Michigan Gaming Control Board Begins Supplier Applications for iGaming
Online gambling is well on its way in the state of Michigan, though no real timeline has been provided as to when online casino gaming will begin. We do know that the state’s Gaming Control Board announced last week that they are now accepting license applications for suppliers who will offer services within their new industry.
Executive Director of the Board, Richard S. Kalm, stated last week that the board has taken another step towards the launch of their new industry by starting the licensing process. Suppliers are encouraged to file applications soon so that investigations can begin, and provisional licensing approved. This is allowed based on state law.
Suppliers are those who will provide much-needed services to operators such as geolocation, KYC and payment processing. This is the only area where provisional licensing is available. As this process continues, the state will be able to work on a clearer timeline for launch.
US residents were glad to hear that Michigan had approved online gambling legislation, as players have been waiting a long time to see another state join New Jersey, Delaware, Nevada and now Pennsylvania. While the approval of iGaming is great, it doesn’t mean anything until players an actually access online casino sites.
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In Michigan, the issue of launch is based on the industry rules. The state cannot get started with online gambling until rules of operation have been drafted and published. This is a long-running process that started earlier in the year.
The task of creating the rules has gotten a little complicated due to the governor refusing to allow emergency rules for online gambling. The coronavirus has also played a role in the delay. While the process is taking time, it does seem that regulators are close to having a timeline for launch.
According to Kalm last week, the state expects to launch online gaming and online sports betting by early next year. They do hope that this will actually happen sooner though.
Right now, the state has already had five months to move things along, since Governor Gretchen Whitmer signed the online gambling package into law.
Bringing in Funds
With online gambling in operation, Michigan will be able to bring in much-needed funds. The state, like all others in the US, has been hit hard with the coronavirus. Michigan has one of the largest number of cases of the virus and they have casinos that have not been in operation due to a shut down.
This means no revenues coming in from Detroit commercial casinos as well as tribal venues. Without the gambling money, the areas that rely on these funds have seen massive shortages. If online gambling was in play already, the state would have been able to benefit from the cash flow.
Michigan is a large state with 10 million people. It is larger than New Jersey and should be quite successful with their online gambling launch. Hopefully regulators will be able to move forward quickly with the rule-making process so the industry can get stated sooner rather than later.