Michigan online gambling legislation faces uphill slog

Michigan legislators are lining up for another run at authorizing online gambling within state borders in 2017, but their path is anything but clear.

Wednesday saw state Sen. Mike Kowall and five of his colleagues introduce SB 203, a followup to the online gambling bill Kowall (pictured) introduced last April that ultimately died on the vine. SB 203 seeks to authorize internet games that “must include, but need not be limited to, poker,” while prohibiting sports betting.

Kowall’s latest effort is largely similar to last year’s effort. Only the state’s commercial casino operators and federally recognized tribes already conducting gaming operations in the state are eligible to apply for online gambling licenses.

Online gambling revenue will be taxed at 10% but this year’s version has scrapped the upfront $5m deposit to be credited against future tax obligations. The bill allows for the possibility of interstate compacts with other gambling-friendly jurisdictions, provided “the gaming under the agreement is conducted only in the United States.”