The Michigan Gaming News Letter

BetMGM Becomes Second Provider to Launch Online Poker in Michigan

BetMGM announced the launch of its online poker platform, BetMGM Poker, in Michigan, according to a press release. Michigan is the second state to launch the BetMGM Poker platform after New Jersey. Customers will be able to access benefits tied to MGM Grand Detroit and MGM Resorts through the new platform.

“The launch of BetMGM Poker in Michigan fully rounds out our premier gaming portfolio in the state,” said Adam Greenblatt, CEO of BetMGM. “BetMGM’s sports betting and casino offerings have been met with incredible early success in Michigan and we’re thrilled to provide players with another exciting gaming option.”

The BetMGM Poker app will allow Michigan customers to play in poker rooms with players statewide. The BetMGM Poker app includes single account integration with BetMGM’s internet gaming and sports betting apps, allowing the player to use one wallet to play on all three platforms. BetMGM’s internet gaming and sports betting offerings launched in Michigan in January.

“The demand for online poker in Michigan was made clear by players across the state,” said Ray Stefanelli, Director of Poker of BetMGM. “BetMGM Poker is proud to offer them a seat at our tables and we’re confident that BetMGM Michigan customers will enjoy an engaging, reliable and fun poker experience.”

 

iGamingPlayer.com, a publication that presents news and information about legal online gambling in North America, announced that it was granted  a vendor registration as an affiliate marketer for internet gaming, sports betting, and poker sites by the Michigan Gaming Control Board (“MGCB”).

“Michigan iGaming sites are perfect partners for iGamingPlayer.com,” said Becky Kingman-Gros, President and COO of iGamingPlayer.com, in a press release. “We can deliver quality, profitable players to sites in a state where the competition is rapidly ramping up.”

iGamingPlayer.com produces content to help customers play smarter and find the best odds.

“Our stable of expert writers understand how iGaming works, whether it’s sports betting, casino games, lottery or poker,” said Ms. Kingman-Gros. “We already have ongoing relationships with most of the now legal iGaming sites in Michigan, and we’ll leverage those relationships for the benefit of our new members.”

iGamingPlayer.com is licensed and operates in several other states, including New Jersey, West Virginia, Indiana, Iowa, Colorado, Illinois, Virginia, and Pennsylvania. The site has affiliate marketing programs with most of the companies which operate legal gaming in the United States.

 

MotorCity Casino Hotel announced the promotion of John Policicchio from Senior Vice President of Marketing to General Manager in a press release. Mr. Policicchio has been with MotorCity for over a decade, and has played a significant role in developing and implementing initiatives to enhance the guest experience. As General Manager, Mr. Policicchio will oversee casino and hotel operations.

“John has helped create unique and exciting offers and experiences for our MotorCity Casino guests,” said Bruce Dall, President of MotorCity Casino Hotel. “With John’s background, talent and enthusiasm, and with his ability to develop strong business strategies, we will continue to innovate and provide our guests with the very best in high-energy gaming, dining and hospitality.”

“This is an exciting time in the casino industry,” said Mr. Policicchio. “Thanks to the hard work and dedication of our world-class employees, we have a very bright future at MotorCity Casino Hotel. I am grateful to have been a part of this team for the past 11 years and look forward to continuing to deliver best in class experiences to our guests.”

Mr. Policicchio is a metro-Detroit-area native, and is a graduate of the University of Michigan with a Bachelor of Science degree in Mathematics.

 

FireKeepers Casino Hotel was recently named to Forbes’ annual list of America’s Best Mid-Size Employers 2021, according to a press release. The award is presented by Forbes and Statistica Inc., who surveyed 50,000 Americans working for companies with at least 1,000 employees to compile the list. FireKeepers ranked 63rd out of 500 large and 500 midsize employers, and is the highest ranked casino. The full list of recognized employers can be found here.

“This acknowledgement recognizes FireKeepers’ focus on creating and maintaining a great work culture for our Team Members,” said Frank Tecumseh, FireKeepers VP of Human Resources. “Our vision is to be the employer of choice, not only in Michigan, but also throughout the gaming industry.”

FireKeepers employs over 1,800 team members, has paid over $700 million in salaries and benefits since its opening in 2009, and provides various bonuses and incentives to its employees.

The Michigan Gaming News Letter

Internet Gaming and Sports Betting Operators Report $89.2 Million in February Gross Receipts

According to a press release, Michigan internet gaming and sports betting operators reported $89.2 million in gross receipts for February 2021, the first full month of operation after launch on January 22. Twelve operators were authorized for internet gaming or internet sports betting (or both) during the month of February.

In total, internet gaming gross receipts were $79.7 million. The full report of internet gaming revenue broken down by operator may be found here. Internet sports betting gross receipts were $9.5 million, with a total handle of $301.9 million. The revenue report of internet sports betting broken down by operator may be found here.

“Michigan residents and visitors continued to show strong interest in internet gaming and sports betting during a snowy and cold February,” said Michigan Gaming Control Board (“MGCB”) Executive Director Rick Kalm. “The internet gaming taxes more than tripled, but that’s what we expected with a full month of gaming. This means more funding for the City of Detroit, K-12 education, economic development and tribal communities.”

The operators paid a total of $14.1 million in taxes and payments to the State of Michigan during February, with internet gaming contributing $14 million and internet sports betting contributing $142,240.

For internet gaming, the State of Michigan receives 70% of the total tax from commercial operators and 80% of the total payment from tribal operators. The tax and payment rate ranges from 20% to 28% based on annual adjusted gross receipts. For internet sports betting, commercial operators pay 70% of the 8.4% tax rate to the State of Michigan and 30% to the City of Detroit. Tribal operators pay an 8.4% tax on adjusted gross receipts to the State of Michigan.

The three Detroit casinos – MotorCity Casino, MGM Grand Detroit, and Greektown Casino – reported paying wagering taxes and municipal services fees of $4,394,176 to the City of Detroit during February:

  • Internet gaming taxes and fees: $4,303,875
  • Internet sports betting taxes and fees: $90,301

Tribal operators reported making total payments of $1,336,633 to the tribes’ governing bodies.

A revenue distribution table may be found here.

 

The Michigan Gaming Control Board (“MGCB”) is encouraging Michigan citizens to become aware of the self-exclusion options available to gamblers during the month of March, which is designated as Problem Gambling Awareness Month by the National Council on Problem Gambling (“NCPG”). The Michigan Gaming Newsletter highlighted the efforts of industry associations and Michigan operators in Volume 27, Issue 9.

“Because online gambling is new to Michigan, we’re seeing heavy marketing and lots of excitement,” said MGCB Executive Director Rick Kalm in a press release. “There are many online gambling opportunities, and I hope Michigan residents are being careful about their choices and know their options if gambling is or becomes a problem for them.”

Responsible gaming tools available on every authorized internet gaming and sports betting platform in Michigan include:

  • Self-imposed gambling limits including deposits, wagers, and time-based limitations, which can be changed only with 24 hours’ notice
  • Signup options to prohibit establishing an account by visiting certain or all providers’ sites
  • Signup options to exclude oneself from internet gaming and/or sports betting by visiting certain or all providers’ sites
  • Notification on how to apply for the Michigan Gaming Control Board’s Responsible Gaming Database to prohibit establishing any online gaming or sports betting accounts or participating in online gaming and/or sports betting with all providers authorized in Michigan for one year or five years
  • Notification about the Michigan Department of Health and Human Services (“MDHHS”) Gambling Disorder Helpline, 800-270-7117
  • Notification about problem gambling resources on the MGCB website

 

The Michigan Gaming Control Board (“MGCB”) will hold a virtual regular public meeting on Tuesday, March 23, 2021. The meeting will begin at 9:30 AM and will be accessible via Microsoft Teams.

March’s meeting will consider recommendations for occupational license applications, suitability of key persons, and acknowledgements of violations. The meeting will also consider Executive Director Rick Kalm’s recommendations regarding pending supplier license and supplier license renewal requests. The full agenda for the March meeting may be found here.

The meeting is virtually open to the public, and comments from the public are welcomed and encouraged during the public comment portion of the meeting.

The meeting will be accessible to the public on Microsoft Teams at this link.

 

FireKeepers Casino Hotel announced Michael Hamilton as the new Vice President of Food & Beverage in a press release earlier this week. Mr. Hamilton began his duties at FireKeepers on February 25, and is responsible for quality assurance of all food and beverage outlets.

“We are excited to bring Mike into the FireKeepers leadership team,” said Kathy George, FireKeepers CEO. “Mike will bring a fresh perspective to our already outstanding team.”

Mr. Hamilton brings more than 37 years of experience in the hospitality industry, including formerly serving as the Director of Operations for HMS Host at the Cincinnati/Kentucky International Airport, where he oversaw 19 different food and beverage outlets. Additionally, Mr. Hamilton worked previously as the General Manager of Paragon Casino Resort, and oversaw food and beverage, security, and construction at Mohegan Sun. Mr. Hamilton is a member of the Mohegan Tribe and has a degree from the Culinary Institute of America and a certification from the University of Nevada in Casino Management.

