Senate Committee Greenlights Internet Gaming Bills

capitol3Senate Bills 889 and 890 allowing eight Michigan casinos to launch their own Internet gaming websites were voted out of the Senate Regulatory Reform Committee, despite testimony claiming the bills are unconstitutional and would cost the state “hundreds of millions of dollars” in lost revenue from tribal casinos.

Legislation includes a statement that says the Legislature finds that the Internet is “an integral part of everyday life for a significant number of residents of the state,” and that “Internet wagering on games of chance and games of skill is a core form of entertainment for millions of individuals across the world that generates billions of dollars in revenue for governments.”

The bill would grant licenses for Internet gambling in Michigan for just companies that currently have a casino license. This would include the Detroit casinos, and with tribal governments that have a gambling compact with the state. The bill would also require the licensees to make a non-refundable $100,000 application fee and a $5 million license fee (which could be refunded if a license is not granted).

The bill also imposes a 10 percent tax on gaming revenues, which the Legislature would appropriate.

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