By Steve Norton
CEO, Norton Management

Brandt Iden’s Fight for Legal iGaming in Michigan

My comments:

Michigan's attempt to add casino games and sports betting on the internet seems an over the top gaming effort, like Illinois and Pennsylvania. Michigan already has 23 tribal casinos and 3 commercial casinos in Detroit. Think of the negative impact online gaming and sports betting will have on their revenues and employment if a Michigan resident can bet on his smartphone or computer, at home, work or anywhere.

Representative Brent Iden (R) and Senator Chris Hertel (D), also seem to have a favorable ear from the new Governor, Gretchen Whitmer.

Iden was quoted, indicating that, “This is an issue of fairness, about protecting customers, making sure they are not being taken advantage of, and also helping problems with addiction - you can regulate gambling problems much better on the internet - and having the ability to regulate their habits keeps them safe.” Wouldn't the addition, and convenience, of online gaming increase the number of problem gamblers?

An even bigger issue, for the state to consider, especially with online or internet sports betting, is sports betting generally produced less than 1% in taxes, for each dollar bet (holds on bets made of 5% or 6%, taxed at even 10% or 15%).

Compare this to the Michigan lottery, supporting a very important service, education, where the state keeps over 40% of every dollar wagered. What if the convenience of online sports betting, changes the betting patterns of Michigan residents?

Michigan Attorney General, Dana Nessel, has filed an amicus brief, alongside 11 other states and the District of Columbia, challenging the Department of Justice's interpretation of the Wire Act which would stop the lucrative cross-state lotteries, such as Powerball.

Michigan, with more live casino operations than any state, other than California and Oklahoma, needs to carefully study the bill now under consideration, and understand the negative impacts it will have on tribal casinos, Detroit casinos and most likely your successful state lottery.

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