Tribes Continue To Be A Sticking Point In MI Online Casino Bill

Michigan Rep. Brandt Iden believed he had secured the necessary votes to successfully pass his bill legalizing online gambling and sports betting in early May.

He was mistaken.

Existing tribal compacts posed concerns regarding their potential impact, while the constitutionality of passing the online gaming bill without a constitutional amendment raised additional questions.

Iden has been persistently working for a month, making efforts to accumulate the necessary votes to successfully pass the bill before the legislative session concludes on June 21.

While Iden successfully addressed certain inquiries from his colleagues, new questions have emerged, posing a potential threat to the bill’s approval.

The remaining issue that “poisons” the bill

In order to secure backing from the three leading Detroit casinos, Iden incorporated Section 16 into his legislation, H 4926. This particular section grants authorization for online poker, casino gaming, and sports betting.

Furthermore, the section contains a provision stating that commercial casinos would retain the right to conduct online gaming activities even if federal legislation were to restrict tribes from offering online gambling beyond reservation grounds.

The section is referred to by Iden as the “poison pill.”

If the tribes are compelled to halt their operations, they are requesting that commercial casinos also suspend their activities.

The commercial casinos requested the stipulation to safeguard their investment in online gaming, as they do not wish to bear the consequences of a decision that is unrelated to their industry.

Tribal casinos want assurances the state can’t provide

Indian tribes are acknowledged as autonomous nations, and therefore, they do not come under the authority of the state. The agreements they establish are discussed separately with the governor, under the supervision of the Department of Interior.

The desire of tribal casinos to receive equal treatment and regulations as commercial casinos is reasonable. However, it is not the responsibility of the state to facilitate this. Iden is attempting to mitigate the situation, but his influence is limited.

During the interview, Iden expressed his thoughts by stating:

The truth is, there is limited potential to alleviate that concern. There is no specific law or regulation I can implement to address your issue if you are a sovereign nation accountable to the federal government.

We have made significant progress with the tribes regarding this legislation, reaching 90 percent of our goal. Although it remains uncertain if we can achieve complete agreement, we are confident that online gaming will be established in Michigan. We anticipate the involvement of all parties, ensuring a positive outcome for both the state and our diverse casinos, including corporate and tribal establishments. Ultimately, this will be a mutually beneficial outcome.

There is still hope for an online gaming bill in Michigan

States now have the power to legalize sports betting after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA).

The emergence of this noteworthy development has ignited enthusiasm for online sports betting and online gaming legislation in multiple states, including Michigan.

Iden has encountered difficulties in garnering sufficient backing from his colleagues for the bill. The recent surge in online gaming in the United States has provided a favorable environment for the cause.

“We now have a slight advantage with the decision,” Iden expressed. “I had a feeling it would happen, but it happened earlier than expected, which is a positive thing. It has certainly sparked more discussion. Many of my fellow colleagues have been posing insightful questions about the bill. I believe this can only assist us in bringing it to a vote and passing it in the House.”

Iden is persistently working towards bringing the bill to the floor for a vote prior to the legislature’s summer recess. Even if the bill successfully passes, it will encounter another hurdle in the Senate.

Iden is relying on Senator Mike Kowall for support in the other chamber. Both Iden and Kowall are dedicated to successfully passing a bill regarding online gaming before the year concludes. However, at the moment, they both have a challenging workload ahead of them.