Michigan Close To Legalizing DFS And Online Gaming

The state of Michigan is creating a regulatory framework that would legalize fantasy sports contests within its borders. After years of failed attempts to authorize online gaming, the territory’s lawmakers finally have some reasons to celebrate, as the House intrepidly es a bill last week.

In other words, the statute would not only protect consumers and produce revenue for the state, but also add DFS to the list of contests excluded from the prohibition on gambling. Since the regulation is in direct connection with the Michigan Gaming Control Board, certain fees for licensing and annual renewal would also be imposed to operators.

Bill’s sponsor, republican Brandt Iden, said:

“We know companies like FanDuel and DraftKings currently operate in this space, and these companies have come to us and said, like other states, Michigan should be regulated.”

To enumerate further, licensed daily fantasy sportsbooks will have to cash out around $50,000 for license, whereas additional $20,000 would have to be paid for its renewal. The pricing is consistent with other states, according to Iden, who adds that only “serious actors” would participate; likewise, residents under the age of 18 would be prohibited from playing DFS.

DFS Is Not Sports Betting

Depite the new regulation’s guidelines and pricing, smaller fantasy sports contents (up to 15 participants) would not require a license. Of course, this includes “no more than $10,000 in total entry fees a year” pursuant to the report.

To clarify, the legislation does not treat fantasy sports as traditional gambling or sports wagering. Therefore, the aforementioned representative insists on highlighting the difference:

“It’s a very important the distinction here. This is not sports betting. This is not gambling. This is a game of skill, not a game of chance, and that’s why we’ve set it up differently.”

Sports Betting Legislation Coming In 2019

It has been six months since the House past separate bills (ed by Iden) that allow online gaming and betting on casino products. However, these documents are yet to be reviewed by the Senate, as no licenses for real-time internet betting can be issued prior to this act. Brandt Iden also said that he is developing an all-inclusive sports wagering legislation, but it will not be presented before 2019.

Source:

“Lawmakers OK legislation that would regulate fantasy sports betting”, Beth LeBlanc, detroitnews.com, November 29, 2018.