The state of Michigan has gotten closer to entering shared liquidity agreements with other states after SB 991 obtained approval from the House of Representatives, via an 85-16 vote. The bill now heads to Governor Gretchen Whitmer’s desk, who is expected to sign it into law.
SB 991 was put forward as an amendment to the 2019 Lawful Internet Gaming Act (LIGA). The bill seeks to allow the Michigan Gaming Control Board (MGCB) to participate in interstate online poker compacts with gaming regulators in other US jurisdictions, including tribal gaming authorities. The bill, sponsored by Senator Curtis Hertel, Jr, passed the Senate by a vote of 36-1 in late September.
LIGA was among a series of legislations approved into law by Governor Gretchen Whitmer in December 2019, authorizing expanded gambling in the state, to include online casino games, online poker, sports betting, and fantasy sports. The launch of the state’s regulated online gambling market has become a top priority this year after the COVID-19 pandemic forced the closure of the state’s land-based casinos, translating to a massive loss in gambling revenue.
The government is aiming to use tax revenue generated from online gambling to fund Michigan schools and also boost funding to help firefighters suffering from cancer.
The MGCB has since developed its own set of rules and regulations to guide and supervise the industry. It has also vetted operators looking to offer online gaming to Michigan customers. A total of 15 gaming operators have recently been granted provisional licenses, the first ones to be issued in preparation for the launch, which is planned to take place in January 2021.
Online Poker Not Expected During Initial Launch
The original goal was to get the regulated online gambling market up and running by the end of this year, however the gaming rules developed by the MGCB are still up for final approval by the Secretary of State, and the regulator is afraid there won’t be enough time for operators to comply with all of the administrative requirements to hit the 2020 target.
Thus, the projected launch was moved to January 2021, but there’s still a possibility that online poker won’t be offered during the initial launch. Meaning, sports betting and online casino games might come in first before online poker.
Mary Kay Bean, Communication Specialist for MGCB, said the decision to launch online poker along with other internet gaming verticals will largely rely on the “readiness” and willingness of operators to join the initial launch.
Online poker operators still need to have their games assessed by independent testing labs and be approved by the regulator’s own gaming lab before they can be deployed. This process is expected to take longer and be more extensive, considering the game’s peer-to-peer nature, contrary to the other forms of online gaming which are only played against the house.
In Pennsylvania for example, sports betting and online poker launched first, with online poker delayed for a number of months. However, latest developments show Michigan will not need to go through the same length of delay. This means online poker players in Michigan can expect to play the game shortly after the launch of the other gaming verticals.
Michigan Shared Liquidity
Even when online poker is already off the ground, shared liquidity will also not be put into practice just yet, as the MGCB will still need to evaluate the games. The states of Nevada, New Jersey, and Delaware currently have an interstate poker compact between them, allowing their players to play together under one pool and share similar tournaments and cash games. Pennsylvania may also join the shared liquidity agreement, in addition to Michigan.
The Wire Act issue may also put a barrier in the full implementation of Michigan’s shared liquidity as the state will most likely wait for the case to be settled before entering into multi-state deals. So far, things are going in favor of interstate online gaming agreements, and if the final judgment goes this way, states won’t need to worry about legal consequences when they decide to join the existing multi-state internet gaming agreement.