“I’m very excited and happy to join FireKeepers,” said Mr. Hamilton. “It’s a beautiful property with an amazing team, and I’m looking forward to building upon the success and greatness that has already been achieved.”

The Michigan Gaming News Letter

Industry Support for Problem Gambling Awareness Month

This March marks the nineteenth year of Problem Gambling Awareness Month (“PGAM”), a campaign started by the National Council on Problem Gambling (“NCPG”) to raise awareness for those suffering from problem gambling. National industry associations and Michigan operators have joined the cause this year with various initiatives and commitments to raising awareness for problem gambling.

The NCPG explained in a press release that Problem Gambling Awareness Month is intended to achieve two goals: 1) increase public awareness of problem gambling; and 2) encourage healthcare providers to screen clients for gambling problems. The NCPG has created materials and graphics for organizations to use in their problem gambling efforts this month in its PGAM Toolkit.

“March Madness is a time of year when we see an increase in gambling and more demand for our services,” said Keith Whyte, Executive Director of NCPG. “Too many people still don’t recognize they are exhibiting signs of this addictive behavior and are unaware of the help that is available to them.”

The American Gaming Association (“AGA”) and FanDuel announced an initiative this week to promote responsible sports betting through the AGA’s campaign, “Have A Game Plan. Bet Responsibly.” FanDuel recently launched internet gaming and sports betting in Michigan with MotorCity Casino. Through the initiative, FanDuel will “work with its league, team and media partners to grow the campaign across television, radio, digital and in-venue media.”

“As the mobile gaming industry leader in the U.S., we believe promoting responsible gaming behaviors is a core tenet of growing our business and the industry as a whole,” said Matt King, CEO of FanDuel Group. “We are not only going to commit substantial FanDuel resources to promote Have a Game Plan but we intend to build a consortium of partners throughout the sports and gaming business to scale this initiative and we encourage other operators to join us.”

MGM Resorts and BetMGM also announced a commitment to responsible gaming in a press release earlier this week by promoting the NCPG’s Problem Gambling Awareness Month and providing players with tools to make “responsible, informed decisions while playing.” BetMGM and MGM Grand Detroit launched internet gaming and sports betting in Michigan in January. BetMGM and MGM Resorts employees will participate in a weekly educational series to help inform them on problem gambling prevention.

“We’re committed to providing BetMGM employees with the responsible gambling tools, information, and empowerment they need to ensure the highest level of customer service and care possible,” said Richard Taylor, Responsible Gambling Program Manager at BetMGM. “Throughout the month they’ll hear from experts about the nature of problem gambling, the importance of research and policy, and the role they can play in preventing problem gambling.”

The Pokagon Band of Potawatomi and Four Winds Casinos are partnering with the NCPG to promote Problem Gambling Awareness Month as well. All Four Winds Casino locations will display brochures with signs of problem gambling and toll-free problem gambling helplines and employees will complete training programs, according to a press release.

“The Pokagon Gaming Authority and Four Winds Casinos have been, and will continue to be, fully committed to promoting responsible gaming at all of our locations in Michigan and Indiana, as well as our newly launched online casino and sportsbook in Michigan,” said Frank Freedman, COO of Four Winds Casinos. “Our employees complete mandatory training programs to ensure compliance with compulsive gambling regulatory requirements. The training focuses on explaining the gambling disorder, recognition of behaviors, and how to provide resources to our guests.”

DETROIT CASINOS REPORT $86.38 MILLION IN FEBRUARY REVENUE

The three Detroit casinos – MGM Grand Detroit, MotorCity Casino, and Greektown Casino – reported $86.38 million in February monthly aggregate revenue while operating at limited capacity, according to a press release. Table games and slots generated $86.46 million in revenue, while retail sports betting had a loss of $77,627.

The February market shares were:

  • MGM Grand Detroit – 40%
  • MotorCity Casino – 36%
  • Greektown Casino – 24%

February table games and slots revenue dropped 29% compared with February 2020. Monthly revenue fell 0.4% from January 2021.

Year-over-year revenue declined 34.6% to $34.43 million at MGM Grand Detroit, 22.9% to $31.24 million at MotorCity Casino, and 27.3% to $20.79 million at Greektown Casino.

The three casinos paid $7 million in gaming taxes to the State of Michigan during February, compared with $9.9 million during February 2020. The casinos reported submitting $10.3 million in wagering taxes and development agreement payments to the City of Detroit during February.

Detroit casinos reported a total retail sports betting handle of $23,711,983. Greektown Casino reported $114,814 in retail sports betting qualified adjusted gross receipts for February, while MGM Grand Detroit reported a $8,761 loss, and MotorCity Casino reported a $183,680 loss. Qualified adjusted gross receipts are gross sports betting receipts minus the monetary value of free play incentives provided to and wagered by bettors.

The casinos paid $4,340 in taxes to the State of Michigan and $5,304 to the City of Detroit on retail sports betting during February.

Fantasy contest operators reported total adjusted revenues of $2.2 million and paid $186,699 in taxes during January 2021.

The Michigan Gaming News Letter

Detroit Casinos Authorized to Increase Capacity to 30%

The Michigan Department of Health and Human Services (“MDHHS”) announced changes to its Gatherings and Face Mask Order on Tuesday, which include an increase in Detroit casino capacity restrictions to 30%.

The Detroit casinos were permitted to begin operations at 30% capacity on Friday, March 5, 2021, at 12:01 a.m. Michigan’s tribal casinos are operated by sovereign tribal nations and, therefore, are subject to each tribe’s capacity restrictions.

“As we continue our vaccine rollout and make steady progress against the virus, we are taking additional incremental steps to re-engage to ensure we are protecting our families and frontline workers and saving lives,” said Governor Gretchen Whitmer in a press release.

Michigan Gaming Control Board (“MGCB”) Executive Director Rick Kalm issued an Order implementing MDHHS Order on March 4, which outlines the minimum guidelines the Detroit casinos must follow for continued operations at increased capacity.

 

With the recent successful launch of internet gaming and sports betting, The Michigan Gaming Newsletter recently sat down and interviewed Michigan Gaming Control Board (“MGCB”) Executive Director Rick Kalm on the process the MGCB used to approach the rollout and to give some information about how the MGCB successfully navigated the task of licensing the operators, platform providers, and the over 200 vendors and suppliers needed to authorize the launch.

The Michigan Gaming Newsletter (“TMGN”): The MGCB staff that worked on the iGaming roll out included how many individuals? Throughout the process, there have been a number of key personnel that have led up certain areas. Do you have any comments as to how the agency approached the organization of the roll out?

Mr. Kalm: “Nearly all of the agency’s operating units were involved in the internet gaming and sports betting rollout.

The MGCB created a committee led by Deputy Director Kurt Steinkamp and Deputy Director Dave Murley to oversee launch-related issues, and committee members were assigned tasks related to their expertise. For example, Audit Manager Jason Wiard and Assistant Manager Steve Meyer and their staff handled review of internal controls, Gaming Lab Manager Carla Schulte and her staff worked on gaming submissions, and iGaming Manager David Hicks and his staff oversaw platform and remote gaming system requirement compliance and submissions. Charlie Negin of Indian Gaming was the lead on rulemaking and continues to advise colleagues on how they apply to various situations.

Enterprise Licensing managers John Sullivan and Sarah Rye and their staffs ensured operators, platform providers and suppliers met licensing requirements, and Rye and her team also worked with vendors on registration. Employee Licensing’s Carrie Dodt and her staff handled employee licensing requirements. Investigations were completed by Manager Dan Minzey and his team. The committee met at least weekly for months in advance and convened more frequently as needed before the Jan. 22 launch.”

TMGN: How many vendors and suppliers did the agency need to investigate as part of the process? Related to the agency’s operating history, how does the licensing expansion compare to other times within the agency history? Did the process go according to plan? Are there other points you may want to highlight?

Mr. Kalm: “The agency’s Investigations section started investigations for 15 internet gaming and internet sports betting operators and 59 internet gaming or internet sports betting suppliers during calendar year 2020. Vendors are registered, not licensed, and do not require background investigations although tax payment and other checks are performed.  The process probably was very similar to the experiences when the agency began initial regulatory reviews and licensing for the Detroit casinos more than 20 years ago. This time, the MGCB had the advantage of many years of regulatory experience to guide staff and the ability to obtain and use information from other states’ gaming regulators. When draft rules became available last spring, MGCB staff could form an approach to vetting internet gaming and sports betting applicants.  The MGCB began to accept online gaming supplier license application forms in May and operator and vendor applications in July. This meant the agency had several months to work with applicants on requirements and conduct required investigations. By Dec. 10, the MGCB had approved 15 platform providers’ provisional licenses. The rules had been adopted Dec. 2 so work could begin on the final phase of licensing in preparation for launch.

The agency had longstanding business relationships with the Detroit casinos’ operators. Although the MGCB has not licensed and regulated tribal gaming previously, we do have extensive experience working with the tribes and their casinos in our Tribal-State Class III Gaming Compacts oversight role. Tribal representatives and their platform providers have been very helpful throughout this process.”

TMGN: Michigan’s lab has worked with independent testing labs (ITLs) to complete the process and also has its own role in the process.  Can you comment on this process, on BMM and GLI and the Michigan lab and their respective roles?

