317 lines
23 KiB
Plaintext
317 lines
23 KiB
Plaintext
Internet Gaming and Sports
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Betting FAQs For
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Businesses
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Licensing
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Q: I am a business owner and would like to be licensed by the MGCB to provide services
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for internet sports betting and/or online betting. What do I need to do?
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A: The MGCB has published application forms for online sports betting and internet gaming on
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its website. You will find links to forms on the Internet Gaming and Fantasy Contests page.
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If you are uncertain whether you require a license or registration, please complete and submit a
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Supplier Inquiry Form. Upon receipt of this form, a licensing coordinator will contact you to
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discuss licensing requirements.
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Independent Test Labs
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Q: Do independent test labs require approval by the Michigan Gaming Control Board?
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A: Yes, an independent test lab (ITL) must be approved by the MGCB before software or
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hardware manufacturers can submit their products for ITL review. The manufacturers are
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required to send only approved ITLs’ certification letters to the MGCB Gaming Lab. The MGCB
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Gaming Lab will conduct a review of the ITL’s systems and capabilities prior to approving an
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ITL.
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Q: Are ITLs required to be licensed to provide ITL services to a software/hardware
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manufacturer, and/or an internet gaming operator/platform provider, internet sports
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betting operator/platform provider
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A: Yes.
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Equipment
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Q: Can an internet gaming and/or internet sports betting supplier license applicant ship
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equipment (ex., blank servers, switches, routers, etc.) to a Michigan facility (i.e., data
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center or casino)?
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A: An internet gaming and/or internet sports betting supplier license applicant is not prohibited
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from shipping equipment to a Michigan facility prior to receiving a license for the purpose of
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preparing for the launch of internet gaming and/or internet sports betting in Michigan, provided
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both of the following conditions are met:
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(1) No gaming software is installed in the live gaming or production environment unless
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approved by the MGCB or used only to conduct limited testing in accordance with the conditions
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established below.
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(2) The equipment will not be used for internet gaming and/or internet sports betting until the
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internet gaming and/or internet sports betting operator is licensed and authorized by the MGCB
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to go live.
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The shipment of equipment prior to licensure will have no bearing on the MGCB’s decision to
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grant or deny an applicant’s request for a license. In the event an applicant does not receive a
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license for any reason, the MGCB assumes no liability.
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Q: May operators and platform providers perform very limited testing in the production
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environment, primarily to test setup and integrations to ensure the production
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environment is fully functional, provided that the production environment has no
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external exposure until the approved go-live date and time?
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A: Yes, provided all of the following conditions are met:
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(1) There are no alternative means to perform the testing in a test environment that mirrors the
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production environment.
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(2) Testing will be performed by operator or platform provider personnel and their identified
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designees who have read and agreed to all test account protocols established by the operator’s
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or platform provider’s internal controls in accordance with the administrative rules.
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(3) Testing will be performed on a secure and separate VPN identified only for the purposes of
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the limited testing.
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(4) The purpose and scope of the limited testing must be documented, and sufficient records of
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all testing must be maintained.
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(5) The production environment is used only for the purposes of the limited testing.
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(6) The test case must have a specific open and ending time which must be reasonable to the
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amount of time needed to perform testing. As an alternative, the operator or platform provider
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must closely apprise the board of testing open and ending times.
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(7) The production environment used for limited testing must not have any external or public
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exposure.
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(8) The operator or platform provider must have strict procedures in place to ensure that the
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production environment used for limited testing does not have any external or public exposure.
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(9) On completion of testing, all test data must be properly identified and segregated or deleted
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from the production environment.
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This allowance shall have no bearing on the MGCB’s decision to grant or deny an applicant’s
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request for a license. In the event an applicant does not receive a license for any reason, the
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MGCB assumes no liability.
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Branding Requirements
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Q: What are the branding requirements for internet gaming?
