The Michigan Senate Regulatory Reform Committee recently voted 8-1 for SB 889 which would legalize online gambling. The measure, sponsored by state Senate Majority Floor Leader Mike Kowall will now move to the full Senate, which will have to move fast since the legislative session will end Thursday, June 16. There is no companion legislation in the House.
Under the proposal, operators—limited to Michigan’s commercial and tribal casinos–would have to pay a $100,000 application fee and a $5 million internet gaming license fee, which would be an advance payment on internet wagering taxes. The proposed tax rate is 10 percent. The bill also would create the Division of Internet Gaming within the Michigan Gaming Control Board to oversee the new games.
Michigan established an online lottery in 2014 and has been considering online gambling ever since. It would become the first state to legalize online poker since 2013 if the legislation becomes law. Currently only Nevada, Delaware and New Jersey offer real money gaming online. Similar legislation is being considered in Pennsylvania, California and New York.
Michigan has about two dozen tribal gaming facilities, plus three in Detroit which took in $1.37 billion from gamblers in 2015, about $40 million more than 2014 and less than earnings in 2010, 2011 and 2012.
