Michigan Lawmakers Draft New Online Gaming Bill

New draft bill puts Michigan back in i-gaming race

As Michigan lawmakers claimed their dedication to passing an online gaming bill in 2017, there was no doubt that they were serious. But complications in discussions with all parties involved, especially bridging the gap between commercial and tribal casino issues, was a huge obstacle. Other states (looking at you, California) have never been able to find common ground, and that created doubt for Michigan.

No word from bill sponsors in Michigan throughout the first few months of 2018 prompted more concern.

However, just as March comes to an end, word of progress came through a US online gaming expert that one of last year’s bills has been given new life.

A Look Back at 2017

Michigan State Senator Mike Kowall was the person who began the push for online poker and casino gams in the state. And his SB.203 made progress in 2017, passing the Senate Regulatory Reform Committee and inspiring State Representative Brandt Iden to work his own bill from the House side.

Kowall face some pushback, though, from the state’s Native American tribes who expressed serious concerns about their participation in the new endeavor. Those concerns were significant enough to derail SB.203 for the remainder of the year, though the interested parties did maintain contact and continued talks to better the bill.

Iden came up with HB.4926, which did well in an informational hearing in the House Regulatory Reform Committee but required more work to garner the support of the committee members.

But in a rather surprising late move, Iden brought an amended version of HB.4926 to that committee in December, and it passed by a 12-3 vote.

Radio Silence Ends

For the first few months of 2018, there was no word on either bill, though both remained alive.

Then came the tweets from Chris Krafcik, Gambling Compliance Research Director and insider seemingly with an ear to the ground in all states with gaming activity.

1/ A new #MI #iGaming bill draft, which was developed with input from the Senate Majority Leader's office, is floating around Lansing. Cliffs: No iSports Betting provisions; 15% GGR tax; MI gaming tribes must form commercial iGaming entities. Story ($): https://t.co/fT1wN4DJSr.

— Chris Krafcik (@CKrafcik) March 28, 2018

2/ Senate Majority Leader's office (SML) being involved is significant (SML sets the Senate legislative agenda). SML spokeswoman told us SML "has been meeting with stakeholders" regarding the new draft of SB 203 "but has no specific plans for action on the bill."

— Chris Krafcik (@CKrafcik) March 28, 2018

3/ Lansing sources said new draft of Senate #iGaming bill—SB 203—could form part of a broader, SML-backed legislative package that includes advance deposit wagering and #fantasysports measures. Sources said iSports Betting provisions likely to be added to SB 203 later.

— Chris Krafcik (@CKrafcik) March 28, 2018

4/ ?s, as ever, hang over #MI #iGaming legislation. Thorniest: Would such legislation need to be approved by a public vote? $LVS-backed Coalition To Stop Internet Gambling has argued Yes. Local legal experts not affiliated w/ coalition have said coalition's arguments are sound.

— Chris Krafcik (@CKrafcik) March 28, 2018

5/ We note that the new draft of #MI #iGaming bill SB 203 would require approval by referendum. The draft, however, does not expressly state whether SB 203 would need to appear on the statewide ballot, only, or on both the statewide ballot *and* city/township ballots.

— Chris Krafcik (@CKrafcik) March 28, 2018

Essentially, a new version of SB.203 is now in draft form for the legalization and regulation of online poker and casino games, though it could be broadened before it is reintroduced to include daily fantasy sports and sports betting. State Senate Majority Leader Arlan Meekhof provided input for the draft and will support the bill.

In response to tribal concerns, tribes with gaming interests will be required to form commercial online gaming entities to participate and claim licenses. And to ensure that online gaming reflects the will of the people, the bill will require that voters approve a referendum to allow online gaming.

Back in the Saddle Again

For those who put Michigan atop the list of states most likely to legalize online gaming in 2018, bets are still in safe territory.

The movement behind the scenes for online gaming has been significant. With a new version of SB.203 likely to be introduced in the coming weeks, it stands to reason that there may also be a revised version of HB.4926 to follow.

Should the legislature pass such a bill in a timely manner, the measure could possibly make it onto the November 2018 ballot for voter approval.

What’s more is that the US Supreme Court is due to rule on sports betting within the coming weeks as well. Should the decision favor New Jersey, this may inspire an expanded version of the bill that includes sports betting, and the momentum from the court case across America could push the bill at an accelerated pace.

There are numerous dominoes still being put into place with details to come. But the moves thus far from Michigan indicate the state’s lawmakers are quite serious about making online poker and casino games a reality for their residents sooner rather than later.