After a year of negotiations, the Senate passed Michigan sports betting and gaming bills – HB4916 and HB4311. Indeed, 35 lawmakers voted for the bill, and only 3 voted against it. These bills will legalize sports betting and online gaming passing into law in Michigan. We can expect Gov. Gretchen Whitmer to sign the Michigan sports betting legislation next week.
Michigan Sports Betting and Gaming bills
Michigan would soon join 17 other states including New Jersey, Pennsylvania, and Iowa that has legalized some form of sports betting. Under the bills, the casinos could not only have onsite sports betting operations but also offer online sports betting platforms to solicit wagers.
Eventually, the Michigan sports betting and gaming bills would allow for in-game, online proposition bets that cover subjects outside of just the basic outcome of a game. If legislation allowing sports betting and online gaming gets up and running in time, sports fans in Michigan will be able to bet on basketball games in time for March Madness. Very soon, sports fans in Michigan will be able to place bets on leagues and games such as NBA, NHL, NFL, Soccer, Basketball, Baseball, Hockey, Golf, and many more.
Rep. Brandt Iden said: “The Big Ten Tournament, March Madness is a huge revenue opportunity for us. People are going to go down (to Indiana) and place their bets. I want to be able to take that money here in Michigan as well.”
Michigan Senate also passed a bill to legalize and regulate Daily Fantasy Sports. The Fantasy Contests Consumer Protection Act will regulate the conduct of fantasy sports. The initial license and annual fee are smaller for DFS, which allows smaller DFS operators to participate. Not to mention, DraftKings and FanDuel are already operating in the state.
Details of Michigan Sports Betting and Gaming bills
iGaming bill is easier to accept as the taxes and fees are more favorable to the industry. According to the bills here is complete information about the fee, taxes, rules, and regulations.
- A sports betting operator cannot use more than one internet sports betting platform.
- Michigan’s 3 commercial casinos and 23 tribal casinos may offer sports betting, pending licensure.
- There is a fee of $50,000 for an initial application to offer sports betting. Furthermore, operators need to pay $1000,000 for the license and $50,000 annually.
- The majority of state tax revenue from sports betting supports the School Aid Fund.
- Annually, $2 million is used to help firefighter’s underdog cancer treatments – First Responder Presumed Coverage Fund.
- The state collects an 8.4 percent tax on sports bets after they pay out the winnings. However, commercial casinos pay an additional 25%city tax to Detroit, which legislators say is effectively 3.25%.
- Money given to customers for free-play promotions may be deducted from the gross receipts before taxes are levied.
- For in-play wagers, operators should mandatorily use official league data. Whereas, they can convince the Michigan Gaming Control Board if the board does not offer data at commercially reasonable terms.
- In the future, if federal law allows, the board may enter into agreements with other jurisdictions to offer multi-state sports betting.
The next step is Governor’s approval to pass the Michigan sports betting and gaming bills. Governor is on board with the changes made in the Senate. Senate Hertel mentioned that members of the administration took part in meetings to agree on gaming package terms that Whitmer would support.
Tiffany Brown, a spokesperson for Gov. Whitmer, said: “The governor is glad about the progress made on gaming over the course of this year. Particularly once Sen. Hertel and Rep. [Rebekah] Warren were able to engage and resolve key issues to get this package across the finish line. This is a good, bipartisan solution made possible by working together on a complex issue. Indeed, Governor looks forward to closely reviewing this package once it hits her desk.”
Once Gov. Gretchen Whitmer signs the legislation into law, the Michigan Gaming Control Board will set rules and regulations for casino operators in Michigan.