Sports betting and online gambling through Michigan casinos will be legal in Michigan under legislation signed by Gov. Gretchen Whitmer Friday.
The legislation paves the way for sports betting and internet gaming for those 21 and older in Michigan, and also legalizes and regulates fantasy sports betting in Michigan while amending state laws regarding charitable gaming and regulations for Detroit-area casinos.
Supporters of the package have said the bills could bring in tens of millions in new tax revenue to the state. Most of that money is headed towards the School Aid Fund, which funds K-12 schools in Michigan. Another $4 million a year would go to a fund compensating firefighters who contract cancer due to exposure to smoke and chemicals while on the job.
In a statement, Whitmer characterized the bills as a “real bipartisan win” for the state, crediting Sen. Curtis Hertel, Jr., D-East Lansing, and Rep. Rebekah Warren, D-Ann Arbor, for their work on the package in the legislature.
“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,” said Whitmer. "Thanks in part to the hard work and leadership of Senator Hertel and Representative Warren, these bills will put more dollars in Michigan classrooms and increase funding for firefighters battling cancer.”
Rep. Brandt Iden, R-Oshtemo Twp., was the lead sponsor on the bills and has been working on amending Michigan gambling laws for years. In a statement, he said he was pleased Michigan has entered “the modern era of gaming.”
“We’ll have a safe, regulated environment for the thousands of Michigan residents who for years have been forced to travel to other states or play on risky offshore sites," he said. “Our economy will benefit as jobs are created within a growing industry. Our schools and local communities will benefit from new revenue.”
Under the legislation, an 8.4 percent tax on sports bets would be collected after winnings are paid out.
Taxes on internet gambling would range between 20 and 28 percent, depending on how much money a casino generates from online gambling - that’s an increase from the original proposal, which would have phased in a tax rate over time ending between 8 and 23 percent after five years.
According to the American Gaming Association, 13 states currently allow sports betting, and another six have authorized the practice. Three other states are actively considering it.
How long it takes before operators can begin offering sports betting and online gaming platforms will depend on how quickly the Michigan Gaming Control Board can set rules and regulations for the new laws. Iden and other supporters are hoping it can happen by March Madness.
Read more about gaming in Michigan:
Michigan residents might be able to bet on sports by March Madness, lawmakers say
Michigan poised to legalize online gambling, sports betting
Sports betting, online gambling could soon be legal in Michigan