Michigan senate committee advances online gambling legalisation bill

Michigan Senator Mike Kowall’s online gambling legalisation bill SB203, filed earlier this month (see previous report) has made rapid progress, passing throught the Senate Regulatory Reform Committee and advancing to the Senate for consideration on a vote of 7 to 1.

The bill continues Kowall’s efforts last year, which ran out of time, and has provisions for consumer protection and enforcement against illegal online gambling in the state.

The bill also provides two ways for Michigan tribal interests to participate – if the tribe currently operates an in-state licensed casino, it will have to submit a limited waiver of tribal sovereignty for online gambling; or a tribe can enter into a compact with the state wherein online gambling is considered to be under a separate contract.

During the hearing preceding the vote, the Coalition to Stop Internet Gambling opposed the bill, with spokesman Bill Jackson pushing forward with the usual CSIG line that internet gambling is a danger to families and minors.

Poker Players Alliance director John Pappas cleverly turned Jackson’s arguments against him by commenting to the committee that his opinion illustrated why regulation and licensing is the better route for consumer protection, saying:

“We know a good bill when we see it. We believe this bill is appropriate to protect consumers,” and observing that the longer online gambling is allowed to continue without state control, the more citizens are likely to fall victim to illegal gambling sites with dubious owners and business practices.

“Unfortunately for players, they can get scammed. And they have been scammed. It’s not the fault of the player. It’s the fault of the state for not appropriately authorizing it so that there are safe and regulated options for players to play on,” said Pappas.

“It’s intellectually dishonest to claim that online gambling can’t be regulated when we know it can be regulated.”

Local media reports indicate the general feeling at the hearing was positive.