On Thursday, June 27, the Michigan Legislature finalized an agreement on the state’s Fiscal Year 2025 budget, earmarking $1.9 million to support the addition of 14 full-time equivalent (FTE) staff positions at the Michigan Gaming Control Board (MGCB). These new positions are crucial for expanding the MGCB’s regulatory capacity, particularly in internet gaming and sports betting, among the fastest-growing gaming markets in the U.S. This move aims to enhance protections against illegal activities and ensure a fair gaming environment.
Expansion of Regulatory Capacity
The additional funding will enable the MGCB to bolster its regulatory operations significantly. With the influx of 14 new FTE positions, the agency can better manage the increasing demands of the growing gaming market in Michigan. The Wolverine State has seen rapid growth in both sports betting and internet gaming, necessitating a more robust regulatory framework to maintain integrity and prevent illegal wagering.
In addition to the staffing boost, the MGCB will allocate another $3 million from its FY2025 budget to continue its “Don’t Regret the Bet” responsible gaming campaign. Launched on March 1, 2023, this campaign provides valuable tips and information to help Michigan citizens gamble responsibly and avoid the pitfalls of problem gambling.
Support for Compulsive Gambling Prevention
A significant portion of the new budget focuses on responsible gaming initiatives. The Compulsive Gambling Prevention Fund will see a $3 million increase, doubling its previous allocation. These funds will enhance the 24/7 Gambling Disorder Helpline operated by the Michigan Department of Health & Human Services. Additionally, the funding will support gambling research, educational programs for youth, and existing treatment options for those struggling with gambling addiction.
MGCB Executive Director Henry Williams expressed his gratitude, stating, “The MGCB’s increased contribution, from $3 million to $6 million, to the Compulsive Gambling Prevention Fund demonstrates our proactive approach towards responsible gaming. Together, we are safeguarding the industry’s integrity while prioritizing the well-being of Michigan citizens.”
The bipartisan budget agreement now awaits Governor Gretchen Whitmer’s signature before becoming law. Once signed, the funding allocations will take effect on October 1, marking the beginning of the state’s FY2025 budget year.
Ongoing Regulatory Actions
As Michigan navigates its dynamic gaming industry, the MGCB continues to take decisive actions against illegal operators. In May, the MGCB issued a cease and desist order to Bovada, an offshore sportsbook, demanding it stop accepting customers from Michigan. The Costa Rica-based sportsbook was given 14 days to comply or face legal action for violating several state gaming laws. Bovada has since exited Colorado and is banned in New York and Maryland.
The MGCB also oversees the state’s daily fantasy sports market, which has seen regulatory changes. Late last year, the board banned pick’em style DFS contests due to their resemblance to player prop bets, demonstrating the MGCB’s commitment to maintaining a fair and regulated gaming environment.
Source:
Michigan Gaming Control Board to increase regulatory capacity with additional staff, contribute $6M to Compulsive Gambling Prevention Fund, michigan.gov, June 27, 2024.