Michigan state Rep. Brandt Iden is working on the seventh draft of a sports betting bill that could be introduced soon after the July 11 deadline for feedback from stakeholders. A similar bill nearly passed last year but former Governor Rick Snyder vetoed it shortly before leaving office.
The 22-page draft provides the statutory framework for legalizing sports betting in Michigan; the Michigan Gaming Control Board would finalize regulations. The bill would allow the three Detroit casinos and 20-plus tribal casinos to operate brick-and-mortar sportsbooks and also allow online/mobile sports betting within the state.
Detroit casinos would pay $200,000 for an initial sports betting license with a $100,000 renewal fee. A management services provider license would cost $50,000 annually and a supplier’s license would cost $5,000 annually. Casinos would be allowed to contract with a sports betting management company and with one digital sports betting platform provider.
Players would be allowed to open sports betting and online gaming accounts remotely.
The legislation requires the use of official league data for in-game wagering.
The current draft sets the tax rate for sports betting revenue at 8 percent. Iden said he’s willing to raise that to 10 percent, and Governor Gretchen Whitmer wants a 15 percent tax rate. Observers expect a tax rate somewhere in the middle.
The sports betting bill only could become law if two other pieces of gaming legislation also pass and are signed by the governor. Those are HB 4311, the Michigan Lawful Internet Gaming Act, and HB 4308, which would regulate daily fantasy sports gambling. Under HB 4311, tribal casinos could offer online gambling.
Besides Whitmer’s desire for a higher tax rate on sports betting, she also opposes including online slots. She has expressed concern that online gaming would impact the state’s online lottery program and reduce revenue directed to the state’s School Aid Fund.
