Michigan has become yet another US state to have legislators consider the legalization of online poker and Internet gambling, in general, with Pennsylvania and California being amidst discussions on the matter. On Friday, Michigan State Sen. Mike Kowall introduced what was dubbed The Lawful Internet Gaming Act or SB 889, the full text of which could be read here.
Generally speaking, the bill calls for the legalization and subsequent regulation of online casino games and poker. The bill was presented to the State Senate and was referred to the Senate Committee on Regulatory Reform. Here it is important to note that Sen. Kowall is a member of the said committee. He is also the vice chair of both the Oversight and the Commerce Committees and is a member of the Joint Committee on Administrative Rules and the Government Operations Committee.
The bill’s sponsor has explained that his proposal was mainly driven by the fact that the Internet has turned into an integral part of people’s lives and that online wagering on both games of chance and games of skill has become extremely popular around the world, annually generating billions of dollars in tax revenue.
If approved, the proposed legislation would put certain restrictions regarding who would be allowed to access and wager on online casino games and play poker. To be more precise, only players aged 21 and above will be able to take advantage of online gaming options, provided that those are eventually legalized.
SB 889 would allow for Michigan-located commercial and tribal casinos to apply for the operation of Internet gambling services. However, it is said in the proposal that no more than eight licenses would be awarded. Licensees will have to pay the amount of $5 million as a licensing fee, including a non-refundable upfront payment of $100,000. Operators conducting online gambling services will also have to pay an annual 10% tax on the overall revenue they generate.
Another important thing to take into account is the fact that the proposed legislation does not prohibit access to gambling websites based on players’ location. In other words, the bill makes it possible for interstate and even international compacts to be signed, thus allowing gambling customers from other jurisdictions to play in Michigan-based online casinos and poker rooms.
With the legislation being introduced only yesterday, it is far too early to make any prediction on what is going to happen eventually. However, it is good to note that Michigan has certain experience with the provision of online gaming options as the state was one of the first to legalize online lottery sales and this could be instrumental in lawmakers’ final decision regarding SB 889.
