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.

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Joni M. Thrower Davis and Andrew T. Palms were reappointed as board members of the gambling regulator in Michigan, the Michigan Gaming Control Board (MGCB), by Gov. Gretchen Whitmer. Earlier this week, MGCB’s executive director, Henry Williams, confirmed the reappointment of the two.

Initially, Palms was appointed to the MGCB by the now-former Gov. Rick Snyder back in 2012. Considering his reappointment, he enters his 12th year as a member of the board of the gambling regulator. On the other hand, Davis first joined the MGCB as a board member at the start of 2020 after she was selected as the successor of Patrick M. McQueen. The reappointment starts Davis’ second four-year term.

According to the MGCB, the two board members were reappointed for a term that is set to expire on December 31, 2027. Currently, the board of the gambling regulator consists of five members who are residents of the state and are appointed by the Governor. Per the existing rules, one of the members is designated as a chairperson, a role that is currently held by Linda Forte. The recent reappointments reinstated Davis and Palms to the board who join Deidre A. Lambert-Bounds, another board member, while one member spot remains vacant.

The Duo Will Continue to Assist the Regulator

Palms, a Chelsea resident, currently holds a bachelor’s degree of general studies in computer science, business and engineering from the University of Michigan. For more than 30 years, he has worked at the university and currently serves as the executive director of ITS Infrastructure.

On the other hand, Davis is a Detroit resident. She holds a Juris Doctor from Emory University School of Law along with a bachelor’s degree from the University of Michigan. Davis is currently a managing partner for Jamjomar while at the same time operating and owning four McDonald’s restaurants located in Detroit’s metropolitan area.

“I appreciate Governor Whitmer’s decision to reappoint Joni and Andrew to the Board, which is well-deserved recognition of their dedication, expertise, and valuable contributions to our agency’s mission and vision.“

Henry Williams, executive director of the MGCB

Williams praised Gov. Whitmer’s decision to reappoint both Palms and Davis to MGCB’s board. He recognized their extensive expertise and dedication, making them invaluable assets to the regulator.

Williams predicted that the MGCB’s board will continue to make effective decisions and remain stable, boosted by the duo’s appointments. Finally, he said that the gambling regulator will continue to tackle emerging challenges within the sector across Michigan.

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The gambling regulator in Michigan, the Michigan Gaming Control Board (MGCB), would benefit from nearly $51 million in funding, after the state’s legislators reached an agreement for the Fiscal Year 2024 budget. Overall, some $50.7 million would be dedicated to the regulator, allowing it to continue to effectively monitor the market and promote responsible gambling.

Within the new budget, some $3 million in annual funding is allocated for MGCB’s responsible gaming messaging campaign called “Don’t Regret the Bet.” The responsible gaming initiative seeks to raise awareness of problem gambling and help residents of Michigan to keep their gambling under control.

According to the gambling regulator, as a part of the new 2024 budget, it will benefit from $2.2 million which will be allocated for 16 full-time equivalent (FTE) employee positions that can support new gambling programs. Additionally, the regulator will benefit from a one-time funding of $2 million which will be used “to create an accounts receivable system that is integrated with an existing internal agency database and the state’s financial system, SIGMA.”

The new budget agreement is now awaiting the signature of Gov. Gretchen Whitmer. Once that happens and the new bipartisan budget agreement is signed into law, the allocation of funds is expected to be completed on October 1, 2023, which marks the start of the state’s FY2024 budget calendar year.

The Funding Will Provide Vital Support for the MGCB

Henry Williams, MGCB’s executive director, spoke about the importance of having a gaming regulator that is sufficiently funded. He explained that the MGCB plays a key role in combating illegal activities and fraud, while at the same time promoting safer gambling.

Finally, Williams pointed out: “I sincerely appreciate the support from Governor Whitmer and the Legislature of a budget that will help the MGCB continue its responsible gaming messaging campaign, support our state’s growing gaming economy, and allow us to grow our team and make investments into efficient systems that help strengthen our mission and integrity while supporting those we serve.”

“A well-funded gaming control agency is crucial for ensuring fair and honest gaming in the State of Michigan, preventing fraud and illegal activities, and addressing problem gambling.“

Henry Williams, executive director at the MGCB

The announcement about the new budget comes after the results for the three casinos in Detroit for May were released recently. Judging by the latest report by the MGCB, the state’s three casinos reported $105.6 million in monthly aggregate revenue. This helped raise some $8.5 million in taxes, which was in line with the $8.6 million in taxes collected in May 2022.

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