Michigan Tribes’ ‘Poison Pill’ Slows iGaming Bill

Michigan state Rep. Brandt Iden (l.) said one provision in his HB.4926, allowing online casino gambling, could be the "poison pill" that derails the legislation. Tribes want assurance if the federal government bans tribes from offering online gambling, commercial casinos also couldn't offer it. Iden said that's unlikely but he's willing to change the language.

Michigan Tribes’ ‘Poison Pill’ Slows iGaming Bill

In Michigan, after several rounds of negotiations and drafting a new bill, state Rep. Brandt Iden’s HB.4926, which would allow online casino gambling and poker, seemed to be on its way to passage before the legislative session ends June 21. However, in talks with tribal leaders, one issue, which Iden calls the “poison pill,” remained unsolved.

Iden said the tribes, which operate 25 Michigan casinos, noted the latest draft of the legislation states if the federal government changes its laws to prohibit tribal casinos from offering online gambling, commercial casinos may continue to offer it. “What tribes want is that if the federal government says they are not allowed, the commercial casinos cease from online gaming as well,” Iden said. He noted he included the provision in the bill at the urging of Detroit’s three casino operators, who said they would not make the necessary investment to set up online gambling sites if later they had to stop due to a dispute between Indian tribes and the federal government.

However, Iden said it’s unlikely the federal government would make tribes stop offering online gambling. Even if it did, he said, Michigan would have little influence because tribes answer to the federal government. “The reality of it is, there isn’t a lot I can put in there to ease that concern,” Iden said. Removing the language could result in the Detroit casinos stopping any progress for the legislation; on the other hand, tribal leaders said they’ll stop it if the language remains in the bill.

Iden said he would attempt to include more equitable language in the bill to address the tribes’ concerns. He noted they were very close to an acceptable compromise. “At the end of the day, it will be a win-win for Michigan and our casinos, both tribal and commercial,” Iden said.

The bill also includes a provision authorizing sports betting following the U.S. Supreme Court’s lifting of the federal ban, which happened last month. Iden stated the ruling has resulted in more of his colleagues working to advance his bill in the House. It also needs to pass the Senate and be signed into law by Governor Rick Snyder. “I have a great partner in Senator Kowall, and we’re going to work to make sure it becomes law before the end of the year.”