More detail now available on Michigan online gambling legalisation bill

More detail has now emerged on S.203, a bill introduced to the Michigan Senate by Sen. Mike Kowall this week seeking to legalise and regulate online gambling in the state (see previous  report).

The bill appears to mirror that which ran out of time in the state Legislature last year, and includes provisions which call for regulations to be finalised within a year of the measure becoming law; and restricting licensing to existing licensed land casino operators in the state.

The bill proposes a minimum age of 21 years for gamblers, who must be physically within Michigan borders, and there are clauses giving Michigan officials a mandate to enter into interstate player sharing compacts with other like-minded and suitable states and jurisdictions.

Interestingly there appears to be a specific requirement that online poker be included in any online gambling offered by a licensee.

One change appears to be the removal of a previous cap on the number of licenses to be made available.

Three levels of licensing are proposed: 5-year licenses at $200,000for the initial year and $100,000 a year thereafter; 5-year platform provider licensing at an initial $100,000 with subsequent years at $50,000 annually; and 5-year vendor licenses at $5,000 to begin, reeducing to $2,500 annually in following years.

Kowall suggests an annual tax on GGR of 10 percent.

As reported previously, the bill is now with the Senate Regulatory Reform Committee, and according to the Poker Players Alliance is expected to be subject of a hearing by the nine members of that committee next week. The chances of progress are good; according to some reports six of the Kowall bill’s sponsors are members of the committee.

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