Michigan state Rep. Brandt Iden says he will introduce another sports betting bill to the state legislature in August with modifications designed to meet concerns form opponents including the state’s governor.
Speaking to Legal Sports Report at the National Council of Legislators from Gaming States (NCLGS) summer meeting in Minneapolis, Iden said he believes this bill will finally receive approval.
The bill Includes:
Fees of $200,000 for an initial sports betting license renewable annually for $100,000, $50,000 for a skins license and $5,000 for a supplier.
A tax rate of 8 percent on adjusted gross sports betting receipts.
The state Division of Sports Betting must finalize rules within one year of bill enactment.
Sports governing bodies can request to prohibit wagers by event or type.
The regulator determines whether official league data is necessary and appropriate to decide the results of in-play wagers.
The bill will also cut the number of permitted online sports betting sites by two-thirds. Previously, the 12 gaming tribes and three commercial casinos could have partnered with a management services provider to offer up to three branded online sports betting platforms. The latest draft limits them to one.
Michigan Governor Gretchen Whitmer has sanctioned an analysis by the Michigan Department of Treasury that recommended a 15 percent tax rate on sports betting and a tiered initial licensing fee.
Iden, however, said that there is room to work with the administration on the tax figures.
“My position continues to be that, even if the iGaming tax rate changes—which the likelihood is that it will be increased—the sports rate has to stay low in order for it to be competitive,” Iden said. “There just isn’t a tremendous amount of revenue in sports betting. It’s important that we keep that low, and the administration needs to understand that for it to be successful, it has got to be low.”
Iden said he expects the legislature to focus on the state’s budget and that he doesn’t expect the bill to move forward until at least October.