Mr. Kalm: “The ITLs really helped us manage the submissions volume efficiently. Our Gaming Lab staff had confidence in the ITLs as they have worked together on gaming device testing for the Detroit casinos since 2018.  The agency reviewed and approved the ITLs’ testing procedures before authorizing them to test internet gaming and sports betting products. This ensures they conduct testing that’s consistent with the acts, rules and prescribed technical standards.  It’s important to note the ITLs test platforms, games and other systems and issue certification letters, but the MGCB has approval authority. The ITL certification letter is among many items the MGCB reviews when determining whether to approve a platform, game or system for use in Michigan.”

TMGN: Michigan is joining other states that have launched iGaming, but Michigan is the only state with the mix of commercial and Native American operators. Can you share any thoughts as to how the process has played out? From what it appears, the State and the tribal operators have had a great partnership in launching the new iGaming industry.

Mr. Kalm: “Michigan created a model for the U.S. gaming industry by establishing a path for the tribes to obtain licenses for statewide internet gaming and sports betting.  The agency established a good working relationship with the tribes through its Indian gaming oversight function, which strengthened as we began to work with them in a regulatory capacity.  We also worked closely with the tribes during the rulemaking process. Their feedback was key to ensuring an efficient, successful launch.

The MGCB looks forward to a continued strong relationship with the tribes as we begin regulating internet gaming and sports betting.”

TMGN: Now that internet gaming and sports betting has been live for over a month, can you share any thoughts as to how the MGCB and key players in the State have continued to work together to keep things running smoothly? How have things gone according to plan, or how have they not gone according to plan?

Mr. Kalm: “The launch of internet gaming and sports betting got off to a good start, and since Jan. 22 we’ve added two more tribal operators (Little Traverse Bay Bands of Odawa Indians and the Pokagon Band of Potawatomi Indians’ Four Winds casinos) and authorized Greektown Casino’s internet gaming launch. More recently, we have given guidance to improve platform providers’ understanding of patron dispute process requirements for their sites and use of the agency’s logo in advertising, which is prohibited. I’m very grateful to everyone who contributed to a smooth launch for Michigan just 13 months after the laws authorizing the gaming were signed.”

TMGN: The revenue report for the first 10 days of operation in January looks promising for the State of Michigan, the City of Detroit, and tribal governments. Do you have any comments you would like to share on how internet gaming and sports betting will be beneficial for communities throughout the State?

Mr. Kalm: “COVID-19 health concerns meant both commercial and tribal casinos were closed for part of 2020. Of course, this impacted gaming tax revenue for the state, particularly K-12 education, and the City of Detroit as well as revenue the tribes share with the Michigan Strategic Fund and use to provide government services for their communities. The new forms of gaming provide another revenue source for all of these entities and for K-12 education in Michigan.  In the long run, internet gaming likely will provide the largest source of tax revenue of the new forms of gaming because the tax and payment rates are so much higher — ranging from 20-28 percent versus 8.4 percent for internet sports betting.”

TMGN: As the launch unfolds any other comments you feel you would like to share with the Gaming industry, Michigan officials or the public at large?

Mr. Kalm: “Launch is the first step in an ever-evolving market. I’ve seen published reports on the popularity of internet poker in Michigan, and the sports betting results for February and March should be interesting because of the Super Bowl and March Madness. Taxes and payments were lowered by free play and other promotions in January, and this probably will continue for the near term as providers use incentives to attract customers.  Aside from the impending launches, the agency will work on live studio games requirements, cashiering options and the multi-state poker agreement in the coming months. Our sportsbook catalog has grown, and the MGCB continues to review providers’ suggestions for new leagues, games and wagers.

I’d like to thank my staff and all of the people involved in bringing legal, regulated internet gaming and sports betting to Michigan. I hope the public will enjoy the games and Michigan and tribal communities’ citizens will benefit from the revenue.

Finally, March is Problem Gambling Awareness month. I ask anyone who wants to control their gaming or needs help with gaming addiction to use the temporary or permanent self-exclusion tools on the platform providers’ sites, apply for inclusion in the MGCB’s responsible gaming database or contact counseling options such as the Michigan Department of Health and Human Services gambling helpline, 800-270-7117.”

TMGN: Thank you for speaking with us and congratulations to you and your staff on implementing what appears to be a very successful launch.

 

International Masters of Gaming Law (“IMGL”) is hosting its 2021 Spring Conference virtually on March 8-12, 2021. The conference was moved from Athens, Greece, to a virtual format due to COVID-19 health concerns. Each conference day will have two sessions, featuring different topics and thoughts from industry leaders.

The sessions will feature the following:

Monday, March 8

Session 1: Brick and Mortar Gaming in a Post-COVID World

Moderator: Sean McGuinness – Attorney, Butler Snow

Speakers:

  • Michael Lipton – Senior Partner, Dickinson Wright
  • Andrew Cotton – Director of Betting and Gaming, Ince Gordon Dadds LLP
  • Daron Dorsey – SVP, General Counsel & Group Compliance Officer, Ainsworth Game Technology
  • Ellen Whittemore – EVP, Wynn Resorts

Session 2: Sports Betting Updates

Moderator: Marie Jones – Attorney, Fox Rothschild

Speakers:

  • David Waddell – President, Regulatory Management Counselors, P.C.
  • Eric Frank – EDF Compliance, LLC
  • R. Douglas Sherman – Chief Counsel, Pennsylvania Gaming Control Board
  • Gina Smith – Deputy Director of Gaming Compliance, Virginia Lottery

Tuesday, March 9

Session 3: Tribal Sports Betting and Compact Provisions

Moderator: Steve Light – Co-Director, Institute for the Study of Tribal Gaming Law & Policy, University of North Dakota

Speakers:

  • Kathryn Rand – Professor, University of North Dakota School of Law
  • Kevin Quigley – Indian Affairs & Gaming Business Counsel, Foley & Quigley PLC
  • Niki Metzgar-Schall – Corporate Counsel, Sportradar
  • Heidi McNeill Staudenmaier – Partner, Snell & Wilmer

Session 4: Igaming/Lottery in North America

Moderator: Robert Fontaine – Deputy General Counsel for Gaming, Virginia Lottery

Speakers:

  • Rob Wesley – Director of Digital, Virginia Lottery
  • Riva Richard – General Counsel, Pollard Banknote
  • Scott Bowen – Vice President of Government Relations, NeoPollard Interactive LLC

Wednesday, March 10

Session 5: Australasia 2021: Way Forward Post COVID

Moderator: Andrew W. Scott – Vice Chairman and CEO, Inside Asian Gaming

Speakers:

  • Jamie Nettleton – Partner, Addisons
  • Kok Keng Lau – Head of Intellectual Property/Sports and Gaming, Rajah & Tann Singapore LLP
  • Marie Antonette B. Quiogue – Partner, Romulo Law Offices
  • Hitoshi Ishihara – Partner, Anderson Mori & Tomotsune

Session 6: Rise of E-Sports in Australasia – Focus on the Current State of the Industry

Moderator: Alex Norman – Counsel, Bird & Bird

Speakers:

  • Ranjana Adhikari – Co-Head of the Media Entertainment & Gaming Practice Groups, Nishith Desai Associates
  • Sean Zhang – CEO and Cofounder, Talon Esports
  • Michael Patent – Founder, Culture Group
  • Joseph Wadakethalakal – Corporate Development, IR, and Strategic Partnerships, Mobile Premier League

Thursday, March 11

Session 7: UK – Review of the Gambling Act 2005: A Sign of Things to Come for the Global Gaming Industry?

Moderator: Stephen Ketteley, Partner, Wiggin LLP

Speakers:

  • Tamsin Blow – Partner, CMS Law
  • John Hagan – Managing Partner, Harris Hagan
  • Ian Ince – Head of Regulation and Compliance, Playtech
  • Simon Bernholt – Chief Regulatory & Legal Officer, Flutter UK & Ireland

Session 8: Mergers/Acquisitions and the Competition Angle

Moderator: Diane Mullenex – Partner, Pinsent Masons

Speakers:

  • Adam Rivers – Director, KPMG LLP
  • Hussein Chahine – Founder & CEO, Stratasphere
  • David McLeish – Partner, Wiggin LLP

Friday, March 12

Session 9: The Impact of the Ongoing Global Pandemic in Regard to the EU/UK Regulated Markets

Moderator: Quirino Mancini – Partner, Tonucci & Partners

Speakers:

  • Ekaterina Hartmann – Director of Legal and Regulatory Affairs, European Gaming and Betting Association
  • James Scicluna – Co-Managing Partner, WH Partners
  • Marco Castaldo – CEO of Microgame SpA and Director of ASTRO for Online Gaming and Betting
  • Niki Stephens – Partner, Mishcon de Reya

Session 10: Emerging Markets in the Netherlands, Germany and Others Gradually Legalizing Online Gambling

Moderator: Frank Tolboom – Partner, Kalff Katz & Franssen

Speakers:

  • Justin Franssen – Partner, Kalff Katz & Franssen
  • Matthias Spitz – Senior Partner, MELCHERS Law Firm
  • Frieder Backu – Partner, Witzel Erb Backu & Partner Rechtsanwälte
  • Peter-Paul de Goeij – Managing Director, NOGA

To read more about each session and to view the conference schedule in full, please click here. To register for the IMGL 2021 Spring Conference, please click here.

