The state of Michigan has come up with the newest online casino and poker legislation for the players and operators. The law has emerged after five years of the enforcement of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). This act actually restricted all the online gambling sites to carry out any kind of transaction with US financial institutions. It resulted in the closure of the online gaming operations.
Introduction of Lawful Internet Gaming Act
Recently, on the last Friday, Senator Mike Kowall with other four senators introduced Lawful Internet Gaming Act, named as SB 889. This bill has been introduced in order to legalise and monitor the online gambling activities. The motive of the bill is to safeguard the players that place bets on games of chance and skill online. The new act is to protect punters that earn revenue through online gambling.
According to recent reports, the new act does not allow sports betting among other permitted online games. This is simply done to prevent any kind of clashes with the federal Professional and Amateur Sports Protection Act (PASPA) that was enforced in the year 1991.
Highlights of SB 889
According to the new law, around 10 percent of the tax on the total gamin revenue will be charged and a licensing fee of $5 million. In addition to this, the licensing fee will include a non-refundable and upfront fee of $100,000. Whether it is a tribal casino or a state licensed private casino operator, they all can apply for this license by paying the fee. Furthermore, the law declares that the state will be allowed to issue only eight online gambling licenses to the operators.
While talking about the tribes, they will have to surrender their sovereign immunity first and then pay the required taxes and fee. SB 889 states that the vendor license for online gambling will remain valid for five years. However, the law does not mention any qualifications to avail a vendor license. Therefore, it is expected to see interstate and international operators taking the advantage of it.
To add on, the law also makes it clear that the wager of a player who is not physically present in the state will be accepted only if it is consistent with the federal law. The wager must be under the law of jurisdiction irrespective of the location of the player. Moreover, the wager must take place under the multijurisdictional agreement of which a state is a part.
The Bottom Line
It is true that Michigan is only one of those three states, which permitted online lottery sales way back. It has now become one of the two states to allow instant win online games with such a large variety. Therefore, it means that the state is constantly trying to develop in the online gaming world and provide the most exclusive gaming experience to all its players. The officials of Michigan are continuously striving to achieve a safe gaming environment across the nation.