The Michigan online gaming market will have another member after Gaming Realms (GR) was approved for a full iGaming license by the Michigan Gaming Control Board (MGCB). The full license adds to a provisional license granted at the beginning of the year.
GR licenses unique and exciting games to operators in the mobile gaming space, and the new license in Michigan adds to its existing licensed operations in New Jersey and Pennsylvania. Owner of the well-known Slingo brand, the company develops unique bingo/slots-style games for partners across the globe.
As the originator of the Slingo format, GR licenses variations of the format, as well as other game formats. The company is naturally focused on its unique Slingo format, which combines slots and bingo into a game where players spin a slot wheel to mark off numbers on a bingo-like grid.
In January 2021, the company acquired a provisional supplier license in Michigan and has now moved on to the next step with a full license. The full license now authorizes the provider to market its games to Michigan operators.
GR is in the process of approval in the huge opening market of Ontario, Canada just to the north of Michigan. With a 35% increase for content licensing revenue in Q3 2021 already under its belt, GR will be looking to increase that with greater exposure now in Michigan.
Detroit gets “hold harmless” funds
In other Michigan gaming news, the MGCB handed out some money to Detroit this month, as a result of a statutory requirement in the Michigan gaming laws.
The Lawful Internet Gaming Act of Michigan provides for a “hold harmless” payment to cities that don’t achieve a certain level of revenue over a year.
In this case, the COVID crisis of 2020 caused significant reductions in casino traffic as a result of pandemic restrictions, and that translated into lost revenue for Detroit casinos. Because of the “hold harmless” provision, the MGCB was required to pay $40.5 million to the city to compensate for the lost revenue.
A hold harmless clause generally indemnifies one party from risks associated with acts by the other party. Often used in construction contracts, the clause, in this case, mandates a minimum level of income from gaming for cities in the event of a drop in wagering tax revenue.
According to the executive director of the MGCB, Henry Williams, “a provision in the 2019 Lawful Internet Gaming Act calls for a 'hold harmless’ payment to the city if wagering tax revenue drops below the statutory minimum of $183 million for any reason during the preceding city fiscal year.”
Williams added that “the Detroit casinos experienced a revenue drop during 2020 and early 2021 because of COVID-19-related shutdowns and capacity limits, which reduced wagering tax and development agreement payments. The provision took effect because of an unusual set of circumstances caused by the casinos’ closings and reduced capacity due to COVID-19 health concerns.”
The $40.5 million payment was announced by the MGCB in late October.
