The final document was the eighth draft from representative Brandt Iden, whose initial effort to bring betting to Michigan last December was thwarted by the outgoing governor Rick Snyder who refused to sign.
Snyder’s successor was also resistant to the legislation, initially refusing to sign the bill 12 months ago. When first engaging with Iden on the resurrected legislation in June, Whitmer had pushed for a 15% betting tax and a US$1 million licence fee, a tenfold increase on Iden’s proposal – and a 40 percent tax for online casinos.
After protracted negotiations between state and stakeholders the final version of the bill provides for a competitive 8.4% betting tax (excluding an additional 1.25% Detroit city tax payable by commercial casinos) and US$100,000 initial licences rolling over annually at US$50,000. Any money given on promotions on free-to-play betting can also be considered tax deductible. Daily fantasy taxes are the same as sports betting-proper, while fees are just US$20,000.
Before heading to the governor’s desk, the legislation won bipartisan approval in the Senate, which voted 35-3 in favour of sports betting and online casino. Shortly after the House of Representatives voted overwhelmingly in favour nine bills to liberalise gambling laws.
The package is expected to collect US$19 million in taxes, with US$5 million of that already earmarked for schools funding.
“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 in a statement.
“Thanks in part to the hard work and leadership of Senator Curtis Hertel and Representative Elizabeth Warren, 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 added.
In terms of timeline, online and mobile channels will likely take longer to approve before launching, but the hope is that Michigan casinos can begin taking retail bets within weeks. The 23 tribal casino will first need Governor to amend their compacts before taking bets under the new tax framework; the legislation gives Whitmer just 60 days to do so. Commercial casinos await the approval of the regulator.
Source: GMB / iGaming Times
