This Wednesday The State of Michigan made significant progress towards establishing its Gaming and online sports betting platforms by hosting a virtual debate. The purpose of it was to receive comments from the public about the rules and further recommendations. According to the rulemaking process, there will be a 40 days period for the agency to submit the final draft of regulations. When that step is completed, the certificate for adoption has to be issued in 25 days, which leads to Michigan being able to launch the platforms by the end of November.
Call on changing the Government bureaucracy
Separate online gaming and poker license The Michigan Gaming Control Board (MGCB) executive director Richard Kalm said that they appreciate the feedback provided by stakeholders and the public. They hope they’ll set an example on how a board should tailor the regulation process by holding a public hearing on the two sets of rules.
The three-hour hearing covered subjects related to online gambling, sports betting and their prioritisation over another. One opinion and suggestion stated that online gaming launch and legalisation should be a greater priority, compared to in-person betting. Involved parties find that the challenge lies in the government bureaucracy and their processes that need to be more agile and adaptive.
Moreover, the MGCB representative highlighted the licensing process online operators have to pass. There will be a series of licenses waiting to be issued, and it would not only be the operator who is questioned, but also the platform providers. The law says there can be up to two brands under the Lawful Gaming Act-one for poker and one for internet gaming in general. As a reminder, since July this year, online poker and mobile gaming are considered as legal in the state of Michigan, waiting for the official launch in late 2020. Many licensing processes will depend on what operators and platform providers want and how quickly the application is reviewed and approved.
Tennessee approves the first sports betting licenses
Sports betting regulators in Tennessee have issued the first operator licenses before the official market launch in November. FanDuel, DraftKings and BetMGM will expand into the state once wagering goes live. Sports betting in Tennessee will be exclusively available online since the State has no land-based casinos.
The applications were reviewed by the Sports Wagering Committee of the Tennessee Education Lottery (TEL). There will be no cap on how many operators can offer their services – they only must meet the requirements. Operators have been encouraged to apply for licences since the announcement in April.
Licenses are priced at $750.000 and will be up for renewal on an annual basis. The state of Tennessee is the only one in the US right now with a holding requirement. Namely, operators are obliged to have a hold of at least 10%, with possible fines and suspensions for non-compliers. Financial analysts predicted that regulated sports betting in Tennessee would bring an extra $50 million in tax revenue. These funds will go towards helping problem behaviour gambling, as well as supporting local government projects and education.