Michigan Sports Betting, iGaming Bills Pass Through House

• MI HB 4916 would legalize online and land-based sports betting at Michigan’s tribal casinos and three commercial casinos in Detroit.
• Michigan Governor Gretchen Whitmer has doubts on the package of gaming bills due to potential lost revenue from the state’s iLottery platform.
• The Michigan sports betting bill along with the package of other online gaming bills passed through the state House with 63-45 and 62-44 votes.

LANSING, Mich. – On Wednesday, the Michigan House of Representatives definitively passed a package of iGaming and sports betting bills with bipartisan support.

MI HB 4916, which would legalize sports betting in Michigan along with online casino games, was voted out of the House by a 63-45 then 62-44 margin.

The package of bills will now make their way to the Senate. If that legislative chamber favors the bills as well, HB 4916 will go to Michigan Gov. Gretchen Whitmer’s desk for final approval or veto.

At this moment, it seems as though the second option may be more likely. The governor’s office is still not on board, despite several amendments made when the bills passed through the House Ways and Means Committee on Tuesday.

“We continue to have revenue concerns regarding the bills’ negative impacts on the School Aid Fund,” said Tiffany Brown, a spokeswoman for Gov. Whitmer. “The administration has taken every meeting we’ve been invited to regarding this legislation and will continue to work closely with the bill sponsor, tribal leadership and stakeholders to attempt to address our concerns.”

Amendments made to the bills included raising the tax rate on sports betting operators’ revenue from 8% to 8.75%. Detroit casinos would have to pay an additional 3.25% tax on top of any Michigan sports betting revenue they pull.

The tax rate for iGaming revenue would be more varied. Depending on the operator’s revenue, iGaming would be taxed at a rate between 4% to 19% during the first three years. That range would increase over time, and by year five and beyond iGaming would be taxed between 8% to 23%.

Detroit casinos would again have to pay an extra 3.25% in local taxes on top of whatever rate the state demands.

“The tax rate went north. We got her more than half of what she asked for on both internet gambling and sports betting,” said Rep. Brandt Iden, sponsor of MI HB 4916 to The Detroit News.

 

“The money was directed to the school aid fund. My directive, from what I had always heard, was ‘protect the school aid fund.’ I believe these bills did that. So it’s very confusing to me when the governor says they’re not in support.”

Iden was able to get a similar package of bills sent to former Gov. Rick Snyder’s office last year. Snyder eventually vetoed any piece of legislation that had to do with gaming expansion in Michigan due to related concerns that Gov. Whitmer has this year.

The Michigan sports betting bills can still be changed in the state Senate and sent back to the House for concurrence before being sent to Gov. Whitmer’s office. State lawmakers will have to act fast, as the 2019 legislative session is quickly winding down.

News tags: Brandt Iden | Detroit | Gretchen Whitmer | Michigan | Michigan House of Representatives | Rick Snyder