfield of Levering, a prominent Republican, has taken a leading role in advocating for the acceleration of the process. He has actively lobbied the governor to utilize emergency rules.

“At the SBC summit, Joe Asher, CEO of William Hill US, expressed his observation that there seems to be a growing inclination towards opening online platforms earlier than initially expected.”

Up to this point, the governor has refrained from implementing the rules, leaving uncertainty regarding their potential to expedite the process.

Gaming negotiations hard sell in this environment

Although online gaming may appear insignificant in light of the current circumstances, it is worth noting that the revenue generated from it could aid the state amidst the COVID-19 crisis.

Despite the addition of retail sports betting to the gambling menu, April passed by in Michigan without a single bet being placed in a casino. In April 2019, the state only generated $10.1 million in revenue from Detroit’s three casinos, which falls short of what could have been anticipated.

However, state politicians, who seem to be unable to reach a consensus on any matter, are faced with numerous challenges to tackle, with online gambling being just one of them.

The website of the state’s unemployment agency is currently causing problems for over one million individuals who have filed, resulting in delays in claim processing by the bureau.

Brubaker expressed that legislators prioritize COVID as the utmost concern for their constituents. However, they questioned whether any other legislation would be addressed during the remainder of the session once the pandemic is resolved.

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