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With Governor Gretchen Whitmer’s (D) signature, Michigan becomes the 20th state in the US to pass laws to govern sports betting.
Gov. Gretchen Whitmer has made Michigan the 20th state with legal sports betting. (Image: Jake May/MLive)
Whitmer signed House Bill 4916 – the Lawful Sports Betting Act – which grants the Michigan Gaming Control Board the privilege to issue sports betting licenses to tribal casinos, as well as the three commercial casinos in Detroit.
Whitmer additionally signed House Bill 4311 – the Lawful Internet Gaming Act – that allows tribal and commercial casinos to apply for online gambling permits, and House Bill 4308 – the Fantasy Contests Consumer Protection Act – which establishes a legal framework for daily fantasy sports.
Tax revenue generated by the expanded gaming will be allocated for school aid and the First Responder Presumed Coverage Fund.
My top priority in signing this legislation was protecting and investing in the School Aid Fund, because our students deserve leaders who put their education first,” Whitmer said. “These bills will put more dollars in Michigan classrooms and increase funding for firefighters battling cancer.”
“This is a real bipartisan win for our state,” Whitmer concluded.
Make It 20
Michigan becomes the 20th state in America to legalize sports betting since the US Supreme Court’s May 2018 repeal of the federal ban that had prohibited the gambling activity since 1992.
Operations are up and running in 13 states: Nevada, Delaware, New Jersey, Rhode Island, Pennsylvania, New York, West Virginia, Mississippi, Indiana, Iowa, Arkansas, New Mexico, and Oregon. Sports betting legislation has been signed by governors in New Hampshire, North Carolina, Tennessee, Illinois, Montana, Colorado, the District of Columbia, and now Michigan.
“With Gov. Whitmer’s signature, twenty states plus DC have now legalized sports betting in the United States, capping off a tremendous year of growth,” American Gaming Association President Bill Miller said. “These new markets offer more Americans a safe, legal way to wager on sports while positively impacting communities, like in Michigan, where revenue from sports betting will generate needed resources for public education, first responders, and, importantly, responsible gaming.”
The Great Lake State estimates sports betting, online gambling, and daily fantasy sports will generate $19 million in new tax revenue.
Mobile Key
It appears Michigan chose wisely when it comes to sports betting. As made evident in other states, allowing for mobile wagering is critical to a successful sports gambling market.
In New Jersey, which has emerged as the richest sports betting state along with the Nevada, 83 percent of all wagers this year have been facilitated online.
Reasonable tax rates on gross gaming revenue (GGR) are also crucial to allowing legal sportsbooks to compete with unregulated offshore books.
Michigan sports betting licenses will cost $100,000, and be renewed annually at $50,000. Tribal sportsbooks will be taxed at 8.4 percent, while Detroit’s will be taxed at 11.75 percent due to the city’s mandatory 3.25 percent add-on tax on all forms of gambling.
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