Michigan Governor Rick Snyder recently signed into law Senate Bill 202, which establishes that state laws against gambling do not apply to a social media internet game—a game offered online, on a telephone or other mobile device. State Senator Jack Brandenburg sponsored the measure, which clarifies that social media games that reward players with extra playing time will not be considered gambling in Michigan. The bill does not include fantasy sports contests.
Some businesses have used free online games to promote themselves. The free games typically offer additional plays instead of prizes. However, the added plays or ability to buy additional plays in these games constituted gaming under a state Supreme Court case from the mid-1980s, because it created value. Lawmakers said the law needed to be amended to exempt social media games.
A House Fiscal Agency analysis said, “With such growing popularity, some businesses have seen a potential to use similar free online social media games to grow their brand. In particular, some casinos have created social media internet games played through their websites as a way to draw new customers to their casinos. The games are generally free and offer additional plays rather than actual prizes, though additional plays often can be purchased for a few dollars. Since the games are seen more as a marketing tool to promote a specific business, and not as a means of revenue, some feel the gaming laws should be amended to create an exemption for such social media internet games.”
Also last week, state legislators are considering a bill that would allow parimutuel bets on statewide horse races placed through licensed third-party apps on mobile devices and tablets. The measure would amend the Michigan Horse Racing Law of 1995 by not requiring bettors to be physically located at a racetrack or inside an off-track betting facility in order to make a wager.
Before moving forward on the measure, the Michigan House will consult with operators of Detroit’s three commercial casinos and the Saginaw Chippewa Indian Tribe, operators of the Soaring Eagle Casino in Mt. Pleasant, who are expected to oppose the bill. Opponents said it would expand gambling, which requires voter approval in Michigan, and legalize online betting. Proponents said betting via phones or tablets does not create a new form of betting and therefore is not banned under the state constitution.
