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Michigan Online Gaming Bill Vetoed
Published: January 1, 2019
For now at least, Michigan will not be the sixth US state to legalise and regulate some form of online gambling. In a move that has disappointed many online gambling enthusiasts Governor Rick Snyder vetoed House Bull 4926 that had sought to legalise intrastate online gambling. The bill had been passed by both units of the state legislature. That the Governor vetoed nearly 40 bills in total is no solace to Michigan’s state commercial and tribal casino operators.
Snyder acknowledged the fact that a great deal of time and effort had been put into the Internet gambling bill. He also was aware that several stakeholders had either expressed support or neutrality towards online gambling. But despite that, he though it fit to veto the bill. He released a letter putting down several reasons justifying his action.
At the outset Governor Snyder thought that it was not correct to sign legislation that will effectively result in more gambling. He pointed out that social problems ordinarily associated with increased gambling behaviour would also increase. He was referring to compulsive gambling issues that in the extreme could result in financial breakdown of the affected player and family. Snyder said that it was reasonable to assume that the state would lose revenue in order to address the increased societal disruptions.
The second reason according to Snyder was that there is not sufficient data to support the introduction of legalised and regulated online gambling. The projected revenues have a fair deal of uncertainty so a decision cannot be based on them. Snyder concluded, “I believe this legislation merits more careful study and comparison with how other states have, or will, authorize online gaming.” The Governor was also unsure of the impact legalised online casino gambling would have on the Michigan Lottery. Citizens might shift their patronage from the lottery to online casino gambling and this could reduce the earnings of the lottery.
The bills that would have regulated Internet gaming in Michigan had been driven by state Representatives Brandt Iden and Klint Kesto. Iden had sponsored another sports gambling-related bill called the "Fantasy Contests Consumer Protection Act" that would have regulated fantasy sports in Michigan. But Snyder returned that bill for approval as well. Snyder's action comes just days before he has given up his office to Gretchen Whitmer on January 1. It is predicted that another attempt at an online gambling bill will occur once the legislation’s new session begins on January 9.
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