 

The National Council of Legislators from Gaming States (“NCLGS”) is hosting a webinar entitled “Digital Gaming Comes into Focus,” featuring Michigan Gaming Control Board (“MGCB”) Executive Director Rick Kalm. The webinar will be held on March 18 at 1:00 PM EST.

The webinar will address how the COVID-19 pandemic, the United States Supreme Court, state budget deficits, and new technologies have emerged as forces that have upended traditional gaming, bringing in new participants, players, and rules that will create challenges and opportunities for the industry. An open Q&A will follow the presentations.

A panel of industry experts will be led in discussion by moderator Jon Ford, Indiana State Senator and NCLGS Board Member. The expert panel will include:

  • Howard Glaser – Global Head of Government Affairs and Special Initiatives at Scientific Games
  • Enrico Drago – SVP, PlayDigital and Sports at IGT
  • Rick Kalm – Executive Director, MGCB
  • Juliann Baretto – CFO at Spectrum Gaming Group, Q&A Host

To register for the webinar, please click here.

 

Frank Kennedy, SVP of Casino Operations at Four Winds Casinos, is joining Kambi’s Festival of Sportsbook digital event on March 18, 2021. The Festival will run from March 15-19, and will feature insights from industry experts on key topics impacting the global sports betting landscape.

Mr. Kennedy is featured on a session entitled “Maximize the Power of Your Brand: How your business can use the strength and trust in its brand to maximise the sports betting opportunity.” The panel will also include Matt Hosman, Kambi US Sales Director, and Victor Rocha, NIGA Conference Chair. To register for the session, please click here.

“With many states in the process of regulating and others still to come, US sports betting is just getting started,” said Cecilia Wachtmeister, Kambi’s EVP of Business and Group Functions, in a press release. “Meanwhile, technology will of course play a crucial role in how the US market and others around the world evolve, so it was only right we gave these topics such prominence in the agenda.”

For more information on Kambi’s Festival of Sportsbook and to register for all of the sessions, please click here.

 

The Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (“Gun Lake Tribe”) has partnered with the Michigan Department of Transportation (“MDOT”) to fund a $26 million upgrade to a highway interchange near Gun Lake Casino in Wayland, Michigan. Gun Lake Tribe is contributing $22 million to the project, while MDOT will fund the remaining $4 million of the project.

The project will rebuild the US-131/M-179 interchange and will resurface US-131 from 120th Avenue to 133rd Avenue in Allegan County. Construction on the project began March 1 and will take two years to complete, opening to traffic in November 2022.

“There’s bridges around us that had been replaced, you know, Martin, Dorr, Wayland . . . not this one yet,” John Shagonaby, CEO of the Gun Lake Tribal Gaming Authority, told FOX 17 in a news article. “We want everybody to be safe when they come to the reservation and enjoy good times at a casino or a better trip on the way home; you don’t have to wait for traffic.”

“Rebuilding and improving this interchange is vital for this growing area and it helps meet the vision the Gun Lake Tribe has for their casino, their customers and their stakeholders,” said MDOT Grand Region Engineer Erick Kind in a press release. “The generosity from the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians of Michigan is unprecedented and gives us a great opportunity to rebuild this bridge and interchange for all of Michigan.”

“We really wanted to find a great partner in M-DOT and move this up, and we’re putting our money where our mouth is,” said Mr. Shagonaby.

The Michigan Gaming News Letter

Internet Gaming and Sports Betting Operators Report $42.7 Million in January Gross Receipts

Internet gaming and internet sports betting operators reported $42.7 million in gross receipts for the first ten days of operation following the initial launch from January 22 to January 31, according to a press release. Internet gaming receipts were $29.4 million, while internet sports betting receipts were $13.3 million with a total reported handle of $115.2 million.

“Internet gaming operators are off to a good start in Michigan,” said Rick Kalm, Executive Director of the Michigan Gaming Control Board (“MGCB”). “The taxes and payments from online gaming will provide funding for K-12 students, the city of Detroit and Michigan tribal communities.”

In total, internet gaming and sports betting operators reported $4.4 million in taxes and payments to the State of Michigan during January. Internet gaming operators paid $4.3 million in taxes and payments, while internet sports betting operators paid $111,696.

The State receives 70% of the total tax from commercial operators and 80% of the total payment from tribal operators for internet gaming. The tax and payment rate ranges from 20% to 28% depending on annual adjusted gross receipts.

For internet sports betting, commercial operators pay 70% of the 8.4% tax rate to the State of Michigan, and 30% to the City of Detroit. Tribal operators pay 8.4% to the State on adjusted gross sports betting receipts.

The Detroit casinos – MGM Grand Detroit, MotorCity Casino, and Greektown Casino – reported City of Detroit wagering taxes and municipal service fees of $1,379,073 for the month of January, with internet gaming reporting $1,315,049 in taxes and fees, and internet sports betting reporting $64,024. Tribal operators reported $428,615 of wagering payments to the tribal governing bodies.

A revenue distribution table is available on the MGCB website here.

 

Michigan Gaming Control Board (“MGCB”) Executive Director Rick Kalm gave an overview  presentation to the Michigan Senate Regulatory Reform Committee on Tuesday, February 16, giving an update of the recent launch of internet gaming and sports betting in the State.  He provided an overview of the differences between Michigan law and other states law, discussed the revenue and tax impact information from the first 10 days, and gave a summary of the steps that the MGCB took to get to a successful launch. The presentation also gave a high-level overview of the rulemaking and licensing process, and addressed many of the senators’ questions regarding internet gaming and sports betting.

Mr. Kalm noted that Michigan is one of the first states to authorize and license both commercial casino operators and tribal casino operators, and suggested that Michigan is likely to be a model of regulation for others as online gaming and online sports betting expands into other jurisdictions.  He provided a thorough breakdown on revenue numbers (see separate story) and noted how the tax revenue will benefit both the state and many local communities.

Mr. Kalm also discussed the path that the MGCB took to get to launch.   He explained that the MGCB’s launch goal was to move quickly, but also to establish the proper regulatory framework.  He noted that the rules were finally approved in early December through the legislative approval process, and the MGCB was able to authorize the launch by January 22nd.  “We previously licensed all the people that were involved to make sure we were able to launch not only quickly, but also to launch safely”, Mr. Kalm noted.   They accomplished getting to launch so quickly by working on the various steps simultaneously.  This included all the licensing of entities and individuals, lab approvals (both private and state lab) and getting through the various regulatory steps on a parallel path with getting the rules finalized.

Mr. Kalm was very appreciative of the hard work of the MGCB staff to process applications and prepare for the launch. He also expressed appreciation for the cooperation of all of the operators and platform providers in giving input on the rules and working with the MGCB to complete the licensing process.  “The biggest thing we need to do is assure responsibility and integrity”, he noted.  Mr. Kalm explained the importance of responsibility, integrity monitoring, geolocation, and know your consumer features to the operation of any form of internet gaming.

Committee Chair Senator Aric Nesbitt asked if there has been anything problematic during the process. Mr. Kalm responded that there was a smooth launch and things have been going very well. He has appreciated the efficiency of the MGCB staff in processing applications, the sophistication of the tribal operators, and the fact that most platform providers have already operated in other jurisdictions.  He said that he was more surprised by how well the launch went then by any other aspect of the process.

Senator Nesbitt asked if we can expect multijurisdictional poker any time soon, to which Mr. Kalm said the MGCB has beenfocusing on getting internet gaming and sports betting launched right now, but that poker is a high priority.  He mentioned that there is a compact between the states of New Jersey, Delaware, and Nevada on this topic, and they have obtained a copy of it to review and consider.  They have met with New Jersey to discuss the topic (even before passage of the law authorizing it).

Mr. Kalm was asked about the responsible gaming measures that are in place for internet gaming and sports betting. Mr. Kalm noted that money apportioned to the problem gambling fund is directed to the Department of Community Health, who is able to spend the money on problem gambling advertisements or programs as it sees fit. He also noted that the problem gambling helpline is required to be on the mobile apps and websites, and that all of the platforms are required to have time stamps, wager amounts, and features to allow consumers to self-regulate their play. He noted that the disassociated persons list is another option for those struggling with addiction.

Finally, Mr. Kalm was asked about the turnaround time for licensing. He responded that it depends on the size of the company and how many individuals are required to be licensed. It also depends upon whether the company has already been licensed in another jurisdiction, which would allow the MGCB to grant a provisional license first. He expressed appreciation for how quick the MGCB staff has become at processing applications over the last several months.

 

The Michigan Gaming Control Board (“MGCB”) announced in a press release on Monday that the Pokagon Band of Potawatomi Indians and its partner Pala Interactive was authorized to begin offering internet gaming and sports betting​ on Monday, February 15, at noon under its Four Winds Casinos brand name.

“We welcome the addition of Four Winds Casinos and Pala Interactive to Michigan’s growing online gaming and sports wagering market,” said Rick Kalm, MGCB Executive Director. “Their participation will generate revenue to support education, economic development and the Pokagon Band’s tribal community.”

