A bill to allow online gambling in Michigan has raised questions under the state’s constitution on whether it constitutes an expansion of gambling, which would have to be approved by the state’s voters.
According to bridgemi.com—operated by the Center for Michigan—the bill would allow a player to place a bet from anywhere inside the state. The wager, however, would legally be considered to have been placed at the licensed casino running the site, such as Detroit’s three casinos or at casinos run by Native American tribes.
The consideration is seen as circumventing the state’s constitution, which requires voter approval of any expansion of gambling under a 2004 amendment.
Under the bills, the Michigan Gaming Control Board, which regulates casinos, would license casinos and Internet game vendors that could supply their products or services to casinos, according to the website. Revenue would be taxed at 10 percent. However, the tax leads to complications—and could be lowered—under the gaming compacts with tribes, which can’t now be taxed.
The bill has been passed by a state Senate committee, but could face a long road ahead as it sets up a potential fight between Detroit casinos and tribal casinos.
Analysts are comparing the bill to New Jersey’s online industry. New Jersey also linked its online sites to Atlantic City casinos, meaning no voter referendum was needed for the state to approve online gambling.
Amaya Inc., the Quebec-based company which owns PokerStars, has predicted that online gaming at Detroit’s casinos alone could generate between $45 million and $59.4 million in revenue based on figures from New Jersey, the website said.
However, tribes have been opposed to the bills partly since they would have to waive their sovereign immunity to obtain licenses and be regulated by the Michigan Gaming Control Board and pay taxes.
