The Joint Committee on Administrative Rules (JCAR) supports the Michigan Gaming Control Board’s (MGCB) proposed new set of guidelines. This may affect certain fantasy sports games in Michigan. The most recent ban takes care of all types of proposed hazards to athletes in the scenario of the bettor going against the house.
This is commonly referred to as Pick’em contests, and businesses such as PrizePicks and Underdog Fantasy offer them. It differs from the standard fantasy sports multiplayer lineup contests offered by companies such as DraftKings and FanDuel.
Since 2022, Underdog has ceased its operations in Michigan. During this period, Michigan developed DFS regulatory requirements. In the case of pick-em contests, Boom Fantasy, PrizePicks, and RealTime Fantasy Sports are involved. According to the proposed regulations, this falls under prop wagering.
The Coalition for Fantasy Sports came out with a statement that suggested that hordes of sports fanatics were against MGCB’s fresh set of regulations and that JCAR was the recipient of more than 2,600 emails, along with 700 phone conversations on this issue. Despite these endeavors, the JCAR consented to the regulations since it never acted upon the issue, even with a 15-day deciding period.
According to the State Senator, Jim Runestad, it has been some time since people have been reaching out on the subject. However, Chairman Haadsma, along with the JCAR Democrats, maintained their silence. In his opinion, they gave in to the prime donors for business purposes and went against the will of the masses. Runestad has committed to continue functioning with the Gaming Commission and the concerned lawmakers to bring back connectivity to legal fantasy sports games on various online sportsbooks.
The news was generated in Michigan a day after New York regulators issued the same viewpoint, responding to opinions on their suggested regulations. Two weeks earlier, Florida had issued cease-and-desist statements to the operators of fantasy sports, like Underdog Fantasy, PrizePicks, and Betr.
After PASPA was repealed, sports betting was made legal in each of these states. Their taxation of sports wagering operators ranges from 10 percent to 51 percent. The licensing fees range between $100,000 and $25 million.
It is a wait-and-watch period for Michigan’s rules to be implemented and requires the consent of the state legislature. A while back, the legislature agreed to a regulation alteration wherein fantasy operators needed to obtain licenses. This is one of the reasons Underdog and Yahoo quit the scene.