In addition to the Pokagon Band and Pala Interactive operation, internet gaming and sports betting are now live at the following previously authorized operations:

  • Bay Mills Indian Community & DraftKings – Internet Casino Games, Internet Sports Betting
  • Grand Traverse Band of Ottawa and Chippewa Indians & William Hill – Internet Casino Games, Internet Sports Betting
  • Greektown Casino & Penn Sports Interactive/Barstool Sportsbook – Internet Casino Games, Internet Sports Betting
  • Hannahville Indian Community & TwinSpires – Internet Casino Games, Internet Sports Betting
  • Keweenaw Bay Indian Community & Golden Nugget Online Gaming – Internet Casino Games, Internet Sports Betting
  • Lac Vieux Desert Band of Lake Superior Chippewa Indians & PointsBet – Internet Sports Betting
  • Little River Band of Ottawa Indians & Rush Street – Internet Casino Games, Internet Sports Betting
  • Little Traverse Bay Band of Odawa Indians & Poker Stars/FoxBet – Internet Casino Games, Internet Sports Betting, Internet Poker
  • MGM Grand Detroit & BetMGM/Roar Digital – Internet Casino Games, Internet Sports Betting
  • MotorCity Casino & FanDuel – Internet Casino Games, Internet Sports Betting
  • Sault Ste. Marie Tribe of Chippewa Indians & WynnBet – Internet Casino Games, Internet Sports Betting

For more information on Michigan internet gaming and sports betting, read the MGCB’s FAQs or visit the Four Winds Casino website.

 

Revenue figures released by the Michigan Gaming Control Board this week show that both online casino gaming and online sports betting are proving to be very popular in the state of Michigan. Gross receipts from both new forms of gaming totaled $42.7 million in the first 10 days of operation, with $29.4 million from Internet gaming and $13.3 million from internet sports betting.  The initial figures demonstrate the strong interest within the state of Michigan for betting on all forms of sports and suggest that this new economic activity is having a positive effect in generating media interest and allowing for people isolated at home due to COVID-19 shutdowns to socialize more through online outlets. Additionally, based on national studies, online sports betting will hopefully have a positive impact on reducing the amount of wagering on illegal offshore accounts that are unregulated.

The total handle for internet sports betting for just these 10 days was $115 million.  The state of Michigan has always been regarded as a big sports-oriented region that puts a ton of local media focus on all types of sports.  With the COVID-19 related lockdowns that have been ongoing, sports betting has proven to be a way for people to engage socially, albeit remotely over the Internet. This has triggered growth and further excitement for local sports media outlets and for their content creators.

Greg Waddell and Carter Elliott, the local sports personalities behind “Sleepers Media“, are not surprised that sports betting has proven to be so popular.  For the past several years The Sleepers have had popular Michigan-based sports focused podcasts and programming that is featured through numerous different outlets, including YouTube, Twitter, and a newly launched live sports chat platform, the LockerRoom app.  Sports betting has long been a staple of their conversations, but they have noticed a massive increase in interactions with fans and listeners with the debut of online sports betting in Michigan. When asked whether Michigan’s legalization of sports betting has enhanced interest in their content, Mr. Waddell stated the following:  “Engagement with our listeners has quadrupled since the day sports betting was legalized in Michigan.  And we have tailored our content to people who are learning to love betting online.  We give out Daily Picks on Twitter and have seen a massive increase in views each day and the participation level of followers has risen tremendously.  Part of the fun of betting on games for sports fans is the social element – people like knowing what their friends are winning/losing on, and they like the camaraderie of gambling together.  We have found success by steering the conversation into a place where an online community of sports fans can come together and win (or lose) together every day.”

Mr. Elliott added a further observation, “there are two types of sports fans – ones that have always been interested in betting lines and point spreads, and ones that are just now learning and getting excited about them.  Betting on sports has gone from something that ten years ago had a niche audience to something that is now an integral part of the way both diehard fans and recreational watchers consume the games they enjoy.”

Legalized sports betting will also hopefully have a positive impact on the reduction of spending on illegal off shore wagering sites.   In its 2020 Survey of American Sports Bettors, the American Gaming Association (“AGA”)  observed that “average spending with illegal bookies fell 25 percent in legal sports betting states last year, while legal online and mobile betting spend increased 12 percent.”  The AGA Survey further notes that 74 percent of sports bettors believe it is important to only wager on legal and regulated sites.  Even though the introduction of legal sports wagering has this positive effect, the AGA’s CEO Bill Miller notes that education of consumers remains important: “Illegal, offshore operators continue to take advantage of unknowing consumers. This only worsened during the [COVID-19] sports shutdown, with unregulated bookmakers offering odds on everything from the weather and shark migration patterns to whether your friends’ marriage will survive the pandemic. The AGA is focused on educating customers on how to wager legally and about the dangers of the illegal market.”

Although the revenue numbers in Michigan only cover a 10-day period, they suggest that legalized online sports betting is having positive effects in generating increased interest for local media outlets that focus on the topic and in reducing the flow of money to illegal off-shore betting sites.

The Michigan Gaming News Letter

Detroit Casinos Report $90.84 Million in January Revenue

The three Detroit casinos – MGM Grand Detroit, MotorCity Casino, and Greektown Casino – reported $90.84 million in January monthly aggregate revenue while operating at limited capacity, according to a press release.

The January market shares were:

  • MGM Grand Detroit – 38%
  • MotorCity Casino – 38%
  • Greektown Casino – 24%

January 2021 table games and slots revenue fell 27.7% compared with January 2020. Monthly revenue increased 293.5% when compared with December 2020. The casinos reopened at limited capacity on December 23 after closing on November 18 due to COVID-19 restrictions.

Year-over-year revenue declined 32% to $34 million at MGM Grand Detroit, 20.7% to $33.2 million at MotorCity Casino, and 30.4% to $19.6 million at Greektown Casino.

The three casinos reported $7 million in gaming taxes to the State of Michigan during January, compared with $9.7 million in January 2020. They also reported submitting $10.3 million in wagering taxes and development agreement payments to the City of Detroit during January 2021.

The Detroit casinos reported a total retail sports betting handle of $35,684,194 in January. Retail sports betting qualified adjusted gross receipts for January were:

  • MGM Grand Detroit – $863,439
  • MotorCity Casino – $1,566,019
  • Greektown Casino – $1,633,659

Qualified adjusted gross receipts are gross sports betting receipts minus the monetary value of free play incentives provided to and wagered by bettors.

The Detroit casinos paid $153,586 in taxes to the State of Michigan on retail sports betting in January, and reported submitting $187,716 in retail sports betting taxes to the City of Detroit in January.

Fantasy contest operators reported total adjusted revenues of $1.9 million for December 2020, and paid $158,726 in taxes to the State of Michigan. During 2020, fantasy contest operators reported $16.7 million in aggregate fantasy contest adjusted revenues and paid $1.4 million in taxes to the State of Michigan.

 

In a press release issued Wednesday, The Match-E-Be-Nash-She-Wish Band of the Pottawatomi Indians (Gun Lake Tribe) announced the 10-year anniversary of the Gun Lake Casino, which opened on February 11, 2011. An economic impact report of the past ten years shows that the Tribe has invested $415 million into Gun Lake Casino, paying $502 million in wages. In total, the casino contributed $2.8 billion to Michigan’s economy since its opening.

“This is a proud milestone for the Gun Lake Tribe, our team members, and the supporters in this community who played an integral role in Gun Lake Casino becoming a reality,” said Tribal Chairman Bob Peters. “As illustrated in the ten-year economic impact report we released today, the Casino provided $2.8 billion to Michigan’s economy in the last ten years. We intend to protect this economic engine for many more years to come.”

Gun Lake Casino directly employs nearly 1,000 team members in gaming operations and pays out approximately $55 million in annual wages. The Casino has paid over $410 million in wages over the past ten years, and purchased over $285 million in goods and services from Michigan-based vendors.

“It is gratifying to celebrate Gun Lake Casino’s 10th anniversary. We are extremely thankful for all of our guests and team members – whom have supported our mission over the past decade,” said Sal Semola, President and COO for Gun Lake Casino. “As we move into the future, I look forward to maintaining our reputation as an economic mainstay in the local community.”

Including the current $100 million casino expansion, the Tribe has invested $415 million into Gun Lake Casino. The current expansion will add more gaming space, entertainment options, and restaurants, bringing the total footprint to 228,000 square feet. Direct construction wages over the past ten years exceed $92 million, with indirect and induced impact of construction generating $148 million in wages.

The Tribe has shared over $150 million in revenue sharing distributions with State and local governments, schools, law enforcement, and civic organizations. The Michigan Economic Development Corporation received over $98 million, while the local revenue sharing board received over $35 million over the past ten years.