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A: Sec. 4(7) of the Lawful Internet Gaming Act, MCL 432.304(7), states: “An internet gaming
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operator may offer internet gaming under a maximum of 2 separate brands, 1 for each of
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interactive poker and other casino style games. This subsection does not prohibit an internet
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gaming operator from using fewer than 2 brands or from using a single brand to offer any
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combination of interactive poker or other casino style games. Only an internet gaming operator
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or its internet gaming platform providers may process, accept, or solicit internet wagers under
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this act. All websites and corresponding applications used to offer internet gaming must clearly
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display the brand of the internet gaming operator or its affiliate. The internet gaming operator
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may also elect, in its sole discretion, to have the brand of each internet gaming platform that it
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utilizes be the name and logos or no more than 1 internet gaming platform provider if the
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internet gaming platform also clearly displays the internet gaming operator's own trademarks
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and logos or those of an affiliate. The internet gaming operator is responsible for the conduct of
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its internet gaming platform provider.”
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Q: What are the branding requirements for internet sports betting?
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A: Sec. 4(7) of the Lawful Sports Betting Act, MCL 432.404(7), states: “A sports betting operator
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may use no more than 1 internet sports betting platform to offer, conduct, or operate internet
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sports betting. Only a sports betting operator or its internet sports betting platform provider may
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process, accept, offer, or solicit internet sports betting wagers. The sports betting operator must
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clearly display its own brand or that of an affiliate on the internet sports betting platform that it
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utilizes. The sports betting operator may also elect, in its sole discretion, to have the brand of
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the internet sports betting platform that it utilizes be the name and logos of no more than 1
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internet sports betting platform provider if the internet sports betting platform also clearly
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displays the sports betting operator's own trademarks and logos or those of an affiliate. A sports
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betting operator is responsible for the conduct of its internet sports betting platform provider.”
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Q: The acts establish requirements for the branding of internet gaming and internet
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sports betting platforms. What does the platform include?
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A: The platform is the integrated system of hardware, software, applications, including mobile
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applications, and servers through which an operator operates, conducts, or offers internet
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gaming or internet sports betting. The platform generally includes all mobile applications and
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websites used to offer internet gaming or internet sports betting to authorized participants.
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Operator Branding
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Q: What brand must be displayed on each platform?
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A: The operator’s own brand or that of an affiliate must be clearly displayed on each platform.
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This applies regardless of whether the operator elects to include the name and logos of its
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platform provider on the platform.
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Q: Who is an affiliate?
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A: An affiliate is a person that, directly or indirectly, through one or more intermediaries, controls
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or is controlled by an operator.
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Q: What is considered the operator’s own brand or that of an affiliate?
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A: This includes the operator’s or its affiliate’s own name and any trademarks or logos
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registered to or owned by the operator or its affiliate. Names, trademarks, and logos owned by a
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person other than the operator or its affiliate are not considered the operator’s or its affiliate’s
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own brand, regardless of whether the operator or its affiliate has acquired the rights to use such
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names, trademarks, and logos.
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Q: How must the operator’s or its affiliate’s own brand be displayed on each platform?
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A: The operator’s or its affiliate’s own brand must be clearly displayed on each platform,
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including on all mobile applications and websites used to conduct internet gaming or internet
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sports betting. The operator’s or its affiliate’s brand must be distinctive, prominently featured,
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and obvious and visible to the authorized participant.
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Platform Provider Branding
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Q: Can the operator also display its platform provider’s brand on the platform?
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A: Yes. At the operator’s discretion, the name and logos of no more than one platform provider
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may be displayed on each platform. However, each platform must also clearly display the
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operator’s or its affiliate’s own brand.
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Q: What constitutes a platform provider’s name and logos?
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A: Any name and logos the platform provider owns or otherwise has the right to display on the
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platform.
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Q: Can the names and logos of multiple platform providers be displayed on a single
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platform?
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A: No. Each platform may display the name and logos of no more than one platform provider.
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Q: If a platform provider owns or possesses the rights to use multiple names, can more
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than one platform provider name be displayed on a single platform?
