Michigan Passes Bills to Legalize 4 Online Gambling Activities

Thursday, January 30th, 2020

Michigan will be the next hub for legal online gambling activities by March or April!

Early last December, Legislature sent a set of bills to Governor Gretchen Whitmer to append her signature on proposals that will legalize four internet-based gambling activities in Michigan.

The documents were issued to the Governor’s office the same day after the proposals passed Senate with awe-inspiring bipartisan votes.

Though the House had approved the bills, it begged to review some amendments made to them (by Senate) before mailing to Gov. Gretchen for approval. All bills went through except one which was to be mailed to the governor at the start of this year. But the pending bill was only related to penalty matters, not the legalization of online gambling.

Nevertheless, proposers said it’s still too early to predict when online gaming and betting will kick off in Michigan. Forces like the time it takes to lay down rules and regulations, licensing periods, and how soon certified operators will install the necessary tech will determine how soon activities start.

Here are some newly approved online gambling options in Michigan.

1. Sports betting

Sports staking is now legal at both on-premise and online levels in current casinos.

Gambling-clubs will pay a tax-rate of 8.4%.  Detroit-based clubs will pay an additional 3.25%. Read more in the bills to find out more on tax regulations and sports betting.

2. Online gambling

Blackjack, Poker, Slots, as well as other casino-type games are now legal in Michigan for anyone 21 or older. Internet gambling is only permitted on current Michigan gaming-clubs, whether Detroit or tribal casinos situated within its borders.

All gambling-clubs offering online gambling must pay (1) $50,000 in registration fees, (2) $100,000 in license-fee, and (3) $50,000 in per-year fee. A permit or license remains active for 5 years.

Vendors or suppliers serving casinos that offer these games pay (1) $5,000 in registration fee, (2) $5,000 in license-fee, and (3) a $2,500 per-year fee.

3. Fantasy Sports

Fantasy games virtualize real players and use real player rating to bet on teams. A fantasy host must be state-licensed via Michigan Gaming Control Board, and must not be a casino owner.

Fantasy sport hosts will pay (1) $10,000 in initial fee and (2) $5,000 for per-year renewals. Fantasy games will be eligible to an 8.4% tax-rate.

These laws, however, do not relate to home-run fantasy games where the general public is not participating—less than 15 participants, and less than $10,000 gathered in entry fees.

4. Horse-racing organizers

The law will also license “third-party horse-race organizers” who can take horse-race bets online as well as real-time bets on those.

Final Words

It seems like more casinos will go seeking gambling merchant accounts to take advantage of these new offerings. Customers in Michigan will also have more games and ways to stake their money.