 

The Pokagon Band of Potawatomi Indians has finalized a tribal-state compact with the State of Indiana to authorize Class III gaming at its Four Winds Casino in South Bend, Indiana. Class III gaming includes any non-bingo gaming such as traditional slot machines, table games, and sports betting. The Four Winds Casino in South Bend currently offers Class II bingo and electronic forms of bingo games.  Matthew Wesaw, Chairman of the Pokagon Band, and Indiana Governor Eric Holcomb reached an agreement on January 21, which was presented to the Indiana Senate in Senate Bill 356. The Senate voted 36-11 to approve the compact on Tuesday, February 9, and was referred to the House for vote.

“A first in Indiana’s history, this compact was executed in accordance with state law and federal law and obligations and recognizes the sovereign rights of both the State of Indiana and the Pokagon Band,” the Pokagons said in a news release. “It demonstrates the value of our ongoing government-to-government relationship and the commitment of each party to fulfill their responsibilities to their citizens while working cooperatively to comply with all applicable laws.”

If approved, the compact will be Indiana’s first tribal-state compact. After being approved by the Indiana General Assembly, the compact must also be approved by the U.S. Department of Interior.

The Pokagon Band agreed to pay 8% of its slot machine win to Indiana with an exclusivity agreement within a 50-mile radius of Four Winds Casino South Bend. Four Winds would be allowed to offer any gambling game permitted at Indiana casinos, however, mobile sports wagering and any future iGaming would be limited to the tribal property in South Bend.

 

Gun Lake Casino, a long-term partner of Dégagé Ministries, is serving over 400 meals to those in need in celebration of Valentine’s Day on February 12, as reported in a press release.

“Gun Lake Casino is proud to carry on the beloved tradition of providing winter meals for Dégagé Ministries. This year, we celebrate a 10-year partnership with the organization,” said Sal Semola, President and COO of Gun Lake Casino. “Our team takes pride in creating a special menu for those utilizing the services at Dégagé. We hope our dedication to Dégagé’s mission brings hope to those in need.”

Gun Lake Casino hand-delivered freshly prepared food, refreshments, and dessert to the facility, along with a donation of $2,500. Gun Lake Casino’s chef, Keenan Fifield, and other team members prepared breakfast including eggs, sausage, and biscuits and gravy, and lunch including Italian food and red velvet cake.

“Thank you, Gun Lake Casino, for a special Valentine’s Day meal for men and women experiencing poverty and homelessness in the Heartside community. We are so grateful for your ongoing partnership and your commitment to giving back to the community,” said Thelma Ensink, Executive Director for Dégagé Ministries.

The Michigan Gaming News Letter

MGCB Authorizes Additional Operators for iGaming and Sports Betting

The Michigan Gaming Control Board (“MGCB”) first authorized online gaming and sports betting to begin on January 22. Since the initial announcement, several additional operators have been given the green light to begin offering online gaming and sports betting, including:

  • Little Traverse Bay Band of Odawa Indians & Poker Stars – Internet Gaming on Jan. 29
  • Little Traverse Bay Band of Odawa Indians & FoxBet – Internet Sports Betting on Jan. 29
  • Greektown Casino & Penn Sports Interactive/Barstool Sportsbook & Casino – Internet Gaming on Feb. 1. Greektown was previously approved for Internet Sports Betting to launch on Jan. 22

“We welcome the addition of Odawa Casino, Poker Stars, Fox Bet, and Barstool Casino to Michigan’s growing online gaming and sports wagering market,” said MGCB Executive Director Rick Kalm in a press release. “Their participation will generate revenue to support education, tribal communities and the city of Detroit.”

Online gaming and sports betting are now operational with the operations above, in addition to the following previously authorized operations:

  • Bay Mills Indian Community & DraftKings – Internet Casino Games, Internet Sports Betting
  • Grand Traverse Band of Ottawa and Chippewa Indians & William Hill – Internet Casino Games, Internet Sports Betting
  • Greektown Casino & Penn Sports Interactive/Barstool Sportsbook – Internet Sports Betting
  • Hannahville Indian Community & TwinSpires – Internet Casino Games, Internet Sports Betting
  • Keweenaw Bay Indian Community & Golden Nugget Online Gaming – Internet Casino Games, Internet Sports Betting
  • Lac Vieux Desert Band of Lake Superior Chippewa Indians & PointsBet – Internet Sports Betting
  • Little River Band of Ottawa Indians & Rush Street – Internet Casino Games, Internet Sports Betting
  • MGM Grand Detroit & BetMGM/Roar Digital – Internet Casino Games, Internet Sports Betting
  • MotorCity Casino & FanDuel – Internet Casino Games, Internet Sports Betting
  • Sault Ste. Marie Tribe of Chippewa Indians & Wynn – Internet Casino Games, Internet Sports Betting

For more information on Michigan internet gaming and sports betting, read the MGCB’s FAQs or visit the website of each operator listed above.

 

This week, the Michigan Gaming Control Board issued “Minimum Requirements” for the “Resumption for Millionaire Party Events” which will allow qualified charitable organizations to resume Millionaire Party operations throughout the state of Michigan.

The Minimum Requirements require charities to: (1) have a COVID-19 Preparedness and Response Plan in place; (2) provide COVID-19 training to employees, agents and contractors; (3) assure proper social distancing in compliance with other state orders; (4) require all employees, agents, contractors, charity members and patrons to wear face masks; (5) post proper signage informing patrons not to enter if they have been sick and instructing patrons of the need to wear face masks; (6) comply with all Health and Human Services Orders, or other state, federal or local law orders with regard to food and beverage matters; (7) conduct self-screening daily; (8)  comply with cleaning and disinfecting protocols set forth in the guidance; and  (9) establish a case monitoring response plan for dealing with confirmed infections at the location.

Although the MGCB issued this specific guidance for the charities, their suppliers, and locations, it specifically noted that qualified organizations will also have to comply with all applicable local, state, and federal statutes, rules, orders, guidelines, and standards in connection with any potential resumption.

“COVID-19 continues to pose challenges for charities who want to hold millionaire party events,” said Richard S. Kalm, MGCB Executive Director. “We continue to work closely with public health experts and look forward to resuming the events when it’s feasible under all applicable health and safety orders and requirements.”

 

The International Association of Gaming Attorneys (“IAGA”) hosted a webinar on Wednesday, February 3, entitled “Post-Pandemic Gaming Policy: How Will It Impact Markets, Technology and Delivery Channels?” In a panel hosted by Kevin Mullally, Vice-President of Government Relations and General Counsel for Gaming Laboratories International (“GLI”), the webinar delved into the hardships that 2020 brought to the industry, as well as new opportunities that are on the horizon for gaming nationwide.

The panelists included the following experts:

  • Edward R. Bedrosian, Jr. – former Executive Director of the Massachusetts Gaming Commission, current Partner at Orrick, Herrington & Sutcliffe LLP
  • Howard B. Glaser – Global Head of Government Affairs and Special Initiatives for Scientific Games
  • Ayesha Molino – Senior Vice President of · Government Affairs for MGM Resorts International
  • Eric Schippers – Senior Vice President of Public Affairs & Government Relations for Penn National Gaming

The panel’s discussion was guided by key legislative issues on the agenda for 2021, including:

  • Significant opportunities for suppliers
  • Possibility of land-based casinos in Georgia and Texas
  • Concerns about industry cannibalization
  • Growth of sports betting authorization
  • Continued migration to online delivery channels
  • Future route operations

Howard Glaser started the discussion by noting that the pandemic has been a catalyst for trends that the gaming industry was already seeing pre-pandemic, including the rising trend of iGaming. He continued that iGaming has been a predictable, stable, and growing source of revenue for many states during the pandemic, which will be persuasive in changing the minds of legislators in states that are considering iGaming authorization in 2021.

Eric Schippers discussed some of the concerns of industry cannibalization with the introduction of iGaming and sports betting across the country. He explained that iGaming has been additive and incremental to Penn National’s traditional casino customers. Instead of cannibalizing, iGaming has brought new customers, who are then drawn to the brick-and-mortar casinos through incentives and other benefits. Mr. Schippers noted that this is a matter of education for legislators to understand that iGaming and brick-and-mortar casinos can go hand in hand.

Ayesha Molino commented on the possibility of gaming legislation in several closely watched states, including Texas, Georgia, Alabama, and Hawaii. Ms. Molino thinks that the markets in Texas and Georgia are ready for gaming and have a heightened interest in 2021 due to pandemic-related budget crunches and shifting demographics. She noted that gaming discussions in Alabama are “very real”.

Ed Bedrosian discussed some of the biggest problems for states looking to increase revenue in 2021, including: 1) the legislative process, and 2) the regulatory process. He noted that the regulatory process for iGaming and sports betting can be accelerated by looking to other states’ models. Mr. Bedrosian spoke favorably of the vast technological advancements that have been introduced in the industry in 2020. He thinks that the changes are long overdue, noting that cashless wagering will appeal to a younger demographic and the post-pandemic world.

To watch or revisit the webinar, please click here.

 

New research by the American Gaming Association (“AGA”) shows that 23.2 million Americans plan to bet a total of $4.3 billion on Super Bowl LV pitting the Kansas City Chiefs against the Tampa Bay Buccaneers this Sunday. This year, a record 7.6 million bettors will bet with an online sportsbook, an increase of 63% from last year.

