The state of Michigan is moving closer than ever to introducing legislation that could result in the legalization and regulation of online gambling this year. State Senator Mike Kowall is the sponsor of the bill known as the Lawful Internet Gaming Act, or S203. Efforts last year to legalize online gambling in Michigan did not succeed, and S203 is essentially picking up where the last year’s bill stopped.
The Lawful Internet Gaming Act calls for state gaming authorities to develop rules and regulations that would govern the licensing of online gambling. They will need to do within 12 months of the bill passing into law. Eligibility for obtaining an online gambling license will be limited to licensed Michigan brick-and-mortar casinos, although no number was specified in the bill proposal. Players at potential online casinos will need to be physically located within the state’s borders and may not be younger than 21 years of age. The law also states that Michigan may, in the future, enter into interstate compacts with other gambling jurisdictions or states who have their own legalized gambling industries.
The law also states that the online gambling bill has to include the game of poker, but need not be limited to poker – leaving quite a wide berth for the kinds of games that can be offered in a potential Michigan online poker market.
Luckily for operators, they will be charged a relatively low tax rate of just 10% of their gross gaming revenue.