Online Gambling License in Michigan

The Michigan Gaming Control Board is the regulatory body overseeing legal gambling in land-based and online casinos. The latter comes from the 2019 changes in the law, allowing sports betting and online casino gaming in the state.

The Board consists of five members and an executive director appointed by the Governor of Michigan and confirmed by the Michigan Senate. The control board members receive support from numerous other state agencies, including the Attorney General’s Office, the State Police, and the Department of Technology, Management, and Budget.

The MGCB also works hard to promote responsible gaming practices through its “Don’t Regret the Bet” website and program. In addition to this, the Board offers several forms, resources, and responsible gaming tips and quizzes for affected individuals.

Types of Online Gambling in Michigan Regulated by the MGCB

In Michigan, several types of online gambling are legal and regulated by the state. These include:

Slots Games

Online slot machines must have a Random Number Generator approved by the MGCB. All licensed online casino operators must also conduct regular audits and meet technical standard equivalents like those applied to land-based casinos in Michigan. In addition to this, the Board also oversees software testing of each online operator and reviews monthly reports from the casinos involving the game performances, wagers, and, most importantly – payouts.

Table Games

Table games like blackjack and roulette also have RNGs that must meet the requirements set by the Board. According to the current framework, all table game rules must be visible to the player, and the games must meet the same standards as in-person games. The Board also does regular checks for fairness, transparency, and compliance.

Live Dealer Games

The Board also oversees how live dealer games are streamed and provided to players. According to the current legislature, the games must be streamed from a certified location in real-time. The dealers must be licensed by the Board, and each piece of equipment in the game must pass all inspections conducted by the Board. Again, the quality standards must be on the same level as in physical casinos.

Sports Betting

The MGCB oversees sports betting in the state since it was legalized in December 2019. Licenses can be issued to sports betting regulators that fulfill all criteria, pay the application fee of $50,000, and are associated with either commercial or tribal casinos. All operators can offer only one sports betting platform online, and licenses must be visible on the platforms.

Currently, all 3 commercial casinos (in Detroit) and many tribal casinos offer online sports betting, which can be enjoyed by any player from within the state lines. A regulation requires all operators to use geolocation technology to ensure that bets are only placed from within state lines. The list of allowed bets is quite long, including single-game bets, parlays, over/under, live bets, prop bets, and more.

The licensees must submit regular reports to the Board about the number of wagers, the payouts and the gross revenue. Taxes are based on the gross revenue or the “adjusted gross receipts” (AGR). Commercial casinos must pay an 8.4% tax, which includes a 3.78% city tax for Detroit. Tribal casinos with sports betting operations don’t pay the city tax but still pay the state tax. The tax revenue is paid to the Internet Sports Betting Fund, which supports responsible gambling and other beneficial programs.

Daily Fantasy Sports Betting

The Board’s responsibilities regarding DFS are outlined in the Fantasy Contests Consumer Protection Act. The MGCB regulates all platforms offering these betting options and ensures their fairness and security for players. The licensing fee depends on the size of the operator and ranges between $50,000 to $100,000, and the license needs to be renewed annually.

Players participating in DFS betting must be over 18 (and operators must verify that) and be located within state lines. Due to the definition of DFS, licensees must ensure that the contests are based on skill and not on chance, and they must also be completely transparent about all entry fees, prizes, and contest rules.

Land-Based Gambling

Although Tribal casinos operate under the federal Indian Gaming Regulatory Act and the Tribal-State Class III compacts and are not subject to the Michigan gambling laws, the Board still has some authority over them in overseeing compliance with compact provisions. However, a specific Governor-assigned staff is responsible for this, and the 5-member board is not directly involved.

In addition to tribal casinos, the MGBC licenses and regulates all party-mutuel horse-racing activities. It gives licenses to horse tracks, jockeys, and trainers, monitors the races, approves the race programs, and oversees wager/revenue distribution. In addition, the Board oversees animal welfare in collaboration with other authorities.

Millionaire Party and Charitable Gambling

Millionaire Party events are charitable gambling events regulated and sometimes sponsored by the Michigan Gaming Control Board. The Board licenses these organizers and reviews all financial reports after each event. These events allow licensed nonprofit organizations to host gambling parties and activities like poker, blackjack, roulette, and other card game tournaments and events.

The proceeds from these events go toward the nonprofit’s charitable purposes. The law states that only one event per day can be held at a location, and it must be organized in a licensed venue. The Board lists the types of organizations eligible for organizing these events, including religious, educational, service, and senior citizens organizations.

Online Casinos with an MGCB License

Due to the most recent changes in the legal framework, online casinos can legally operate in Michigan after being approved by the Board. Players over the age of 21 can get access to slots, blackjack, and other casino games from anywhere within the state. However, the casinos must follow strict rules to operate legally.

First, they need to apply for and receive an Internet Gaming License from the Board. The licenses are available to tribal or Detroit’s commercial casinos, and they are allowed to partner with other online platforms. The licensees must undergo a background check on the premises, the platform, the software providers, and all key employees. The geolocation technology that we mentioned for sports betting is also required for all online casinos. Other technical requirements for online casinos include safe and secure payment options, clear game instructions and rules, and more.

The operators must provide all necessary tools for responsible gambling and offer direct resources to help affected individuals. Online casinos pay a variable tax based on the AGR (same as sports betting operators), and the tax revenue is allocated to the Internet Gaming Fund, supporting good causes.

Regulatory Framework of the MGCB

The most important law establishing the MGCB and regulating its main operational responsibilities is the Michigan Gaming Control and Revenue Act, found in the Public Act 69 of 1997. This act also governed the regulation of commercial casinos in Detroit and outlined the taxation and licensing requirements. The main idea and guidelines for operational requirements, fair play, and revenue collection are also included here.

The Lawful Sports Betting Act, the Lawful Internet Gaming Act, and the Fantasy Contests Consumer Protection Act, all three brought up in 2019, regulate online casino gambling, sports betting (including online and mobile), and DFS in Michigan. These acts set up the responsibility of the Board to license, regulate, and oversee the gambling activities of all operators. They also outline the specific requirements for obtaining a license, the means of auditing, and the tax allocation.

Other relevant acts defining the work of the Board are the Millionaire Party Law of 1972, which regulates charitable gambling in the state, and the Horse Racing Law of 1995, which outlines pari-mutuel betting in the state. These acts are in Chapter 432 of the Michigan Compiled Laws (MCL), alongside the relevant statutes and administrative rules.

In terms of Tribal Casinos, although with a very small list of responsibilities, the framework can be found in the Tribal-State Compact under the federal law IGRA.

FAQs about Online Gambling in Michigan