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Michigan House approves online gambling bill

Brandt Iden, R-Portage, would establish a Division of Internet Gaming within the existing Michigan Gaming Control Board. The new division would issue internet gaming licenses, allowing casinos to receive wagers online – including sports bets, if the board legalizes sports betting statewide in the wake of a recent Supreme Court ruling . All online wagers would be made through currently-existing land-based casinos licensed by the new division, including any tribal casino that works with the state to reflect the new technology. Websites that accept wagers would have to include measures to ensure that participants are at least 21 years old. “People in Michigan are already gambling over the internet, but they are doing so at risky and illegal websites,” Rep. Iden said. “The Michigan websites will have strict state oversight, unlike the illegal and unregulated sites our resident use now, at great risk to their finances and personal information.” Casinos would have to pay an application fee of $100,000 for an internet gaming license. If approved, they would pay $200,000 for the initial license, and an additional $100,000 each year after that. License holders would also be subject to an 8 percent tax on gross gaming revenues. Five percent of the tax revenue would be allocated for schools, five percent for the state transportation fund, and another fifty-five percent for the city in which the casino is located, to be used for hiring street patrol officers, downtown economic development programs, public safety and anti-gang programs, road repairs, and other programs “that are designed to contribute to the improvement of the quality of life in that city.” The remaining thirty-five percent of the tax revenue would go to a new Internet Gaming Fund for regulating and enforcing the new legislation. The fund would also apportion a million dollars to help people struggling with gambling addiction.

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He said the machines have allowed the post to stay open. Graham Milldrum photo Video gambling has generated $4.82 billion in revenue in Illinois since it started in Illinois in 2012, with 35 percent going to the hosting organization, which includes local fraternal organizations. "We were holding raffle after raffle just to keep afloat," said Bill Copple, the finance manager for Effingham American Legion Post 120. Then the post arranged for J&J Ventures to install five video gambling machines. Since 2012, the machines have brought in $600,277.70, with $210,097.20 going to the post. The influx of money has allowed them to continue operation and remain active in their various social projects, said Post Commander David Mahon. Veterans organizations in particular have suffered from low enrollment as World War II and Vietnam veterans die out, said Mahon. Younger veterans do not seem as interested in the clubs, he added. This money allows the post to continue to support its baseball programs, state events and other local organizations. "The Video Gaming Act authorizes the installation of up to five licensed video gaming terminals (VGTs) in licensed establishments where liquor is served for consumption on the premises, as well as in licensed fraternal establishments, licensed veterans establishments and licensed truck stops.

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