Michigan state Rep. Brandt Iden recently introduced HB 4926 which would allow the three commercial casinos in Detroit and the 23 tribal casinos in the state to offer online gambling and be taxed at a rate of 15 percent. Presented as a consumer protection issue, the bill reads, “It is in the best interest of this state and its citizens to regulate this activity by authorizing and establishing a secure, responsible, fair and legal system of internet gaming.”
Iden, chair of the House Regulatory Reform Committee, said at a recent hearing, “If I were a betting man, and I am, iGaming will become law at some stage.” He noted the process may not be completed this year, but he was optimistic that the bill will pass. Iden said he has talked dozens of students attending Western Michigan University in his hometown “and they game online, but don’t know that it’s illegal.” He added, “Technology is changing, businesses are going to have to adapt to that and they’re going to need an online platform at some stage. iGaming will happen in Michigan and whether I do it, or this governor signs it, I don’t know, but we have to start the conversation.”
Supporters of online gaming said it could bring in new revenue since the casino gambling industry has become stagnant. The three Detroit casinos win about $1.4 billion a year from gamblers; the 23 tribal casinos win about $1.5 billion annually. Michigan would become the fourth state to legalize online gaming, following Nevada, Delaware and New Jersey.
At the hearing, Poker Players Alliance Executive Director John Pappas testified that regulating online gaming would boost revenue for the state and provide protections for consumers. He also warned against the dangers of an unregulated industry. Former Attorney General Mike Cox said regulating real-money iGaming in Michigan “will lead to increased revenue at the same time protecting consumers” and others. He stated Michigan could follow the examples of the three states that already operate online gaming, and noted regulating iGaming would not hurt the state’s existing casinos nor increase problem gaming. He also said he believed the bill was in line with the state’s constitution.
The Michigan Gaming Control Board has not taken a position on online gambling. But Deputy Director Dave Murley said he was unsure how the courts would rule on the issue since state law requires people to be physically present in a casino when wagering money on any form of gaming. Murley also said he was concerned about the effects of the bill on casino-operating tribes.
In fact, the Nottawaseppi Huron Band of Potawatomi has stated opposition to the measure. However, tribal officials have indicated they would be willing to discuss changes to the bill that could make it more agreeable. Other online gambling opponents include the Coalition to Stop Internet Gambling, financed by Las Vegas Sands mogul Sheldon Adelson.
Meanwhile, state Senator Mike Kowall’s SB.203 in the revision phase, following talks with various interested parties over the summer. The new bill has not yet been presented to the Senate, so it’s not known if land-based casinos and/or Native American tribes are agreeable.
