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A new bill introduced in the Michigan House would expand background check requirements and regulatory oversight for individuals working in the Michigan sports betting industry.
House Bill 5833, introduced April 21 and referred to the Committee on Regulatory Reform, proposes amendments to the Lawful Sports Betting Act aimed at tightening licensing standards and strengthening monitoring of employees and operators.
Expanded background check requirements
The bill broadens the scope of who must undergo criminal background checks as part of the licensing process.
Under the proposed language, “a person applying for or holding a sports betting supplier license or occupational license issued by the board shall consent to inspections, criminal history record checks, searches and seizures” as required by regulators.
Applicants would also be required to submit fingerprints, photographs, and other identifying information to the Michigan Gaming Control Board.
Additionally, the board would have explicit authority to conduct background checks not only on licensees, but also on “board employees or prospective board employee to carry out the board’s
statutory powers and responsibilities under this act and rules promulgated under this act.”
Ongoing monitoring through fingerprint systems
Beyond initial background checks, the bill establishes continuous monitoring of individuals through fingerprint tracking systems.
Fingerprints submitted as part of the licensing process would be stored in state and potentially federal databases. The Michigan State Police would maintain those records in a system that provides “automatic notification if new criminal arrest information matches fingerprints previously submitted.”
If a match occurs, law enforcement agencies are required to immediately notify the MGCB.
The bill also allows for participation in the FBI’s notification system, which similarly alerts authorities if an individual is arrested after their initial background check.
Clarifies which roles require scrutiny
HB 5833 also defines which employees qualify for occupational licensing requirements, focusing on positions with significant influence over sports wagering operations.
These include individuals who supervise sports traders, and sports traders themselves, employees with access to “critical components of an internet sports betting platform,” and department heads in areas such as fraud, trading, technology, and finance.
The bill further extends oversight to executives and owners tied to sports wagering suppliers, including those with more than a 5% ownership stake or those who “directly or indirectly control the applicant.”
Focus on regulatory oversight
The proposed changes do not alter how sports wagering operates for consumers; instead, it focuses on strengthening regulatory control behind the scenes.
By expanding background checks and implementing ongoing monitoring, lawmakers appear to be aiming to ensure integrity and accountability across Michigan’s growing sports wagering industry.
The MGCB is one of the more aggressive regulatory bodies of maintaining integrity and accountability among its regulated industry.
