Michigan Senator Believes State Will Pass Online Poker By HolidaysFollowing Compromise On Tax Structure, Sen. Curtis Hertel Told Media That Bill Is Virtual Lock To Pass |
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Last year, Michigan just missed out on legal online poker with a last-minute veto from the governor.
This year, the state is giving online gaming another try and according to local media outlets, signs are pointing towards passing this time around.
Last December, Republican Gov. Rick Snyder vetoed the bill as one of his last acts as governor because of fears of hurting online lottery sales. The lottery was a source of $1 billion worth of school funding and online sales made up seven percent of that revenue.
Gov. Gretchen Whitmer, a Democrat, took Snyder’s place and expressed nearly identical concerns as her Republican predecessor when online gaming bills were re-introduced last March. She argued that the 8 percent tax rate proposed in the legislation by Republican Rep. Brandt Iden was too low to offset any possible losses to the public education system. Whitmer wanted a 40 percent tax rate.
For most of the year, it looked like passage was bleak because of the rift between Iden and the current administration. Democratic Sen. Curtis Hertel, however, came in to help negotiations, helped institute a tiered tax structure for operators with the biggest earners paying 23 percent on gross gaming revenue.
With neighboring states such as Illinois and Indiana having passed sports betting bills, Iden feels that the time to move on gambling is here.
“If we don’t do something to make sure that we are competitive in that marketplace, we are going to lose out,” Iden told local media. “The longer we delay on this frankly is another day that we miss out on a dollar.”
Hertel believes that the legislation will pass through the Senate this week. It passed the House Ways and Means Committee in October. He has told other media outlets that he believes Gov. Whitmer will sign the bill before Christmas.
If passed, the Lawful Internet Gaming Act would allow both tribal and commercial casino operators the ability to offer online poker and other casino table games. Casinos have the option to offer one brand for its online poker room and a separate brand for the rest of its offerings or keep a single site for the entire operation. Sports betting, both online and retail would also be legalized.
Online operators that do not have a land-based partner, which are many of the major online poker rooms, would need to partner with an existing casino to operate in the state. Online licenses would cost $100,000 and would have a $50,000 annual renewal fee.
Michigan currently has 24 tribal casinos throughout the state and three commercial casinos in Detroit. In 2018, Detroit casinos tallied record profit.
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