Iden: Fall Launch Of Michigan Online Gambling Could Hinder Early Market

Rep. Brandt Iden, the main supporter of the bills that resulted in the expansion of gambling laws in Michigan, concurs with a state regulator’s belief that iGaming and online sports betting may be introduced later this year.

However, during his video address at the ICE North America Digital conference on Monday, the Republican highlighted potential market concerns that may arise due to the accelerated nature of rule-making and licensing procedures.

Is the market prepared for the fall launch?

Tribal, commercial casinos must be ready too

After Gov. Gretchen Whitmer signed the bills into law in December, casinos formed alliances with online operators to develop their platforms, resulting in an anticipated early 2021 release for online gambling.

Several agreements have set launch timelines for early 2021.

Will anyone be prepared if the state launches earlier?

Iden reiterated on Monday that the launch requires licensing of at least one tribal casino and one of the three commercial casinos in Detroit.

It may prove to be difficult to locate one of each item. However, if two are readily available, is it equitable for other casinos? Moreover, how will this ultimately affect the variety of choices for consumers in the short run?

Iden expressed that encountering a scenario where operators who dedicated time to developing the platform could potentially face a competitive disadvantage. Additionally, he mentioned that these operators might not make the expected investment in Michigan.

Lawmaker says rule-making could wrap this summer

On Friday, Richard Kalm, the executive director of the Michigan Gaming Control Board, expressed his belief that a November release for iGaming and online sports betting is attainable.

He mentioned that the licensing process is being carried out simultaneously with the rule-making process.

Iden expected that the rule-making process would extend throughout the majority of the summer.

He mentioned that licensing is the most time-consuming aspect, so even if rules are established by the end of July or early August, the licensing process will still require more time.

Provisional licensing for operators in the retail sports betting industry was deemed possible by both Kalm and Iden, particularly considering that licenses were granted to operators in March during its launch.

Iden favors shared player pools for online poker

Iden expressed little optimism in the near future for Michigan to join Delaware, Nevada, and New Jersey in sharing online poker players through pooled liquidity when questioned.

The representative expressed support for it, but acknowledged that the same opposing forces that have historically resisted the expansion of gaming laws remain influential.

Iden stated that there is a battle against iLottery, as both the administration and our governor are concerned that bigger jackpots might attract funds and participants away from iLottery.

I hold a different opinion regarding that; I find the premise disagreeable. Nevertheless, I am of the opinion that it is an issue that should be acknowledged and dealt with.

In my opinion, the presence of bigger jackpots adds to the excitement in the marketplace. Moreover, I firmly believe that when there is overall growth and success, it benefits everyone involved. With the introduction of these substantial prizes, I anticipate that players will be enticed to engage in iGaming activities, explore iLottery options, and potentially participate in both platforms simultaneously.

Regrettably, the outcome may not align accordingly, yet it is undeniably a cause I am advocating for. Consequently, I truly anticipate witnessing it materialize in Michigan.

Lottery, iLottery growth encouraging to market

Iden later highlighted iLottery as a case that inspires hope in apparently competitive industries like land-based casinos and online gaming.

Iden highlighted the progress in Atlantic City, N.J., as evidence of the symbiotic relationship between land-based casinos and online partners. He mentioned that special promotions, improvements, and loyalty benefits are contributing factors to this thriving collaboration.

Mutual growth and promotions have been advantageous for both the iLottery and retail lottery in Michigan.

Iden explained that our iLottery is always connected to our retail lottery. Through cross-marketing and promotions, we have observed a significant increase in players.

We anticipate a similar scenario unfolding in Michigan. Once our online presence is established, the casinos will likely attract increased foot traffic due to the enticing offerings available to players.

In addition, Iden mentioned that monitoring the activities of online players will aid in identifying individuals with gambling addiction issues.

He stated that we can effectively monitor and provide better assistance to individuals struggling with addiction issues through technology, surpassing the support offered at traditional casinos.

Iden: Despite issues, Michigan should push forward

Consumers may initially have fewer options due to potential market issues if we proceed with a fall launch, Iden noted.

However, despite being a term-limited legislator from southwest Michigan, the individual believes that the state should still actively pursue it. This is primarily due to the budget deficits resulting from the closure of land-based casinos precisely at the initiation of sports betting in Michigan.

“It’s crucial, I believe,” stated Iden, “as a revenue source since even when the land-based casinos eventually reopen, their capacity will still be lower than what we’ve witnessed.”