LANSING – Rep. Robert Kosowski on Wednesday told the Michigan House Regulatory Reform Committee one way to get more funding for the state’s roads and bridges is to legalize sports gambling and simulcasting horse races at casinos in the state.
HB 4469 and HB 4470 would allow casinos to accept wagers on sporting events, remove the current prohibition on televising simulcast horse races at casinos and allow for wagers on the races as well.
Kosowski (D-Westland) said he would be open to expanding the bill to horse racing tracks in the state.
To actually become law, the bills have several obstacles to overcome. First, a two-thirds majority is needed from both chambers and would need voter approval during the general election. Additionally, a federal court found that New Jersey’s efforts to legalize sports betting violated federal law.
But Kosowski said the court is going to re-hear the case and there is a chance the original decision would be overturned.
“There are bookies everywhere. We all know this. Why not regulate it?” Kosowski said.
Originally, Kosowski intended to use the legislation to get more road funding. But he said as he has done more research, he would like some of the revenue generated to go to the race tracks in the state, and some funds to go to gambling addiction treatment and prevention.
Rep. Ray Franz (R-Onekama), chair of the committee, asked Kosowski what kind of support he had for the bill, noting that he didn’t have any co-sponsors. Kosowski said he doesn’t ask for co-sponsors and he believes the support is there.
Joe Asher, CEO of William Hill U.S., a bookmaking company, told the committee regulating the business is best.
Asher said suspicious activity can be reported and investigated in real time. And, he said, since it is the company’s money being used there is incentive to call and report such activity.
“Oversight and protection do not occur in Michigan, however, because the illegal operators …exist, and are not regulated,” he said.
Asher said if casinos outsource the bookmaking there is little risk to them because companies such as his often front the cost.
He also said there may be losing days or weeks in the business, but there are very few losing months.
George Kutlenios, president of the Michigan Horseman’s Benevolent and Protective Association, told the committee in June 2014 that Michigan thoroughbred horses returned to the Hazel Park raceway and saw 10,000 fans. He said attendance on regular days has consistently averaged 6,000 people.
Kutlenios said he appreciates the bill but would like to see a provision creating a relationship between any venue wishing to simulcast thoroughbred racing and a licensed state track to “ensure sustainability and quality of Michigan thoroughbred racing, and the resulting support to the state’s agricultural industry can continue.”
This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com
