Wait… What About Online Poker? How 2021 Looks For Michigan Players

Michigan online poker enthusiasts must have felt like they were eagerly awaiting the flop throughout the entirety of 2020. However, the positive update is that 2021 appears to hold great promise for online poker in Michigan.

The final weeks of 2020 paved the way for the potential initiation of online poker platforms in Michigan. However, this outcome is not guaranteed and there are various factors that need to fall into place before mid-January.

The Michigan Gaming Control Board has projected that online gambling will be launched within that specific time frame. However, online poker may not necessarily have a dominant position.

Where Michigan poker online sat as the calendar turned

Legislators and regulators’ efforts in 2020 have instilled optimism for 2021, as both the MI Legislature and the MGCB made significant progress simultaneously.

In December, the MGCB granted conditional approvals to MGM/partypoker and PokerStars poker Michigan as operators. Although this provisional licensure is merely a part of the regulatory process, it holds significant importance.

In essence, this development sets the two online poker brands on a course towards obtaining permanent licenses. Barring any unforeseen circumstances during the ongoing evaluations by the MGCB, these two poker operators are likely to emerge as the first ones in the state.

A few weeks later, following the move of the Michigan Senate to enhance the market’s profitability for upcoming operators, the upper chamber of the Michigan Legislature passed a bill in early October with an overwhelming majority. This bill grants authorization for multistate agreements regarding online poker.

Afterwards, on December 17th, the House concluded its vote, sending the bill back to the Senate for final approval. Subsequently, on December 29th, the Senate granted its agreement, forwarding the bill to MI Gov. Gretchen Whitmer.

If a provision like this is not included, poker players in Michigan will be restricted to playing solely against each other. However, entering into an agreement with other jurisdictions like New Jersey and Pennsylvania has the potential to significantly expand the player pool.

As we embark on 2021, we witness a few operators who are on the brink of obtaining their licenses, and a poker bill that spans across multiple states has successfully overcome legislative obstacles. The unfolding of the remaining events will be revealed in the upcoming weeks and months.

Could other poker brands come to Michigan?

Although partypoker and PokerStars seem to be ahead of other competitors, their lead may not last long. Currently, the MGCB has chosen not to disclose the number of applications it is reviewing or the identities of the applicants.

The Great Lakes State may offer a convoluted pathway for poker enthusiasts with a keen interest in 888 Poker and the renowned WSOP branding.

Caesars and 888 collaborate as partners in various jurisdictions, and they have the potential to extend this partnership to include Michigan. However, since Caesars does not have any physical establishments in the state, there are additional connections to be made.

Caesars has secured a deal to acquire none other than William Hill, the renowned company. Additionally, William Hill has established a market access agreement with a tribal casino operator in Michigan. While this journey may not be devoid of obstacles, it is still a viable path forward for both parties involved.

WSOP and 888 surpass other online gambling brands like BetRivers, Golden Nugget Online Gaming, and Parx in terms of market access deals for MI and provisional license approvals.

The main question is when any of the operators will be live in MI, regardless of who gets to market first. Currently, this remains the biggest mystery of all.

When might Michiganders finally be able to play?

Right now, it is uncertain how long it will take for the MGCB to complete its licensing process for partypoker and PokerStars. The operators are just as clueless as everyone else at the moment.

According to a BetMGM spokesperson, there is currently limited information to disclose. However, the PokerStars representative mentioned that they will provide updates once more details become available.

Last month, MGCB spokeswoman Mary Kay Bean mentioned that although the MGCB plans to authorize online slots, sports betting, and table games by mid-January, poker may not be included in this authorization.

At the time of the initial launch, it remains uncertain whether poker will be included in the games lineup. This decision will be contingent upon the preparedness of the operator to provide poker games, which will be evaluated by both independent testing labs and our own gaming lab. Additionally, the inclusion of poker will also depend on the operator’s inclination to offer this particular game.

Companies such as BetMGM and The Stars Group, which own partypoker and PokerStars respectively, may prioritize launching other online gambling verticals in Michigan. This is due to the fact that online slots, table games, and sports wagering products generate higher revenue.

Hence, the possibility of online poker launches being delayed until later in the year is due to their lower priority. Additionally, legal concerns that may impact both the current and future state of online poker could also contribute to a sense of caution.

How a New Hampshire lawsuit could affect online poker in Michigan

Even after sixty years, the federal Wire Act of 1961 still holds significant implications. The outcome of a lawsuit initiated in New Hampshire could potentially have profound consequences for online gambling nationwide, including the state of Michigan.

However, in 2018, everything changed when the US Justice Department decided to alter its interpretation of the Wire Act after maintaining the same stance for the majority of those 60 years.

In that particular year, the Department of Justice (DOJ) released a fresh perspective on the act. According to their interpretation, the act’s language prohibiting the transfer of gambling information between states could potentially extend to encompass all forms of online gambling, including poker.

The NH Lottery’s interpretation is still being contested through ongoing litigation. While various outcomes are plausible, if the court ultimately supports the current interpretation, it would spell doom for multistate poker games.

The possibility remains that the DOJ might change its stance before a final decision is made. President-Elect Joe Biden has not yet chosen a new US Attorney General, who could potentially issue a different viewpoint, rendering the lawsuit against the NH Lottery irrelevant.

The outcome of those events could shape the course of action in the MI Legislature regarding the same matter. A favorable outcome there could enhance the appeal for operators to enter the market swiftly in MI.

Will Gov. Whitmer approve multistate poker?

Similar to the swift authorization process of the MGCB for operators to commence betting, the level of support for a multistate online poker agreement in the governor’s residence remains uncertain. While the bill enables the establishment of such a pact, its immediate implementation is not guaranteed. Governor Whitmer may choose to wait and observe developments at the federal level before taking any action.

The state has the option to establish a pact with NJ, PA, or both, depending on certain conditions. This agreement would allow players from different jurisdictions to compete against each other, but it would only come into effect upon the enactment of federal legislation or a positive court ruling.

The availability of such games, if and when they become accessible, would significantly enhance the appeal for operators in all three states to engage in online poker.

While online poker may not reach the popularity levels of slots or sports betting, the ability to engage in cross-state play presents several marketing opportunities.

If online casino and sportsbook products are launched in MI this month, it would allow regulators to focus on preparing legal Michigan poker. Although it might be introduced later in the year, early 2021 appears to be a promising timeframe.