Michigan Senator Mike
Kowall has introduced legislation to legalise and regulate iGaming in the
Senate bill 889,
introduced on April 14th, would create the Division of Internet Gaming for the
purposes of licensing and regulating online gaming, with the state’s licensed
land-based casinos and Tribal gaming entities eligible for licensure.
Applicants would be
required to pay an application fee of $100,000 together with a licence fee of
$5 million, with the latter offset against future tax liabilities.
activities would be taxed at a rate of 20 per cent of gross gaming revenue.
legislation restricts participation in online gaming to players within the
state who are over the age of 21, but also allows the Division of Internet
Gaming to enter into multi-jurisdictional agreements with other states and
foreign nations to share liquidity.
In order to safeguard
players, iGaming operators must allow players to self-exclude from
participation in online games, as well as offering tools for players to set
time, deposit and wagering limits.
The states iGaming
licences would be valid for five years, with the option to renew for a further
five year period.
SB 889 takes effect 90 days after being enacted into law,
subject to the prior enactment of senate bill 890.
SB 890, also introduced by Kowall, seeks to amend the Michigan
Penal Code to specifically authorise online gaming conducted under senate bill
Michigan is counted
among the more progressive US states when it comes to iGaming, with the
Michigan Lottery having been active online since 2014.
The lottery’s iGaming
activities, instant win and Keno games, generated revenue of $147m in 2015,
with the portfolio expanded earlier this year to include interactive draw-based