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A: No. One platform provider name may be displayed on each platform.
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Separate Branding
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Q: Can an operator use separately branded mobile applications or websites to connect to
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the same platform?
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A: No. Each platform, inclusive of any mobile applications and websites, is limited to a single
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brand. That brand must clearly include the operator’s or its affiliate’s own brand and may also
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include the name and logos of no more than one platform provider.
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Q: Can different brands be used to offer internet gaming?
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A: Yes. If an operator utilizes separate platforms for interactive poker and other casino-style
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games, each platform may, at the operator’s discretion, display a different brand. The brand of
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each platform, including any mobile applications and websites, must clearly include the
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operator’s or its affiliate’s own brand and may include the name and logos of no more than one
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platform provider.
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Q: How many separately branded platforms can an operator use?
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A: An operator can utilize a maximum of three separately branded platforms – one internet
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sports betting platform, one internet gaming platform used to conduct interactive poker, and one
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internet gaming platform used to conduct other casino style games. Each platform may display
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a different brand, subject to the branding requirements outlined above.
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Authorized Participant Accounts
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Q: May operators and platform providers launch applications in the various app stores
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prior to go live where authorized participants may download the app and create accounts
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but would not be allowed to place any wagers until board approval is granted to launch?
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A: Yes, provided the accounts are created in accordance with Part 5 of the internet sports
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betting and/or internet gaming administrative rules, as applicable, and operators and platform
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providers follow know your customer requirements. The board provides no guarantees
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regarding licensing or any other necessary approval to launch.
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Q: Can an operator or platform provider allow authorized participants to deposit funds to
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their accounts prior to go live provided that no wagers will be placed or accepted until
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the operator or platform provider receives board approval to launch?
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A: Yes, subject to all of the following conditions:
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(1) An authorized participant must establish an account before making a deposit. The account
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must be created in accordance with Part 5 of the internet sports betting and/or internet gaming
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administrative rules, as applicable, and the operator or platform provider must follow know your
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customer requirements.
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(2) The operator or platform provider must comply with all applicable provisions of the internet
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sports betting and/or internet gaming administrative rules.
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(3) The operator or platform provider and its payment processors must comply with applicable
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state and federal law.
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(4) The operator or platform provider must maintain sufficient records of all deposits.
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(5) Authorized participants must be prevented from placing wagers until the operator or platform
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provider is approved by the board to launch. The board provides no guarantees regarding
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licensing or any other necessary approval to launch.
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Advertising
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Q: Can an operator and/or platform provider advertise its internet gaming and/or internet
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sports betting products in Michigan?
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A: Yes. Advertising, both before and after launch, is allowed. An operator or platform provider
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does not need a license from the board to conduct advertising. The board provides no
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guarantees regarding licensing or any other necessary approval to launch.
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Q: What requirements apply to internet gaming and internet sports betting
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advertisements?
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A: Under the administrative rules and related technical standards, internet gaming and internet
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sports betting advertisements cannot target self-excluded individuals. Advertisements directed
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to the general public at large are not considered advertisements that target any specific
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individuals, including those that may be self-excluded.
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Q: Are there branding requirements for advertisements?
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A: No. The statutory branding requirements, which are outlined above, apply to platforms only.
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There are no branding requirements for advertisements.
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Q: Are there any restrictions on the methods that can be used for internet gaming and
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internet sports betting advertisements?
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A: There are no restrictions on the methods that can be used to advertise internet gaming and
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internet sports betting, subject to both of the following: (1) advertisements must not target selfexcluded individuals; and (2) a marketing affiliate licensed or registered by the board must not
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promote or market illegal online gaming sites to individuals located in Michigan. Advertising can
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be conducted via both traditional methods and social media.
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Q: Is board approval of advertisements required?
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A: No. Board approval of internet gaming and internet sports betting advertisements is not
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required.