“This year’s Super Bowl is expected to generate the largest single-event legal handle in American sports betting history,” said AGA President and CEO Bill Miller. “With a robust legal market, Americans are abandoning illegal bookies and taking their action into the regulated marketplace in record numbers.”

36 million more American adults have gained the opportunity to bet in legal markets since last year’s Super Bowl with seven new markets now live, including: Colorado, Illinois, Michigan, Montana, Tennessee, Virginia, and Washington, D.C.

There is an expected drop in overall Super Bowl betting, caused almost entirely by pandemic restrictions. Retail sportsbooks and casual bets are expected to see the largest declines this year.

The survey, conducted by Morning Consult, shows dramatically shifting betting patterns among the COVID-19 pandemic, including:

  • 1.4 million Americans plan to bet in-person at a sportsbook, down 61% from 2020.
  • 1.8 million bettors plan to place a bet with a bookie, down 21%.
  • 4.5 million Americans plan to place a pool, squares, or similar bet, down 19%.
  • 11.9 million Americans plan to bet casually with friends, down 18%.
  • 56% of bettors plan to bet on the Chiefs while 44% plan to bet on the Buccaneers.

This year, 65% of expected Super Bowl bettors feel that it is important for themselves to use a legal, regulated sportsbook for their bets. 34% of Americans remember seeing responsible gaming messaging in the past year, which is an increase of 5 points from 2020, while 53% of Super Bowl bettors remember seeing responsible gaming messaging in the last year.

“This data is an encouraging sign that our efforts to ground the expansion of sports betting in responsible gaming is taking hold,” said Mr. Miller. “Responsible gaming is core to legal sports betting’s long-term success, and this is borne out by continued demand for consumer protections only available in the legal market.”

The Michigan Gaming News Letter

IAGA to Host Webinar February 3: “Post Pandemic Gaming Policy”

The International Association of Gaming Attorneys (“IAGA”) is hosting a webinar as part of its “Best Practices” series on February 3, 2021, at 11:00 a.m. EST entitled “Post-Pandemic Gaming Policy: How Will It Impact Markets, Technology and Delivery Channels?”. The webinar will include a panel of industry experts discussing which states to watch in the coming months and dissecting the complexity of issues and competing interests of the year ahead.

The webinar will be moderated by Kevin P. Mullally, Vice-President of Government Relations and General Counsel for Gaming Laboratories International (“GLI”). The panelists include the following experts:

  • Edward R. Bedrosian, Jr. – former Executive Director of the Massachusetts Gaming Commission, current Partner at Orrick, Herrington & Sutcliffe LLP
  • Howard B. Glaser – Global Head of Government Affairs and Special Initiatives for Scientific Games
  • Ayesha Molino – Senior Vice President of Government Affairs for MGM Resorts International
  • Eric Schippers – Senior Vice President of Public Affairs & Government Relations for Penn National Gaming

For more information on the webinar series, visit the IAGA’s website here. To register for the webinar, please click here.

 

February 10th marks Gun Lake Casino’s tenth anniversary in West Michigan.

“For ten years and counting, we have focused on the most important aspect in the gaming industry – the needs of our guests and team members. We strive to provide a memorable experience for all, said Sal Semola, President and COO of Gun Lake Casino. “This milestone has been achieved through the dedication and devotion of the Gun Lake Tribe, our team members and our loyal guests. We are exceptionally proud of the transformation of our business over the past decade.”

In the past ten years, Gun Lake Casino has given away through its promotions and gaming services 184 vehicles, $10 million in bonanza bucks jackpots, and over $577.4 million in jackpots.

The casino offers 156,000 square feet of gaming and amenities, over 2,200 slot machines, 50 table games, and a sportsbook. Its amenities include a café, buffet, multiple bars, lounges, and live entertainment. By the end of the summer, Gun Lake Casino’s $100 million expansion will be complete, offering more slot machines, table games, and a larger non-smoking area.

Gun Lake Casino employs nearly 1,000 team members, including over 100 employees from day one of operations. The casino was recently acknowledged as one of “West Michigan’s Best and Brightest Companies to Work For” by the National Association for Business Resources, and was selected as the Best Casino by The Holland Sentinel’s Best of the Best and Best of The West Revue Reader Poll.

To celebrate its 10thanniversary, Gun Lake Casino has planned several promotions and festivities for casino guests throughout the month of February, including over $400,000 in giveaways. To learn more about the promotions, click here.

“There is no better way to celebrate this anniversary than a month of giveaways for our guests,” said Mr. Semola. “We are excited to move forward into another decade of business with those who matter most.”

The Michigan Gaming News Letter

Michigan Launches iGaming and iSports Friday, January 22

The Michigan Gaming Control Board (“MGCB”) authorized ten operators to begin internet gaming and internet sports betting at noon on Friday, January 22. The announcement comes after provisional licenses were issued to a number of operators in December once administrative rules had been filed.

“Michigan can now offer legal, regulated online gaming and sports betting to residents and visitors,” said MGCB Executive Director Rick Kalm in a press release. “It’s an exciting and much anticipated day and will bring revenue to support education, tribal communities, and the city of Detroit.”

Michigan Senator Curtis Hertel (East Lansing) placed the ceremonial first wager at noon, as he was instrumental in drafting the Lawful Internet Gaming Act and Lawful Sports Betting Act.

“It took years of work and significant contributions from several legislators, commercial casino and tribal leaders, industry experts, MGCB staff and others, but today I’d like to recognize Sen. Hertel for the key role he played in taking the idea from dream to reality,” said Mr. Kalm. “His leadership on the 2019 bills made today’s announcement possible, and his work on the recently signed legislation permitting multi-jurisdictional poker will allow poker players to compete against players in other states in the future. It’s a fitting tribute to have Sen. Hertel launch this new era of gaming.”

The operators authorized to begin offerings on January 22 are the following:

  • Bay Mills Indian Community & DraftKings – Internet Casino Games, Internet Sports Betting
  • Grand Traverse Band of Ottawa and Chippewa Indians & William Hill – Internet Casino Games, Internet Sports Betting
  • Greektown Casino & Penn Sports Interactive/Barstool Sportsbook – Internet Sports Betting
  • Hannahville Indian Community & TwinSpires – Internet Casino Games, Internet Sports Betting
  • Keweenaw Bay Indian Community & Golden Nugget Online Gaming – Internet Casino Games, Internet Sports Betting
  • Lac Vieux Desert Band of Lake Superior Chippewa Indians & PointsBet – Internet Sports Betting
  • Little River Band of Ottawa Indians & Rush Street – Internet Casino Games, Internet Sports Betting
  • MGM Grand Detroit & BetMGM/Roar Digital – Internet Casino Games, Internet Sports Betting
  • MotorCity Casino & FanDuel – Internet Casino Games, Internet Sports Betting
  • Sault Ste. Marie Tribe of Chippewa Indians & Wynn – Internet Casino Games, Internet Sports Betting

“Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos,” said Mr. Kalm in a press release. “Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue.”

The MGCB stated in a press release that it expects to authorize additional operators and platform providers in the coming days and weeks as more applicants meet the regulatory requirements for launch.

“We want the public to have confidence when they place wagers, and our agency has required the providers to prove they meet Michigan’s standards, which are designed to protect the participants,” said Mr. Kalm.

Online sports betting is taxed at 8.4%, while internet gaming taxes range from about 20% to 28%. Detroit casinos may also pay a municipal services fee and development agreement payments to the City of Detroit. As previously reported in Volume 27, Issue 2 of The Michigan Gaming Newsletter, tax allocations are different for commercial casinos and tribal casinos. Other funds collected go toward appropriated funding for the MGCB, the Compulsive Gambling Prevention Fund, the First Responder Presumed Coverage Fund, and the State School Aid Fund.

For more information on how and where to bet in Michigan, read the MGCB’s FAQs or visit the website of each operator listed above.

 

On Wednesday of this week, the First Circuit Court of Appeals affirmed a declaratory ruling entered by the U.S. District Court of New Hampshire declaring that the federal Wire Act is only applicable to wagering on “any sporting event or contest” and that it does not have broader application to other forms of online gaming.   As previously reported in Volume 26, Issue 25 of The Michigan Gaming Newsletter, the New Hampshire Lottery Commission (“NHLC”) and its vendor, Michigan-based NeoPollard Interactive, filed suit in federal court in New Hampshire seeking to invalidate a 2018 Opinion from the Department of Justice (“DOJ”) which reversed prior DOJ opinions that had been relied upon by the lottery industry and the online gaming industry.  The 2018 DOJ Opinion took the position that the Wire Act’s prohibitions extend to all forms of wagering, not just sporting events and contests.  The lower court entered a declaratory ruling stating that the Wire Act only applies to sporting events or contest transmissions over the wires, and the First Circuit affirmed this decision.

The State of Michigan Lottery and several other states, lottery commissions, and trade associations filed amicus briefs in support of NHLC and NeoPollard. The much anticipated opinion comes after a three-judge panel heard oral arguments in June 2020, and the DOJ’s fourth extension of its grace period on implementing and prosecuting cases under the 2018 Opinion.

In its opinion written by Judge Kayatta, the First Circuit first concluded that the case presents a justiciable case or controversy, as required under the United States Constitution for a federal court to issue an opinion. The DOJ has sought to avoid a court ruling by issuing a Memorandum calling into question the application of the opinion to state lotteries.

