Michigan Online Poker Pooling Bill Headed To The Senate Floor

On Tuesday, a bill facilitating Michigan online poker sites to form alliances with other states made progress, despite a minor setback.

After a brief proposal by a Michigan senator, which could have posed another obstacle, the bill was unanimously passed by the Senate’s Regulatory Reform Committee.

In contrast to last week’s proceedings, where Sen. Curtis Hertel, the bill sponsor, testified for less than 3 minutes without facing any questioning, this time Hertel had to put in some effort behind closed doors.

If the full Senate approves the bill, it would enable Michigan online poker platforms to form agreements with other states such as Nevada, New Jersey, and Pennsylvania that also offer online poker.

Last week, Hertel expressed his hope to Playinmichigan that the bill would receive a Senate vote by the end of the month.

Bill nearly ran into another hurdle before vote

Sen. Dan Lauwers had engaged in a discussion regarding an amendment that aimed to link the bill to another bill, which had previously been delayed, permitting pari-mutuel betting on historical horse races.

Lauwers, following a short break, mentioned that he had a conversation with Hertel and decided to retract his amendment.

The committee unanimously approved the bill with a 9-0 vote.

We contacted Hertel to gather more information about the events, but we are still awaiting a response from them. The bill is currently en route to the complete legislative body.

Public hearing on Wednesday for online gambling

It is possible for online poker, sports betting apps, and online casino platforms to become operational as early as November.

The Michigan Gaming Control Board has scheduled a public hearing on Wednesday to deliberate over the draft rules concerning online gambling. Simultaneously, the licensing process is currently in progress.

Michigan’s 15 casino operators will be given an opportunity to form partnerships with various poker brands. Notable brands such as PokerStars, BetMGM Poker, and partypoker will be making their way to Michigan, and there is also a possibility of WSOP.com joining the list of potential partners.

The Multi-State Internet Gaming Agreement (MSIGA) enables states such as Delaware, Nevada, and New Jersey to establish interstate poker pools. This arrangement brings numerous advantages as it increases the liquidity in online poker rooms. Consequently, players have a wider range of cash games to choose from and can participate in tournaments with larger prize pools.

Lottery concerns outlawed interstate online poker

In December, Michigan joined the ranks of states legalizing online poker by passing expanding gambling laws. The Great Lakes State proudly became the sixth state to embrace online poker as part of its gaming repertoire.

Nevertheless, the last provision lacked a clause that could have directly enabled the formation of interstate compacts.

The clause was removed at the last minute due to worries that the progressive slot machine jackpots in online casinos would directly rival interstate lottery games like Mega Millions.

Hertel expressed his concern and emphasized the need to prevent such a situation: “We wanted to ensure that this was not permitted. However, the agreement was drafted to encompass all other games as well.”

“That was done without any valid justification. It was not included in the agreement made with the governor’s office or the legislature. Therefore, this corrective measure aims to address that unintended outcome and permit individuals who wish to engage in online poker to play seamlessly across different states.”

What’s in Michigan’s new bill?

On June 25, Hertel introduced a bill aimed at amending the Lawful Internet Gaming Act.

The Michigan Gaming Control Board has the authority to establish agreements with other jurisdictions, including Indian tribes. These agreements are aimed at enabling, managing, and overseeing internet gaming across multiple jurisdictions. However, the board can only enter into agreements that comply with both state and federal laws, and the gaming activities conducted under these agreements must strictly take place within the United States.

It is intriguing that the mention of “Indian tribes” hints at the potential for tribes to engage in online poker without adhering to state regulations. This presents a scenario that could materialize in states other than Michigan as they progress towards online gambling.

If courts side with the Department of Justice (DOJ) on the ban of interstate gambling communication under the Wire Act, the reference to agreements being “consistent with State and Federal laws” could become irrelevant amidst the ongoing federal dispute.

The ongoing battle hinders the growth of interstate pools, although it is not anticipated that the DOJ will emerge victorious.