Bipartisan legislation legalizing sports betting, benefiting school aid fund, signed

On Dec. 20, Governor Gretchen Whitmer signed bipartisan House Bills 4311-12, 4916-18, 4307 and 4308 into law, which legalizes Internet gaming and sports betting through Michigan's casinos. Revenue from online gaming and sports betting will support the school aid fund and First Responder Presumed Coverage Fund (FRPCF). 

“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 [Curtis] Hertel and Representative [Rebekah] 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.”

The Michigan Department of Treasury estimates that this legalization will bring in $19 million in new revenue to Michigan. This additional revenue will bolster the School Aid Fund by $4.8 million and invest an additional $4 million into the FRPCF.  

FRPCF provides weekly workers’ compensation wage loss and medical benefits to qualified first responders that have developed certain cancers. This investment will be the first time FRPCF has a dedicated funding stream to treat illnesses many firefighters battle due to smoke inhalation and exposure to chemicals while protecting others.  

Additionally, this bill package allows tribal casinos to participate in online gaming and sports betting at an equal level to the Detroit casinos. This revenue will support important tribal community activities.   

HB 4311 creates the Lawful Internet Gaming Act, which allows the Michigan Gaming Control Board (MGCB) to issue licenses for online and mobile casinos games to be offer by licensed Detroit or Tribal casinos if the applicants meet certain criteria. The bill allows for all current forms of casinos games to be offered online or on mobile devices. 

HB 4916 creates the Lawful Sports Betting Act, which legalizes sports betting in casinos, online and mobile. This bill specifies that an internet sports betting wager received by a sports betting operator or its internet sports betting platform provider would be considered gambling or gaming that was conducted in the sports betting operator's casino located in Michigan.

HB 4308 creates the Fantasy Contests Consumer Protection Act, which establishes the legal framework to regulate fantasy sports contests within the state. It allows for both paid contest at a commercial level and private contest within certain criteria to be legal in the state of Michigan.

PlayUSA.com Network, a leading source for news, analysis, and research related to the market for regulated online gaming, predicts that Michigan could rival the largest legal sports betting markets in the country once it matures, and predicts even higher revenues than the state.

PlayMichigan.com analysis predict that Michigan will attract billions of dollars in bets each year and generate millions in tax revenue.

When Gov. Whitmer signed HB 4916, Michigan became the 13th state to legalize online sports betting statewide and just the fifth state to legalize online casino gambling. And Michigan’s potential as a market is enormous, capable of generating as much as $7 billion to $8 billion in sports bets annually and $500 million in gross operator revenue, according to PlayMichigan.com projections.

“Michigan is the second-largest state in terms of population to have legalized online sports betting and online casinos and poker, behind only Pennsylvania,” said Dustin Gouker, analyst for Play

Michigan.com. “Michigan’s business-friendly tax rate and competitive licensing fees will attract operators, too. And with a solid tribal and commercial casino infrastructure already in place, Michigan should be poised for quick success.”

Michigan will tax sports betting gross revenue at 8.4%, and Detroit casinos will pay an additional 1.25% tax to the city. That makes Michigan among the most competitive compared to other legal jurisdictions, which is a factor in Play Michigan.com’s projections.


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