The Court then turned to the main issue involved, the language of two key clauses of the Wire Act. The DOJ’s 2018 Opinion and position in the litigation was that the second clause of the Wire Act prohibiting “[t]he transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers”  should be broadly construed without reference back to the “sporting events or contest” limitation contained in the first clause of the Wire Act.

The Court looked to the plain meaning of the statute’s text, while looking at the whole of the statute, and not “isolated sentences.” The Court concluded that Congress used shorthand in drafting the Wire Act, carrying over a phrase from the first clause to the second clause. The Court also applied a “natural reading” approach in attempt to “harmonize” the provisions of the Wire Act and “avoid the oddities” that other interpretations would create. Ultimately, the First Circuit found that the DOJ’s reading of the statute created “unharmonious oddities”. Legislative history also guided the Court’s conclusions, as it indicated that Congress “train[ed] its efforts solely on sports gambling.” The Court acknowledged the ambiguity of the Wire Act’s language, but concluded that the DOJ’s reading of the Wire Act would “create an odd and unharmonious piece of criminal legislation.”

In its conclusion, the First Circuit affirmed the District Court for the District of New Hampshire’s grant of the Plaintiffs’ motions for summary judgment  and declaratory ruling and its denial of the DOJ’s motion to dismiss and motion for summary judgment, but vacated a portion of the district court’s decision relating to the federal Administrative Procedure Act, as it found it unnecessary to address that issue given its affirmation of the declaratory ruling.

As indicated above, the Michigan Attorney General’s office played a significant leadership role working with other states in arguing in support of the plaintiffs in the case. Assistant Attorneys General Melinda Leonard, Mark Sands, and Donald McGehee worked on the matter on behalf of the state. Michigan Attorney General Dana Nessel released the following statement today related to the Court’s decision:

“This is a major victory for state lotteries across the nation that raise millions of dollars in revenue which directly supports our schools, emergency personnel and other fundamental services for residents,” Nessel said. “Preserving this critical revenue stream is incumbent on me as Attorney General of Michigan, and I am grateful for the bipartisan effort to achieve that. Ensuring our schools and first responders have funding to perform their duties should not be an issue divided by politics and party affiliation.”

 

The Financial Crimes Enforcement Network (FinCEN), jointly with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency, and in consultation with the staff of certain other federal functional regulators, issued responses to Frequently Asked Questions (FAQs) Regarding Suspicious Activity Reporting and Other Anti-Money Laundering (AML) Requirements this week.

The FAQs and answers address the following topics:

  1. Requests by Law Enforcement for Financial Institutions to Maintain Accounts.
  2. Receipt of Grand Jury Subpoenas/Law Enforcement Inquiries and SAR Filing.
  3. Maintaining a Customer Relationship Following the Filing of a SAR or Multiple SARs.
  4. SAR Filing on Negative News Identified in Media Services.
  5. SAR Monitoring on Multiple Negative Media Alerts.
  6. Information in Data Fields and Narrative.
  7. SAR Character Limits.

The complete five page set of FAQs is available at this link.

 

The Pokagon Band of Potawatomi announced that it provided $860,000 to the City of South Bend, Indiana, and several local non-profit organizations. The annual contribution marks the third year of a five-year voluntary local agreement between the Pokagon Band and the City of South Bend.

“The Pokagon Band is very proud to be able to make our annual voluntary contributions to the City of South Bend and several non-profit organizations that play a vital role in serving the community,” said Matthew Wesaw, Tribal Chairman of the Pokagon Band and CEO of the Pokagon Gaming Authority. “Although the challenges due to COVID-19 persist, we must continue to find ways to support individuals and families, especially those with the greatest need. We are fortunate to be in a position to continue to provide this level of support in the current environment.”

“The Pokagon Band of Potawatomi have been a generous partner in our community, and we are grateful for their contributions to improve our city’s parks, open spaces, and neighborhoods,” said Mayor of South Bend James Mueller. “We look forward to continuing this great partnership into the future.”

Communities and non-profit organizations receiving a portion of the contribution are:

  • South Bend Venues, Parks & Arts
  • Beacon Children’s Hospital
  • The Bowman Creek Project
  • The South Bend Community School Corporation
  • The YWCA of North Central Indiana
  • Jobs for America’s Graduates Indiana
  • The Food Bank of Northern Indiana
  • The Boys & Girls Clubs of St. Joseph County

 

Gun Lake Casino announced that it distributed over $639,000 in quarterly incentives to its team members in January to show its thanks for being acknowledged as one of “West Michigan’s Best and Brightest Companies to Work For” by the National Association for Business Resources in 2020. Since 2011, Gun Lake Casino has given over $17.2 million in quarterly bonuses to its team members.

“We are exceptionally proud, especially during the ongoing pandemic, to continue our quarterly bonus program at Gun Lake Casino. The devotion and hard work of our team played a monumental role in our success throughout this difficult year,” said Sal Semola, President and COO of Gun Lake Casino. “This is our third round of bonuses provided during the pandemic, totaling over $2 million in support given to our hardworking team.”

In addition to the bonuses, Gun Lake Casino continued to provide health benefits and compensation to all team members during the recent pause in amenities offered from November 20 through January 15, due to COVID-19.

The Michigan Gaming News Letter

Michigan Gaming Control Board Authorizes Online Gaming, Sports Betting to Begin Jan. 22

The Michigan Gaming Control Board today authorized nine operators to begin online sports betting or both online gaming and sports betting at noon on Friday, January 22, 2021.  Below find the issued press release.

“The Michigan Gaming Control Board and the state’s commercial and tribal casinos will begin a new era Jan. 22 with the launch of regulated online gaming and sports betting,” said Richard S. Kalm, MGCB executive director. “Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos. Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue.”

The operators authorized to begin online offerings Jan. 22 are:

  • Bay Mills Indian Community & DraftKings – Internet Casino Games, Internet Sports Betting
  • Grand Traverse Band of Ottawa and Chippewa Indians & William Hill – Internet Casino Games, Internet Sports Betting
  • Greektown Casino & Penn Sports Interactive/Barstool Sportsbook – Internet Sports Betting
  • Hannahville Indian Community & TwinSpires – Internet Casino Games, Internet Sports Betting
  • Keweenaw Bay Indian Community & Golden Nugget Online Gaming – Internet Casino Games, Internet Sports Betting
  • Little River Band of Ottawa Indians & Rush Street – Internet Casino Games, Internet Sports Betting
  • MGM Grand Detroit & BetMGM/Roar Digital – Internet Casino Games, Internet Sports Betting
  • MotorCity Casino & FanDuel – Internet Casino Games, Internet Sports Betting
  • Sault Ste. Marie Tribe of Chippewa Indians & Wynn – Internet Casino Games, Internet Sports Betting

The days between authorization and launch will give the operators and platform providers additional time for testing and adjustments before the gaming goes live, Kalm said.

The MGCB expects to authorize additional operators and platform providers in the coming days and weeks as agency staff review other submissions to ensure they meet the state’s regulatory requirements. Controls to ensure safety and fairness for bettors have been key concerns for the MGCB.

“We want the public to have confidence when they place wagers, and our agency has required the providers to prove they meet Michigan’s standards, which are designed to protect the participants,” Kalm said.

Taxes and Payment Rates

The tax and payment rate for online sports betting is 8.4 percent. The tax and payment rate for internet gaming ranges from about 20 percent to 28 percent.

The Detroit casinos also may be required to pay a municipal services fee and a development agreement payment to the city of Detroit.

Tax Allocations

For the Detroit casinos, online sports betting and internet gaming taxes are allocated:

  • 30 percent to the city of Detroit
  • 5 percent to the Michigan Agriculture Equine Industry Development Fund (up to $3 million per year from each tax source)
  • 65 percent to the state Internet Sports Betting Fund or the state Internet Gaming Fund

For internet gaming, a hold-harmless provision seeks to help the city recoup lost gaming tax revenue if the city of Detroit collects less than $183 million in a fiscal year.

For the tribal casinos:

  • Online Sports Betting: Payments by tribes are allocated to the Internet Sports Betting Fund (90 percent) and the Michigan Strategic Fund (10 percent)
  • Internet Gaming: Payments by tribes are allocated 20 percent to local jurisdiction governing body for services, 70 percent to the state Internet Gaming Fund and 10 percent to the Michigan Strategic Fund.

Internet Sports Betting Fund/Internet Gaming Fund

Other money collected under these acts will be used for:

  • Appropriated funding for MGCB
  • The Compulsive Gaming Prevention Fund ($500,000 annually after board expenditures)
  • The First Responder Presumed Coverage Fund ($2 million after board expenditures and compulsive gambling fund)
  • The State School Aid Fund (all money remaining after the above expenditures)

Resources

The MGCB has published FAQspatron dispute forms and a sports wagering catalog on its website, www.michigan.gov/mgcb.

The platform providers’ websites will have information on establishing an account as well as self-exclusion options for problem gamblers. The Michigan Department of Health and Human Services maintains a 24-hour, toll-free, gambling-problem helpline, 1-800-270-7117.