A Senator in Michigan proposed a piece of legislation that aims to change state gaming law regarding the legality of social wagering contests.
Earlier this month, Sen. Veronica Klinefelt introduced Senate Bill 511, which would amends the Michigan Penal Code to authorize social wagering contests, like betting pools and sports squares. SB 511 allows for wagering transactions that are “incidental to a bona fide social relationship.”
“With SB 511, its sole purpose is to legalize what we do every day, what everybody does all the time, bets their best friend $5 on a football game,” said Klinefelt during a Committee on Regulatory Affairs hearing. “People do March Madness and Super Bowl squares with their friends, nobody is making any money, nobody is making any profit off of it.”
The bill proposes allowing social wagering pools or contests that have a maximum of 100 participants with individual wagers up to $25. SB 511 creates a pathway for social wagering contests such as March Madness bracket pools and Super Bowl squares to be legal in the Wolverine State. Under SB 511, “no other money or thing of value” can be included in the contests outside of the initial individual wager amounts. The piece of legislation also requires contest prizes to only be awarded to one or more participates in the transaction.
SB 511 also lays out specific rules for where the contests can take place.
The measure prohibits social wagering transactions from taking place at gambling establishments, including brick-and-mortar sportsbooks. SB 511 also bans transactions at restaurants, entertainment venues or bars. Businesses that host the transactions are barred from promoting them to “bring in extra customers to the business.”
Klinefelt’s measure also proposes changing the penalty for violating SB 511’s specific section of the Michigan Penal Code from a fine of not more than $1,000 to $5,000.
SB 511’s support and opposition in Michigan
SB 511 was referred to the Committee on Regulatory Affairs for further consideration. Potential amendments to the bill include increasing the maximum wager amount to $100.
The bill also has support from Sens. Sue Shink, Jonathan Lindsey and Joseph Bellino.
“There are individuals on both sides of the aisle who are interested in this [SB 511],” continued Klinefelt.
The lawmaker also noted growing concern about the bill from casinos. The establishments believe SB 511 violates the state’s constitutional amendment requirements for gambling.
SB 511 is also receiving pushback from several federally recognized tribes in Michigan. The tribes include the Nottawaseppi Huron Band of the Potawatomi and the Gun Lake Tribe.