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Q: A social media platform or other publisher has requested confirmation from the board
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that a specific operator and/or platform provider is allowed to advertise, and that board
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approval is not required. Can the board provide this confirmation?
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A: Yes. Please email the request to hicksd8@michigan.gov.
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Q: Are advertisers required to be licensed or registered with the Board?
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A: If the advertiser is an affiliate marketer and has an agreement based on the sharing of customer
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revenue, it must be licensed as a supplier. Affiliate marketers that do not have an agreement
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based on the sharing of customer revenue must register with the Board as a vendor. “Affiliate
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marketer” means a person involved in promoting, marketing, and directing business to online
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gaming sites who is compensated based on the volume of customer referrals to an online gaming
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site or customer activity, including but not limited to, number of registrations, number of depositing
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registrations, or wagering activity, or both.
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An advertiser, who is not an affiliate marketer, is not required to register if it provides less than
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$100,000 worth of goods or services, or both, to any internet gaming/sports betting operator
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(operator) or internet gaming/sports betting platform provider (platform provider) in connection
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with its Michigan operation in a calendar year.
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An advertiser, who is not an affiliate marketer, must register as a vendor if it provides more than
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$100,000 worth of goods or services, or both, to any operator or platform provider in connection
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with its Michigan operation in a calendar year. This applies to media buying agents and
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advertisers who have contractual relationships with an operator or platform provider. This does
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not apply to media outlets and other advertisers providing goods or services through a media
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buying agent.
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Bonuses and Promotions
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Q: Can an operator or platform provider conduct internet gaming and/or internet sports
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betting bonus and promotional wagering offers?
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A: Yes. An operator or platform provider may conduct internet gaming and/or internet sports
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betting bonus and promotional wagering offers. This includes any bonus or promotion that
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involves internet wagers, internet sports betting wagers, internet wagering accounts, and/or
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internet sports betting accounts. Examples may include, but are not limited to:
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• Deposit bonuses.
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• Risk free wagers.
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• Loss refunds.
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• Promotional odds or lines.
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• Free wagers.
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• Promotional drawings or raffles that involve internet wagers, internet sports betting
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wagers, internet wagering accounts, and/or internet sports betting accounts (e.g., if an
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authorized participant is required to have an internet wagering or internet sports betting
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account to participate; if an authorized participant must conduct internet wagers or
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internet sports betting wagers to earn entries; if an authorized participant can win
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money, free play, or any other representation of value that will be deposited into their
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internet wagering or internet sports betting account; etc.).
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Q: What requirements apply to internet gaming and/or internet sports betting bonus and
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promotional wagering offers?
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A: Internet gaming and internet sports betting bonus and promotional wagering offers must
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adhere to recordkeeping and operational requirements prescribed in the administrative rules
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and related technical standards. See R 432.649(2)-(4) and R 432.749(2)-(5). These
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requirements apply to all bonus and promotional wagering offers conducted after an operator or
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platform provider launches internet gaming and/or internet sports betting in Michigan. In
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addition, any bonus and promotional wagering offers initiated before launch that will be
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completed after launch or will otherwise impact regulated internet gaming and/or internet sports
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betting are expected to meet these requirements (e.g., if an authorized participant will receive
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funds, free play, etc. once internet gaming and/or internet sports betting go live).
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Please note that any bonus or promotional wagering offer that impacts or involves land-based
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casino gaming at a Detroit casino may be subject to requirements of the Michigan Gaming
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Control and Revenue Act and related rules.
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Q: Can an operator or platform provider conduct a bonus or promotion that does not
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involve internet wagering and/or internet sports betting wagering?
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A: Bonuses and promotions that do not involve internet wagers, internet sports betting wagers,
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internet wagering accounts, and/or internet sports betting accounts are outside the scope of the
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Lawful Internet Gaming Act (LIGA), Lawful Sports Betting Act (LSBA), and related administrative
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rules. Non-wagering bonuses and promotions are not regulated by the board under the LIGA,
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LSBA, and related rules and generally are not subject to the requirements outlined above.
