Governor Signals Per-Bet Sports Tax in Michigan
Highlights
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Governor Gretchen Whitmer plans to implement the same pre-bet tax structure that was passed by the Illinois assembly last year.Â
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A former Michigan representative expressed concerns over the governor’s decision.
Lawmakers included the pre-wager tax on sports betting in the budget proposal on Wednesday. This means Michigan would become the second state in the United States to implement such a tax scheme, after Illinois. These increased gambling tax collections aimed to enhance medical funding.Â
According to the governor, this tax move could raise around $39 million annually. An online sportsbook has a 25% tax liability on each bet, with a cap of up to 20 million wagers per year, followed by a 50% tax cut to be incorporated thereafter.Â
The previous year, Illinois lawmakers approved a similar pre-bet fee structure. However, the Illinois Gaming Board reports a 15% drop in wagers post the scheme came into effect.Â
The governor’s s proposed budget also includes other forms of gambling tax hikes, including an 8% tax increase on online casino revenue above $185 million and a cut to the promo deduction, which could generate an extra $21 million in sportsbooks.Â
Brandt Iden, a former Michigan representative, is currently the vice president of Government affairs at Fanatics Betting & Gaming, and was not convinced by the new policy draft.Â
For the full News Story, Read Here!
According to the governor, this tax move could raise around $39 million annually. An online sportsbook has a 25% tax liability on each bet, with a cap of up to 20 million wagers per year, followed by a 50% tax cut to be incorporated thereafter.Â
The previous year, Illinois lawmakers approved a similar pre-bet fee structure. However, the Illinois Gaming Board reports a 15% drop in wagers post the scheme came into effect.Â
The governor’s s proposed budget also includes other forms of gambling tax hikes, including an 8% tax increase on online casino revenue above $185 million and a cut to the promo deduction, which could generate an extra $21 million in sportsbooks.Â
Brandt Iden, a former Michigan representative, is currently the vice president of Government affairs at Fanatics Betting & Gaming, and was not convinced by the new policy draft.Â
For the full News Story, Read Here!
