Michigan Online Gambling Bill Dead on Arrival? State Transparency Laws Lacking

Written by:
Guest
Published on:
May/15/2016

  • Michigan ranks dead last among states transparency laws 
  • Campaign finance system has more holes that a Michigan highway following a spring thaw
  • State casinos, tribes not on board with SB 889
  • Senator’s office confident online gambling bill will become law this year

The Detroit Free Press’ Paul Egan broke the story late Saturday that Michigan state Senator Mike Kowal’s wife currently works for the lobbying firm that is pushing her husband’s online gambling bill.

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Kowal says there is no conflict of interest because his wife, lobbyist Eileen Kowall, is not working directly on the project. (for laptop users, the couple is pictured above)

This news shouldn’t surprise anybody familiar with the shenanigans in Michigan politics.

Craig Mauger, executive director of the Michigan Campaign Finance Network, told the Detroit Free Press that this case brings the state’s lack of clear conflict of interest laws for lawmakers to center stage. In fact, Michigan ranked last in a national study that examined state ethics and transparency laws.

"We often don't know when things like this are happening," Mauger told the paper. "On its face, a lawmaker's spouse lobbying for an entity that is working with a lawmaker, that does seem to be a conflict," and "this is probably an issue that he should have kept his hands off."

The campaign finance system here has more holes than I-94 after a spring thaw, wrote Chris Andrews of Public Integrity back in 2013.

He noted that the lobby law makes it close to impossible to determine which companies were spending millions to oppose construction of a new bridge in the state thanks to a financial disclosure system for elected officials that does not exist. 

“It appears we’re living with an honor system in an environment where there isn’t much honor,” said Rich Robinson, executive director of the Michigan Campaign Finance Network, a nonpartisan watchdog group that tracks campaign spending and lobbying records.

Up until this weekend, the Michigan online poker bill - SB 889 – looked like it had the best chance of passing since New Jersey was the last – and only the third – state to legalize Web gambling within its borders.

Dustin Gouker of USPoker.com had doubts about the potential passage of SB 889 prior to the Detroit Free Press story.

The general feeling after a hearing held earlier this month was that there were quite a few unanswered questions on varying fronts.

“Most concerning was the absence of tribal gaming’s support, and the neutrality of commercial casinos.  The fact that the casinos are not yet 100% on board would seemingly lead to problems for the bill,” Gouker writes.

Kowal’s office painted a positive picture of his bill’s likelihood of becoming law.

“I don’t see why [the bill] wouldn’t go through this year,” Dave Biswas, chief of staff and legislative director for Sen. Kowall, told CardPlayer.com this past week.

The Detroit Free Press revelations could change all that.

- Ace King, Gambling911.com

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