Michigan Laws 432.307 – Internet gaming operator license; issuance and renewal; compliance requirements; Indian tribe compacts
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Terms Used In Michigan Laws 432.307
- Adjusted gross receipts: means gross receipts less a deduction equal to the amount of free play provided and wagered by authorized participants as an incentive to place or as a result of placing internet wagers under this act. See Michigan Laws 432.303
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Authorized participant: means an individual who has a valid internet wagering account with an internet gaming operator and is 21 years of age or older. See Michigan Laws 432.303
- Board: means the Michigan gaming control board created under section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432. See Michigan Laws 432.303
- Casino: means a building or buildings in which gaming is lawfully conducted under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432. See Michigan Laws 432.303
- Compact: means a tribal-state compact governing the conduct of gaming activities that is negotiated under the Indian gaming regulatory act, Public Law 100-497, 102 Stat 2467. See Michigan Laws 432.303
- Gross receipts: means the total of all sums, including, but not limited to, valid or invalid checks, valid or invalid credit or debit card deposits, valid or invalid ACH deposits, currency, coupons, free play or promotional credits, redeemable credits, vouchers, entry fees assessed for tournaments or other contests, or instruments of monetary value whether collected or uncollected, in each case actually wagered by an authorized participant at or with an internet gaming operator on an internet game, less all of the following:
(i) Winnings. See Michigan Laws 432.303Indian lands: means that term as defined in 25 USC 2703. See Michigan Laws 432.303 Indian tribe: means that term as defined in 25 USC 2703 and any instrumentality, political subdivision, or other legal entity through which an Indian tribe operates its casino in this state. See Michigan Laws 432.303 Internet: means the international computer network of interoperable packet-switched data networks, inclusive of such additional technological platforms as mobile, satellite, and other electronic distribution channels. See Michigan Laws 432.303 Internet gaming: means operating, conducting, or offering for play an internet game. See Michigan Laws 432.303 Internet gaming operator: means a person that is issued an internet gaming operator license from the board. See Michigan Laws 432.303 Internet gaming platform: means an integrated system of hardware, software, applications, including mobile applications, and servers through which an internet gaming operator operates, conducts, or offers internet gaming. See Michigan Laws 432.303 Internet wager: means money or something of monetary value risked on an internet game. See Michigan Laws 432.303 Internet wagering: means risking money or something of monetary value on an internet game. See Michigan Laws 432.303 Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Person: means an individual, partnership, corporation, association, limited liability company, federally recognized Indian tribe, or other legal entity. See Michigan Laws 432.303 Poker: means the traditional game of poker, and any derivative of the game of poker as approved by the board, in which 2 or more authorized participants play against each other and wager on the value of the cards in the authorized participants' hands. See Michigan Laws 432.303 Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) The board shall condition the issuance, maintenance, and renewal of an internet gaming operator license to a person described in section 6(1)(b) on the person’s compliance with all of the following conditions:
(a) The person complies with this act, rules promulgated by the board, and minimum internal controls pertaining to all of the following:
(i) The types of and rules for playing internet games that internet gaming operators may offer under this act.
(ii) Technical standards, procedures, and requirements for the acceptance, by the person, of internet wagers initiated or otherwise made by individuals located in this state who are not physically present on the person’s Indian lands in this state at the time the internet wager is initiated or otherwise made.
(iii) Procedures and requirements for the acceptance of internet wagers for poker initiated or otherwise made by individuals located in other jurisdictions, if the board authorizes multijurisdictional internet gaming for poker as provided in this act.
(iv) The requirements set forth in section 11.
(b) The person adopts and maintains technical standards for internet gaming platforms, systems, and software that are consistent with the standards adopted by the board under section 10.
(c) The person maintains 1 or more mechanisms on the internet gaming platform that are designed to reasonably verify that an authorized participant is 21 years of age or older and that internet wagering is limited to transactions that are initiated and received or otherwise made by an authorized participant located in this state or, if the board authorizes multijurisdictional internet gaming for poker as provided in this act, another jurisdiction in the United States authorized by the multijurisdictional agreement.
(d) The person adopts and maintains responsible gaming measures consistent with those described in section 12.
(e) The person continues to maintain and operate in this state a casino offering class III gaming and the casino contains not less than 50% of the gaming positions that were in place on December 20, 2019.
(f) The person, within the time period described in section 14(3), makes payments, to be allocated as outlined in section 15a, based on a graduated percentage schedule on the adjusted gross receipts received each calendar year by the person from all internet gaming it conducts under this act as an internet gaming operator, as set forth below:
(i) For adjusted gross receipts less than $4,000,000.00, 20%.
(ii) For adjusted gross receipts of $4,000,000.00 or more but less than $8,000,000.00, 22%.
(iii) For adjusted gross receipts of $8,000,000.00 or more but less than $10,000,000.00, 24%.
(iv) For adjusted gross receipts of $10,000,000.00 or more but less than $12,000,000.00, 26%.
(v) For adjusted gross receipts of $12,000,000.00 or more, 28%.
(g) The person agrees to provide and timely provides, on written request of the board, books and records directly related to its internet gaming operations for the purpose of permitting the board to verify the calculation of the payments under subdivision (f).
(h) The person provides a waiver of sovereign immunity to the board for the sole and limited purpose of consenting to both of the following:
(i) The jurisdiction of the board to the extent necessary and for the limited purpose of providing a mechanism for the board to do all of the following:
(A) Issue, renew, and revoke the person’s internet gaming license.
(B) Enforce the payment obligations set forth in this section and section 14.
(C) Regulate the person under and enforce sections 10(a), (b), (d) to (g), 11, 12(4) and (5), 13, 19, and 21.
(D) Inspect the person’s internet gaming operation and records to verify that the person is conducting its internet gaming operation in conformity with this act.
(E) Assess fines or monetary penalties for violations referred to in sub-subparagraph (C).
(F) Enforce the payment of internet gaming license fees described in section 6(9).
(ii) The jurisdiction of the courts of this state, and expressly waiving the exhaustion of tribal remedies, with the circuit court for Ingham County having exclusive jurisdiction, and any courts to which appeals from that court may be taken, to permit this state to enforce administrative orders of the board, the person’s obligation to make payments required under subdivision (f), and collection of any judgment. Any monetary award under this subparagraph is deemed limited recourse obligations of the person and does not impair any trust or restricted income or assets of the person.
(2) This state, acting through the governor, at the request of any Indian tribe, is authorized to negotiate and conclude and execute any amendments to an Indian tribe’s compact necessary to effectuate internet gaming by the Indian tribe under this act and to ensure internet gaming conducted by the Indian tribe is in compliance with this act and any applicable federal laws. If the governor fails to enter into negotiations with the Indian tribe, or fails to negotiate in good faith with respect to the request, this state waives its sovereign immunity to permit the Indian tribe to initiate an action against the governor in his or her official capacity in either state court or in federal court and obtain those remedies as authorized in 25 USC 2710(d)(7).
(3) Notwithstanding anything in this act to the contrary, this act only regulates internet gaming as provided in this act and does not extend to the board, or any other agency of this state, any jurisdiction or regulatory authority over any aspect of any gaming operations of an Indian tribe described in section 4(4)(b) beyond those rights granted to this state under the compact with the Indian tribe.