In Michigan, state Rep. Brandt Iden recently amended his online gambling bill, HB 4926, the Lawful Internet Gaming Act, to address several issues. Among them are lowering the tax rate from 15 percent to 8 percent and adding sports betting to the bill. Originally introduced in 2017, Iden said he hopes to get the legislation passed before lawmakers leave for their summer break, June 21-September 5.
“I got it on the agenda and got the opportunity to bring it up to colleagues, and a lot of questions came out of it. If they didn’t sit through the committee process and haven’t dealt with this issue, it can be complicated. So I’m working through the members’ questions,” Iden said.
He said colleagues questioned whether the bill would be an expansion of gambling, which would require a constitutional amendment. “One of the things I’m trying to address is that the legislation is constitutional, that it merely regulates what is going on in the black market currently. Once I get them comfortable with that, the Speaker included, I think things will certainly be easier,” Iden stated. He said he believed the Coalition to Stop Internet Gambling, backed by Sheldon Adelson, among other opponents, are using the constitutional argument to stop his legislation. However, Iden said, “I believe the bill we pass and the governor signs will be a bill that’s fully constitutional and would withstand a court challenge.”
The three Detroit casinos—MGM Grand Detroit, Greektown Casino and MotorCity Casino—have expressed support for the measure. However, Iden’s changes still have not been enough to gain the support of Michigan’s 14 Native American tribes. “I believe that adding internet gaming as a platform for the tribes has to be renegotiated through their compact. I think the best way to do it is to ensure the state negotiates with each tribe independently, making sure we address their specific issues. A lot of the members have tribal gaming establishments in their districts, and I know they have been in conversations with their tribes about the bill. I wouldn’t say we’re at a point of total neutrality with them yet, but I continue to work with the tribes so they feel comfortable that, as the legislative process continues, their interests are being advocated,” Iden said.
He concluded, “I don’t want anyone to feel rush or pressured. I want to make sure they have all the info they need and are comfortable with the constitutionality of it going forward. The goal is still to get this on the governor’s desk this year.”
State Rep. Robert Kosowski also has offered three bills which have been held up in the Committee on Regulatory Reform since late last year. The first two measures would allow sports betting in Michigan casinos and spell out certain regulatory issues; a third bill would allow parlay wagering at state lottery sites.
