Michigan Senator Mike Kowall delivered legislation this week that would authorize online gambling in hawaii.

Kowall’s SB 203 ‘must include, but need not be limited by, poker,’ and, if passed, would permit just Michigan’s commercial casino operators and federally recognized tribes already conducting gaming operations to apply for licenses.

Kowall has previous form right here. A year ago, he introduced a bill that is similar ended up being overwhelmingly approved by the Senate Regulatory Reform Committee before disappearing without a trace.

Kowall in addition has proved himself to be something of an optimist when it comes to evaluating the chance of success of their gambling that is online legislation.

His confidence was misplaced year that is last he would excel to consider a more cautious line this year.

The facts are, there are numerous hurdles along the path to regulation in Michigan.

Hurdles Ahead

Like this past year’s legislation, as an example, Kowall’s current bill is big on interstate liquidity sharing. But Gaming Control Board deputy manager David Murley said at last year’s Senate hearing that this part of the bill ‘raises significant legal and policy questions’ that would ‘need to be very carefully considered.’

This year’s bill has scrapped language that appeared to embrace future international liquidity sharing, though, which may ease the headache that is legislative.

SB 203 would permit compacts that are interstate other gambling-friendly jurisdictions, provided ‘the gaming under the agreement is carried out only in the United States,’ the bill states.

But Murley has also suggested that the bill might break the state constitution which calls for gambling expansion to be decided by public ballot; not a hurdle that is insurmountable considering that the state has already voted in favor of an online lottery, however a referendum would likely wait issues.

The Tribal Concern

The thorniest problem by far, though, are going to be the attempt to marry commercial and gaming that is tribal a new framework of regulation.

For the tribes to participate legally in the market they’ve to waive their immunity that is sovereign Kowall’s bill, because the Indian Gaming Regulation Act bars states from recharging the tribes fees or taxes for gaming, beyond regulation costs.

That’s unlikely to be a palatable proposition to the tribes and they may well turn against the bill and claim it violates their gaming compacts, which may trigger them withholding rev-share payments to the state.

Having the tribes up to speed is just a crucial but necessity that is complicated the prosperity of this legislation, but, as it stands, tribal operators are said to be ‘split’ on online gambling.

Should the legislature locate a method to iron out all these factors, the bill would tax operators at an acceptable 10 percent of gross video gaming revenues. The provision that is previous required a $5 million deposit to be credited against future tax obligations has been scrapped in 2010.

Instead, license applications will cost $100,000, while successful applicants will pay a further $200,000 when the license is released, plus $100k per afterwards year.