Michigan Approves Bill to Legalize Sports Betting and Online Gambling
The House of Representatives in Michigan Approves Bill to Legalize Sports Betting and Online Gambling. Furthermore, the bill also legalizes fantasy sports gambling and made it thru the House of Representative in a 63-45 vote.
According to PPH Sportsbook News, the only thing missing to make sports betting legal in Michigan is the Governor’s signature. However, at the moment an agreement worth Michigan Governor Gretchen Whitmer has not yet been made.
The Michigan sports betting bill place an 8.75 tax on sports betting and a 3.25% tax on casinos in Detroit. Furthermore, it will also place an initial 4% tax on online sports betting and gradually increase to 23%. According to State Representative Brandt Iden, legal sports betting could generate up to $30 million in revenue for the state.
Michigan Approves Bill to Legalize Sports Betting but one Obstacle Remains
At the moment, the main obstacle that remains in order to make the law official is Gov. Whitmer. Her main dissatisfaction with the Sports Betting bill is that she believes an 8.75% tax is too low. A Whitmer’s spokeswoman said “We continue to have revenue concerns regarding the bills’ negative impacts on the School Aid Fund,”.
However, Whitmore is willing to work in making the bill pass and will work with them “to attempt to address our concerns”.
In addition, the governor has concerns over the impact on the state lottery. This is because the state lottery supports the School Aid Fund and legal sports betting could take away from it. Therefore, she wants to see a 12% tax rate on sports betting and fantasy sports. Her opinion on the online gambling is that 2% to 19% is acceptable.
If the Sports Betting bill passes as is, then Michigan would have the second lowest tax rate after Nevada (6.75%). Those looking to become a legal bookie in Michigan are of course hoping to see a lower tax in Michigan.
Iden said tat he feels disappointment that Whitmer is trying to kill the bill. This is because a lot of effort was put into it and the Governor had plenty of opportunities to give them feedback. However, she told them that “she was too busy to engage with them [us]”.