Michigan State Introducing New Online Gambling Laws

Reviewed By Paul Jacobs Casino Expert

While Ohio slowly moves toward allowing sports betting, Michigan state is polishing up new regulations to allow more online gambling. These new policies will allow three Detroit casinos and a dozen Native American tribes to offer sportsbooks and casino-style games online. And, will be subject to the Lawful Internet Gaming Act and provisions.

When the Act was passed, it allowed for all types of online gambling. However, each class needs strict regulation to ensure that revenues are going to the state. Also, online casinos must meet fair gaming practices and only allow players from within Michigan.

Michigan State Internet Gambling

Michigan State Lottery Paves the Way

As the pandemic effectively shut down the United States, many Michigan state residents turned to legal online lottery games for entertainment. Revenues from these sales are higher than usual, prompting lawmakers to start working on other forms of online gambling.

While the initial act allowed the practice, there’s more to do to get casino sites and sportsbooks launched. First, there need to be laws regulating these avenues, which is what lawmakers are focusing on. In a statement, the Michigan Gaming Control Board (MGCB) encouraged suppliers to apply for provisional licenses. All applications will be investigated to verify that the sites are following the terms.

Under the terms, licenses will be issued when sites have incorporated these services:

Payment processing
Geolocation processes
Know your customer identity (KYC) verification technology

No Timeline for Michigan State Gambling

Even with provisional rules in place, the rules are expected to take a while to be drafted and passed. At first, the MGCB said that these would be in place by early 2021. However, it’s now pushing for late 2020 to start generating revenues to recover the economy.

Other expected policies will include exact license fees, tax rates, and which operators can partner with existing casinos. Since part of the official act expressly states that only Michigan state casinos can launch online services. So, many are hopeful that licenses and lucrative deals are coming sooner rather than later.