Online Poker Is Now Legal in Michigan

On December 20th, Michigan Governor Gretchen Whitmer finally signed the bill making online poker available in the state of Michigan. Apart from online poker, the long-awaited bill also legalises online sportsbetting and online casino games. Michigan thus follows in the footsteps of other American states, legalising online poker and online gambling after a challenging decade for the gambling industry.

Things really went sour for the American poker players after Black Friday, where the American authorities cracked down heavily on popular online poker rooms Pokerstars and Full Tilt Poker. Full Tilt Poker was caught in a major scandal, having run a pyramid-like business structure, ultimately owing thousands of players real money. It was a major stain on online poker in the United States, and it has taken years for the industry to rebuild its reputation.

That is finally happening now. The act in Michigan has been named the Lawful Internet Gaming Act and establishes a chief regulatory body that, among other things, will be responsible for the issuing of licenses to prospective gambling operators. The model of a chief regulatory body is something we know from other countries as well, as it has become the most popular way of administering a regulated and licensed online poker market.

Online Poker Regulations in the UK and Scandinavia

In the UK, the main regulatory authority is called the United Kingdom Gambling Commission. It is entrusted with the issuing of licenses and also controls that all operators are in line with UK laws and regulations. For example, there are certain standards for responsible gambling that all online poker rooms in the UK have to comply with. If they fail to do so, the Gambling Commission can fine them and, in extreme cases, revoke their license (one example of this found here).

Denmark and Sweden have very similar regulatory systems. In Denmark, the chief gambling authority is known as Spillemyndigheden – in Sweden it’s called Spelinspektionen. Just like in the UK, both Denmark and Sweden operators have to comply with certain standards and failure to do so can result in fines or revoked licenses (see more here – reference in Swedish). The new gambling laws have also been praised because they help to accumulate tax revenue for the respective countries (more information here – reference in Swedish). In Michigan, the new law is expected to increase tax revenue by approximately $20m. Due to the federal structure of the US, it is the individual states that are setting up regulatory bodies and issuing license. A license in Michigan does not allow online poker rooms to operate elsewhere in the country.

Prospective Online Poker Rooms in Michigan

The new bill makes Michigian the sixth state to legalize online poker, following in the footsteps of New Jersey, Pennsylvania, Delaware, Nevada and West Virginia. The legalisation became official over the Holidays, so prospective online poker rooms seeking to operate in Michigan have hardly had any time to prepare their bids. Due to the legalisation of online poker in other states, many operators have already established themselves in the US, including Intertops, Bovada, SB Poker and Carbon Poker. It would not be surprising to see these enter Michigan as well.

However, new online poker rooms are expected to emerge as well. At this point in time, Pokerstars are only offering their services in New Jersey and Pennsylvania, with Michigian a potentiel third option. 888 Poker is also an option. 888 players from New Jersey, Nevada and Delaware can already play against each other in the same player pool, and 888 Poker is expected to continue expanding to other states.

Overall, the future for online poker in the United States looks bright once again. The online poker rooms are back, the players are embracing it and legislators have realized some of the positives of legalizing online poker – such as increased regulation and tax revenue. Chances are the 2020s will be much better for US online poker than the 2010s.

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