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The Lawful Internet Gaming Act was approved by the Michigan House of Representatives this week. Although the bill includes provisions related to sports betting, it lacks sufficient specificity in its language.
Rep. Brandt Iden, the bill’s author, confirmed to Legal Sports Report that he plans to propose a law specifically targeting sports betting. Expected to be introduced in the upcoming fall, the bill will outline tax rates and establish guidelines for online sports betting.
Iden stated that a follow-up is necessary and expressed confidence in garnering support for additional legislation now that the votes on this issue have been obtained.
The latest on Michigan sports betting
While Iden currently holds the majority of votes, the Indian tribes persist in their opposition to the legislation, raising concerns about its potential negative impact on Iden’s cause in the upcoming fall.
The Tribes are opposed to the idea of casinos being able to accept online sports wagers while they are unable to offer online gambling in Michigan. The chances of this happening are slim, as it would require a modification in federal law to prevent the Tribes from taking part.
The bill incorporated the language to secure the backing of casinos, who were worried about the potential need to halt their operations and face significant losses in the online gaming industry if there were any amendments to the federal law.
Iden aspires to moderate the language in order to maintain support from the casinos and gain the support of the tribes.
In order to advance and pass the bill in the House, it was necessary for us to persevere with this process. The fact that there is evident support indicates that the tribes are aware that the votes will be secured regardless of their involvement. We are open to addressing the ten percent concern, but their refusal to cooperate cannot persist.
An integrity fee is still a possibility in Michigan
At present, only Nevada, Delaware, and New Jersey have operational sports betting in the United States. Despite efforts, the national sports leagues have been unsuccessful in obtaining an integrity fee in any of these three states.
This week, Rhode Island approved sports betting legislation, opting to not include an integrity fee as well.
The primary objective of major sports leagues is to capitalize on sports betting as a revenue source, leading them to propose an integrity fee. However, this fee seems to focus more on boosting their financial gains rather than upholding the game’s integrity. Essentially, it functions as an additional tax burden on an industry that is already heavily taxed.
The irony lies in the fact that the very entities that have long restricted sports betting to Nevada are now seeking opportunities to profit from an activity they vehemently opposed.
At present, the decision to include an integrity fee lies with the legislative body of each state as they navigate the process of developing sports betting laws.
Iden stated that the upcoming bill he intends to propose during autumn will incorporate provisions to accommodate the sports leagues’ request for an integrity fee.
Iden stated that he would engage in those discussions with league representatives during the upcoming summer.
Don’t hold your breath waiting for Michigan sports betting
The Michigan sports betting bill appeared to gain traction in May, indicating it was close to being passed. However, the momentum dwindled as legislators started raising additional inquiries.
Iden and Sen. Mike Kowall have been collaborating diligently to address the concerns and revive the legislation, working tirelessly.
While successfully advancing the Lawful Internet Gaming Act in the House is undoubtedly a positive start, the journey ahead remains arduous. Anticipate the bill encountering more significant obstacles as it progresses through the Senate.
According to Rep. Robert Kosowski, sponsor of the legislation, there seems to be sufficient motivation for lawmakers to support sports gambling. Even if they are not fans of this activity, the potential revenue generated could serve as an alternative to raising taxes. This statement was made during an interview with the 13 Watchdog Team.
Currently, the situation is a race against time as the Michigan legislature is on summer break until early September. Legislators are preparing to resume work amidst an anticipated contentious mid-term election period. The reception of sports betting among voters remains uncertain.
If any laws fail to pass by the year’s end, they will become void, prompting the 2019 legislature to initiate the entire process once more.
It is highly unlikely that Michigan sports fans will be placing bets on their favorite teams until late 2018, and there is a possibility that it may not happen at all this year. It is quite possible that the first sports bet in the Wolverine State may not occur until 2019.
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