Michigan Laws 432.407 – Sports betting operator license; issuance and renewal; compliance requirements; Indian tribe compacts
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Terms Used In Michigan Laws 432.407
- Adjusted gross sports betting receipts: means gross sports betting receipts less a deduction for the monetary value of free play wagered by authorized participants as an incentive to place or as a result of their having placed internet sports betting wagers. See Michigan Laws 432.403
- 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 sports betting account with a sports betting operator and is at least 21 years of age. See Michigan Laws 432.403
- 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 432.403
- 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 432.403
- Compact: means a tribal-state compact governing the conduct of gaming activities in this state that is negotiated under the Indian gaming regulatory act, Public Law 100-497, 102 Stat 2467. See Michigan Laws 432.403
- Indian lands: means that term as defined in 25 USC 2703. See Michigan Laws 432.403
- 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 432.403
- Internet: means the international computer network of interoperable packet-switched data networks, inclusive of additional technological platforms, such as mobile, satellite, and other electronic distribution channels. See Michigan Laws 432.403
- Internet sports betting: means operating, conducting, or offering for play sports betting through the internet. See Michigan Laws 432.403
- Internet sports betting platform: means an integrated system of hardware, software, or applications, including mobile applications and servers, through which a sports betting operator operates, conducts, or offers sports betting through the internet. See Michigan Laws 432.403
- Internet sports betting wager: means the cash, or cash equivalent, including free play, loyalty points, and other redeemable sports betting credits, risked by an authorized participant on sports betting through the internet. See Michigan Laws 432.403
- 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 432.403
- 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
- Sports betting: means to operate, conduct, or offer for play wagering conducted under this act on athletic events and other events approved by the board. See Michigan Laws 432.403
- Sports betting operator: means a person that is issued a sports betting operator license. See Michigan Laws 432.403
- Sports betting operator license: means a license issued by the board to a person to operate, conduct, or offer internet sports betting. See Michigan Laws 432.403
- 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 a sports betting 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 internet sports betting offered under this act.
(ii) Technical standards, procedures, and requirements for the acceptance, by the person, of internet sports betting 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 sports betting wager is initiated or otherwise made.
(iii) Procedures and requirements for the acceptance of internet sports betting wagers initiated or otherwise made by individuals located in other jurisdictions, if the board authorizes multijurisdictional sports betting as provided in this act.
(iv) The requirements set forth in section 10a and 11.
(b) The person adopts and maintains technical standards for internet sports betting 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 sports betting platform that are designed to reasonably verify that an authorized participant is 21 years of age or older and that internet sports betting 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 sports betting 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 the effective date of this act.
(f) The person pays to this state within the time period described in section 14(3), 8.4% of the adjusted gross sports betting receipts received by that person from all internet sports betting conducted under this act. All payments made under this subdivision must be allocated according to section 15a.
(g) The person agrees to provide and timely provides, on written request of the board, books and records directly related to its internet sports betting 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 sports betting operator license.
(B) Enforce the payment obligations set forth in this section and section 14.
(C) Regulate the person under and enforce sections 10(1)(a), (b), (d) to (g), 10a, 11, 12(4) and (5), 13, and 16a.
(D) Inspect the person’s internet sports betting operation and records to verify that the person is conducting its internet sports betting in conformity with this act.
(E) Assess fines or monetary penalties for violations referred to in sub-subparagraph (C).
(F) Enforce the payment of sports betting operator 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, and any courts to which appeals from that court may be taken, having exclusive jurisdiction to permit this state to enforce administrative orders of the board, the person’s obligation to make payments required under subdivision (f), and to enforce 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 sports betting by the Indian tribe under this act and to ensure internet sports betting conducted by the Indian tribe is in compliance with this act. If the governor fails to enter into negotiations with the Indian tribe, or fails to negotiate in good faith with respect to any 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 sports betting 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 other aspect of any gaming operations of an Indian tribe described in section 4(4) beyond those rights granted to this state under this act and the compact with the Indian tribe.