Although the huge potential the US online gaming market has turned into a some sort of a mantra in the iGaming space, the idea of more states legalizing their online gaming markets seems to have failed to gain much legislative support over the past several years and get to any form of materialization.
In March, Michigan became yet another state to emerge as one considering the move. It was, in fact, Sen. Mike Kowall who introduced an iGaming bill that called for the legalization of online casino games and online poker within the state’s borders. The bill quickly passed the Senate Regulatory Reform Committee and its momentum disappeared just as suddenly as the legislative piece surfaced in the Michigan Legislature.
And while many thought (and quite understandably) that that was it for Michigan’s 2017 online gambling legalization effort, word spread that Sen. Kowall was actually working on amending his bill and presenting its revised version this fall after lawmakers have returned from their summer recess.
What We Know about SB 0203
Sponsored by Sen. Kowall, SB 0203 was first introduced on March 1, 2017. The bill was immediately referred to the Senate Committee on Regulatory Reform and was passed on March 9, without any amendments being added to it. The piece was then referred to the committee of the whole, which is yet to act on it.
However, with a new version of the bill currently being crafted by Sen. Kowall, any actions on it should not be expected before that new version is introduced. And this is expected to happen this fall, as already mentioned.
Generally speaking, SB 0203 is not very much like its online gambling counterparts from other states that have been considering the legalization of this type of service. The bill does not contain provisions for the regulation of a legalized online gambling industry, it only states that iGaming shall be legal in the state and tasks the Michigan Gaming Control Board with regulating online gambling as it finds fit and appropriate for the needs of the state and its residents.
Yet, the legislative piece is not completely void of details on who will be able to apply for an online gambling license, when and if this becomes possible. Under SB 0203, the state’s brick-and-mortar casinos will be able to start an iGaming operation and to participate in interstate compacts with states where online gambling is legal.
The state’s tribes will also be able to operate their own online gaming websites, as long as they make sure that they deploy the necessary responsible gambling, geolocation, and age verification tools and measures. Said measures will be set out by the Michigan Gaming Control Board.
To ensure fair terms for all participants in the state’s online gambling market, SB 0203 contains a provision, under which land-based casinos will have to wait for a year before launching their iGaming operations. Thus, tribes will have enough time to negotiate and amend their existing gambling compacts with the state to include online gaming operations.
According to multiple media reports, Sen. Kowall’s bill contains input from representatives of the state’s casinos, tribal officials, and other involved parties. It has also become known that come September, SB 0203’s sponsor would hold meetings with industry stakeholders, fellow lawmakers, and other parties to discuss important details regarding the revised legislative piece.
Sen. Kowall’s 2016 iGaming Legalization Effort
Sen. Kowall’s push for legal online gambling began last year, when the Senate lawmaker introduced the Lawful Internet Gaming Act or SB 0889. The legislative piece gained support from the Senate Regulatory Reform Committee, but failed in the Senate. Generally speaking, the bill did not differ much from its 2017 successor, SB 0203.
The Lawful Internet Gaming Act only provided for the legalization of online gambling, without presenting much information on how the industry should be regulated so as for the state and its residents to take best advantage of the iGaming legalization move.
