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Richard Kalm, having served over 30 years in the Macomb County Sheriff’s Office, never anticipated his second career to span beyond a decade.
He’s now optimistic about the possibility of a third act in the sector.
After serving as the executive director of the Michigan Gaming Control Board for 14 years, the former director decided to step down from his position. Henry Williams, who previously held the role of deputy director, took over as the new executive director on May 17.
Similar to his time as a police officer, his tenure as the state’s head regulator follows a similar approach. Just like a traffic cop, Kalm’s agency takes measures to prevent certain actions while facilitating the progress of others.
Overall, the past fourteen years were filled with constant activity on the beat.
Recently, Kalm had a conversation with Playinmichigan regarding several significant subjects.
1. Greektown bankruptcy among first challenges
In 2008, the Greektown Casino in Detroit, previously owned by the Sault Ste. Marie Tribe of Chippewa Indians, went through bankruptcy proceedings approximately a year after Kalm assumed control.
Kalm attributed the successful navigation of those waters to the support and assistance he received from the executive team and staff.
Kalm mentioned that the finance aspect was what stood out to him the most, as he wasn’t fully knowledgeable about it. However, he had the support of intelligent individuals who assisted him in navigating through it.
Rock Gaming, owned by Dan Gilbert, acquired Greektown in 2013 after it had been sold to investors.
2. Board on the move to downtown Detroit
In 2007, when Kalm was confirmed, the MGCB had its headquarters in Lansing. Currently, while the agency maintains an office there, the main headquarters has shifted to Cadillac Place in Detroit’s New Center Area, located on Grand Boulevard.
The main focus of the regulatory body was to ensure that the offices were in close proximity to Detroit’s three casinos.
During regular circumstances, two of his deputy directors resided in Detroit while the remaining two were situated in Lansing.
Due to the separation caused by the pandemic, Kalm mentioned that certain aspects of communication experienced noticeable enhancement for the executive team while they were confined to their homes.
Kalm stated that he and his team hold a staff meeting every day, which has likely led to improved communication compared to when they were working in the office at varying times.
3. Horse racing moves to MGCB control
The history of horse racing in Michigan is a sorrowful tale marked by decline.
The regulation of the industry was transferred to Kalm in 2010, making him the de facto horse racing commissioner. This decision was made when former Gov. Jennifer Granholm dissolved the Office of the Racing Commissioner.
As the years went by, various tracks in the state began to shut down. In 2013, Mount Pleasant Meadows ceased operations, followed by Sports Creek Raceway in Swartz Creek after 2014. The year 2018 marked the closure of Hazel Park Raceway, leaving Northville Downs as the sole remaining live track in Michigan.
Despite the boost provided by advance deposit wagering, concerns remain regarding the long-term sustainability of the sport.
Kalm stated that the involvement of the federal government in regulating medical practices for horses would be beneficial.
Kalm expressed that while the federal government may not excel in various areas, it is beneficial to have standardized regulations for drugs and doping nationwide. He acknowledged that each oversight racing commission office operates with slight variations, making it essential to establish some level of standardization.
While the overall impact is mostly positive, I hope the focus remains on the local racing commissioner who exercises authority over the stewards. They possess valuable knowledge about the players and the issues happening at the local level.
4. MGCB takes charitable gaming under its purview
In 2012, the MGCB assumed responsibility for overseeing Millionaire Party, also known as charitable poker.
Kalm utilized his extensive law enforcement experience to take action, rectifying the presence of dishonest individuals in the realm of charity poker events. He diligently recruited reliable suppliers to assist in organizing these games.
Sometimes, even the charities themselves were not particularly fond of the prosecution and elimination of suppliers.
Kalm explained that the charities’ main objective was to generate funds for their organizations. However, some of the suppliers involved were untrustworthy and did not provide the full amount of money owed to the charities. Despite this unfortunate situation, the charities were content with making $1,000, even if they were actually entitled to $9,000.
“Although our stance wasn’t widely embraced, what we simply did was administer the law as it should have been executed from the start.”
5. Ads, revenue are still issues for online gambling
Kalm extended his tenure beyond his second six-year term in order to successfully launch online sports betting and internet gaming.
According to Kalm, the January 2021 launch has been widely considered a success. However, he highlighted concerns regarding the inadequate tax revenue generated from sports betting and the overwhelming presence of gambling advertisements, which require close monitoring.
Kalm stated that there is no restriction on the number of advertisements allowed on the sports betting side. Despite receiving numerous inquiries, he acknowledged the inability to prevent advertising activities.
Kalm expressed his belief that as casinos return to full capacity in the near future, there will be an increase in cross-marketing strategies to attract online casino customers to physical gambling establishments.
Kalm expressed his belief that problem gambling will inevitably manifest itself in some way, requiring attention and intervention. However, the specific manner in which it will arise remains uncertain.
The industry’s current outlook is quite optimistic. However, it is crucial to establish a suitable framework and be open to adaptability. The Legislature has been exceptionally supportive in this matter. In the near future, we may need to consider making certain adjustments, such as potentially restricting certain game types, limiting advertising, or even eliminating some write-offs.
6. Kalm bullish on Williams as new director
Kalm collaborated closely with Williams, praising his extensive experience and expertise.
“I offered my full support to him and, in fact, advocated for him as the director, primarily because our leadership team remains constant,” Kalm expressed. “Therefore, I genuinely believe that he understands the situation.”
Although he may not have a background primarily in law enforcement, he recognizes its importance. Additionally, he is our main contact for handling matters related to commercial casinos, and he possesses a strong rapport with them. This area is crucial to our organization as it is our foundation and where we initially began.
“He endeavors to maintain a high level of reasonableness and fosters a business-friendly rapport with them, as per the expectations set by the two governors I had the privilege of serving under.”
7. Kalm hopes to stay in the gambling industry
Kalm expressed his desire to remain involved in the gambling industry, possibly by offering his services as a consultant.
I will continue to engage in gaming in some capacity, most likely. While I don’t have any concrete plans at the moment, what I do know is that I have a deep passion for this industry. Over the past 14 years, I have closely observed its growth on both a national and state level. As a result, I have acquired a valuable amount of knowledge that could benefit others.
“Let’s simply discover where this journey leads me.”
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