Michigan Attorney General Jennifer M. Granholm has been an outspoken critic of Internet gambling, and the state’s highest ranking criminal justice officer has another ally in her fight against the business.
Annette M. Bacola, Michigan’s Racing Commissioner, had some harsh comments today aimed right at the interactive gaming industry. Bacola believes what she calls an "illegal" industry is killing the law-abiding horse racing industry in her state.
"The dynamics of the horse racing industry have evolved rapidly over recent years," she said. "With the advent of the Internet, pari-mutuel wagering has become a business of interactive data processing. In order to regulate this recent transformation, the Office of Racing Commissioner (ORC) is investigating a course of enforcement against the illegal use of telephone and Internet account wagering that is responsible for eroding racetrack revenues across the state."
Operators from all over have already seen injunctions against them from Granholm’s office. The injunctions were brought up against anyone who was accepting wagers from Michigan residents via the Internet or telephone.
Not only has the Granholm tried to put an end to Internet and phone betting, but the ORC is looking at ways to help its tracks compete better economically.
"The economic impact on Michigan's seven pari-mutuel racetracks during 2000 is unknown because there is no mechanism in place to track the illegal wagering that is occurring," Granholm said.
According to her office, in 2000, the tracks presented a combined 2,308 days of live and simulcast pari-mutuel racing. Racing attracted over 1.5 million fans, which wagered $399.3 million, generating over $12.4 million in state wagering tax revenue. This represents a 4 percent decrease in total handle compared to the 1999-racing season.