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Operators and platform providers are responsible for ensuring that non-wagering bonuses and
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promotions comply with all applicable laws and regulations (e.g., the Michigan Penal Code). In
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addition, operators and platform providers must maintain records of all non-wagering bonuses
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and promotions and provide such records to the board on request.
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Please note that any bonus or promotion that impacts or involves land-based casino gaming at
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a Detroit casino may be subject to requirements of the Michigan Gaming Control and Revenue
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Act and related rules.
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Q: Can an operator or platform provider conduct a promotional drawing or raffle?
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A: Yes. An operator or platform provider can conduct a promotional drawing or raffle that
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involves internet wagers, internet sports betting wagers, internet wagering accounts, and/or
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internet sports betting accounts. Such drawings and raffles are regulated by the board under the
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LIGA, LSBA, and related rules and are subject to the requirements outlined above.
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Non-wagering promotions involving a drawing or raffle are not regulated by the board under the
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LIGA, LSBA, and related rules, as stated above.
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Q: Is board approval of bonuses and promotions required?
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A: No. Board approval of internet gaming and internet sports betting bonuses and promotions is
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not required.
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Tournaments and Contests
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Q: What requirements apply to internet gaming and internet sports betting tournaments
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and contests? Is board approval required?
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A: Tournaments and contest must adhere to recordkeeping and operational requirements
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prescribed in the administrative rules and related technical standards. While board approval is
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not required, an operator or platform provider must file written notice with the board prior to the
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first time a tournament or contest type is conducted. An operator or platform provider may file a
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master tournament list with the board to satisfy this requirement.
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Geofencing
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Q: Are licensed operators and their platform providers required to use geofencing
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technology to block wagers initiated by individuals physically located in any geographic
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areas within the state of Michigan (e.g., Indian land)?
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A: The Lawful Internet Gaming Act and Lawful Sports Betting Act provide that wagers must be
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initiated and received or otherwise made by an authorized participant located in the state of
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Michigan or, for internet sports betting or internet poker only, another jurisdiction in the United
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States authorized by a multijurisdictional agreement entered into by the board. The acts do not
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restrict locations within the state of Michigan from which wagers may be accepted by a licensed
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operator. Licensed operators and their platform providers may accept wagers from individuals
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located anywhere within the geographic boundaries of the state of Michigan, including on Indian
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land, unless otherwise provided in applicable federal law. See Geofencing Specifications
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(Technical Bulletin 2020-01) for more information on geofencing specifications and
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requirements.
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Internet Gaming and Internet Sports Betting Conducted Exclusively
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on Indian Lands
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Q: Can an Indian tribe conduct internet gaming and/or internet sports betting exclusively
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on Indian lands that is not subject to the Lawful Internet Gaming Act and/or Lawful
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Sports Betting Act?
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A: Yes, provided each wager meets applicable criteria for exemption, including: (1) the
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individual who places the wager is physically present on Indian lands when the wager is
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initiated; (2) the wager is received or otherwise made on equipment that is physically located on
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Indian lands; and (3) the wager is initiated, received, or otherwise made in conformity with the
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safe harbor requirements described in 31 USC 5362(10)(c). If the wager is initiated through an
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internet wagering account or internet sports betting account and received on an MGCBapproved internet gaming platform or internet sports betting platform, the tribe will have to use
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MGCB-approved methods (such as an audit trail from a licensed geolocation service provider)
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to validate that the wager is exempt from the Lawful Internet Gaming Act or Lawful Sports
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Betting Act. Exempt wagers can be deducted or otherwise excluded from the payments a tribe
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makes under those acts.
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Responsible Gaming Databases
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Q: Has MGCB developed the responsible gaming databases yet?
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A: Yes. For questions regarding the responsible gaming databases and distribution to operators
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and platform providers, please contact Sandra Johnson at johnsons56@michigan.gov.
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Updated May 12, 2022 |