The Michigan House of Representatives reportedly passed a series of measures on Wednesday that could eventually lead to the state becoming the latest to legalize a full range of sportsbetting, fantasy sports and online gambling activities.
According to a report from the Detroit Free Press newspaper, the proposed legislation dealing with sportsbetting, which is known as House Bill 4916, was passed by the 110-member body via a vote of 63 to 45 and is to now set to join its compatriots in facing similar consideration before the Michigan State Senate. Should it subsequently be ratified and signed into law by Governor Gretchen Whitmer (pictured), the measure would purportedly institute an 8.75% tax on all net sports wagering revenues while additionally levying a 3.25% duty on all such bets placed inside any of Detroit’s three casinos.
Brandt Iden from the Michigan House of Representatives is reportedly one of the leading figures in the campaign to bring sportsbetting to Michigan and he told the Detroit Free Press that the Midwestern state could expect to reap annual tax revenues of around $30 million from sports wagering based on estimated first-year aggregated revenues of about $225 million. The Kalamazoo Republican also purportedly detailed that the legislation would make the jurisdiction an attractive market for operators as its proposed levy would be the second lowest in the United States behind only Nevada’s 6.75% and well below the 51% currently accessed by officials in Rhode Island.
Michigan Representative, Michael Webber, reportedly told the Detroit Free Press…
“More than a dozen states including some of our neighbors in the Midwest have already legalized sportsbetting and have reaped the benefits. If Michigan follows suit, we could generate another revenue source for vital public services and improving our school systems.”
For its part, The Detroit News cited a story from the Associated Press news service in explaining that the measure on online gambling passed through the Michigan House of Representatives via a 62 to 44 margin and calls for the institution of a phased revenue-dependant tax structure that would start at 4% before eventually topping out at 23%. The newspaper reported that this legislation would moreover impose an extra 3.25% duty on all wagers placed through the trio of Detroit casinos and could combine with the other pieces to add an extra $100 million to the state’s coffers every year.
However, all of these measures have been criticized by Whitmer due to concerns that their attached tax rates are not high enough and may lead to less money for the state’s lottery, which helps to support the School Aid Fund. The Democratic Governor has purportedly proposed 12% levies for both sportsbetting and fantasy sports alongside suggesting that the Michigan online gambling duty be set at 2% to 19%.
Gubernatorial spokesperson, Tiffany Brown, reportedly told The Detroit News that 48-year-old Whitmer ‘continues to have revenue concerns regarding the bills’ negative impacts on the School Aid Fund’ and now intends to continue working ‘closely with the bill sponsor, tribal leadership and stakeholders’ to address her concerns.