New Online Gambling Legalisation in Michigan

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Reports now state that a new online gambling legalization bill will be launched in Michigan. The United States state Michigan already authorizes some forms of online lottery, although these are limited activities, it could see some long-awaited expansion in online gambling activities following the state senate’s introduction of a new bill this week.

Four senators joined Mike Kowall the State Senator this week in the launch of a new attempt to legalize online gambling in the Lawful Internet Gambling Act with Bill 889. The new bill does not specify or indicate the specific types of online gambling that could or will be allowable and possibly this is to evade primary conflict on issues such as sports betting with the federal Amateur and Professional Sports Protection Act, which instigated legal problems previously in New Jersey.

It envisions the matter of eight; five-year online gambling licenses estimate at $5 million each to tribal groups or current state licensed operators within the state. Fascinatingly generates space for the state to discuss compacts with other US States, who are like-minded and even global activity as long as it is consistent with federal and state laws. While the upfront payment of $5 million may seem very steep, it does serve as a forward-looking payment on future gaming taxes. Monthly collection from operators will include state taxes at a rate of 10 percent based on the gross gaming revenue and operators who after the first five years of hassle-free licensing will have the option renew its license for five more years. Applicants will be required to pay a non-refundable deposit of $100,000. Consumer protection provisions stipulate that the minimum gambling age is 21 years of age, precautions to prevent gambling problems and arrangement for licensing of support vendors. The bill is the Senate Committee’s responsibility on regulatory reform, although it is still early days and it remains a minefield of conservative and religious oppositions that first would have to be cleared.

Sen Kowall pointed out in his introduction that the internet is an integral part of life and brings with its endless entertainment that includes gambling, now accessible to the public, and he feels, therefore, it should be properly licensed and regulated and could significantly benefit the state tax revenues.

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