The Clock Is Ticking For Michigan’s Online Gaming Bill

The Michigan House of Representatives generated significant buzz last week as they prepared for a potential vote on online gaming legislation.

The excitement was premature.

Michigan Rep. Brandt Iden believed he had secured the necessary votes for the passage of H 4926 after making amendments to gain support. However, his assumption proved to be incorrect.

Iden explained, “I successfully added it to the agenda and had the chance to discuss it with my colleagues, which led to numerous questions being raised. Since some of them haven’t participated in the committee process or encountered this issue before, it can be intricate. Therefore, I am currently addressing the queries raised by the members.”

Online gaming bill still possible this year

Iden is currently engaged in the task of garnering support for the bill prior to the summer recess of the legislature.

Iden expressed his desire for everyone to avoid feeling rushed or pressured. He emphasized the importance of ensuring that individuals have all the necessary information and feel confident about the constitutionality of the matter moving forward. Despite this, the ultimate objective remains unchanged, which is to have this proposal reach the governor’s desk by the end of the year.

The timing poses a challenge in terms of putting a bill on the governor’s desk by the end of the year.

Taking a break on June 21, the legislature resumes work on September 5, leaving a mere three months to push the bill through the Senate if it successfully passes the house before the break.

In Michigan, all house seats are subject to election every two years, including this year. Given the upcoming contentious midterm election season, passing a controversial gaming bill may not be a top priority for many legislators in Michigan.

Tribal support and constitutionality remain questionable

Iden noted that he is currently occupied with responding to inquiries from his colleagues. The inquiries mainly revolve around the tribal compacts in place and the legality of the gaming bill, specifically without a constitutional amendment.

The representatives affiliated with tribal casinos have remained silent regarding their stance on the gaming bill, neither expressing support nor opposition. It is worth noting that tribal and commercial casinos often have conflicting interests, as exemplified by the situation in California.

In order to secure a positive vote, a legislator representing a district with a tribal casino will likely require the tribe’s approval. Iden suggests that the tribes should seek to renegotiate their compact with the governor to incorporate online gaming.

In my opinion, the inclusion of internet gaming as a platform for the tribes should be reconsidered within the framework of their compact. To achieve this, I propose that the state engages in separate negotiations with each tribe, taking into account their unique concerns and requirements.

House Speaker Tom Leonard remains unconvinced that the regulation of online gambling would serve as a sufficient alternative to amending the constitution, as the constitutionality of such gaming hinges on whether it is an expansion of existing gaming or a means of regulating current activity.

Iden stated that one of his goals is to emphasize the constitutionality of the legislation, which aims to regulate the activities currently happening in the black market. He believes that once he successfully convinces everyone, including the Speaker, of this fact, the process will become much smoother.

One month left until summer vacation

Iden has a little over a month left until the summer break to persuade his colleagues about the constitutionality of the bill. If (and it’s a significant if), he manages to accomplish that, there is a possibility for the legislation to succeed.

I am confident that the bill we approve and the governor signs will be entirely constitutional and capable of withstanding any legal scrutiny.

If the representatives can reach a consensus on the matter of constitutionality, reducing the tax rate from 15 percent to eight in the revised version could potentially persuade the tribes. This decrease in tax rate may be sufficient to gain the support of the tribal casinos and get them to align with the proposed changes.

According to Iden, we collaborated with tribal and commercial casino partners to ensure that the tax rate is agreeable to all parties involved. This aspect played a significant role in the creation of the new draft and required extensive efforts to resolve.

Iden is faced with numerous questions and a tight schedule to tackle them all. However, he is dedicated to the cause, which is a positive aspect.