Michigan moves forward on online gaming

Efforts to legalise online gambling, poker and betting in Michigan received a boost yesterday when its House of Representatives passed the Lawful Internet Gaming act, by 68 votes to 40.

The so-called HB4926 grants Detroit’s three casinos permission to offer online gaming and could allow them to offer this as soon as next year. The total cost of an application for a five-year licence is estimated to be $800,000 but licensees are not permitted to offer online gaming until one year after the act becomes law.

A separate division of the Michigan gaming control board would be created specifically to deal with internet gaming, with the division receiving all powers related to oversight, licencing and enforcement action. Participation in all forms of online gambling is limited to individuals aged 21 or above.

Under the bill, online gaming operators would be required to pay an 8% tax on their revenue, and all gaming equipment must be located within the casino.

Also included in the bill are provisions which allow the division to “enter into agreements for multijurisdictional internet” presumably paving the way for pooled liquidity on jackpot slots and poker.

The bill also opens the door for sports betting, stating : “The Division could permit an internet gaming licensee to conduct internet wagering on amateur or professional sporting events or contests if the wagering were not prohibited by federal law.”

In addition, Michigan’s 23 tribal casinos would also be permitted to offer online gambling, upon amendment or creation of separate tribal gaming compacts allowing them to do so.

The bill will be debated by the Senate when it returns in ten weeks’ time and faces a tough road ahead in the main house.

However Representative Brandt Iden, who sponsored the bill remained optimistic about its chances, telling the Detroit Free Press that: “When we come back in the fall, this is going to be at the top of the agenda. Michigan should be at the forefront of that.”