Michigan Opens Door To Sports Betting

Michigan lawmakers approved the sports betting legislation that will regulate the market in this state. The next step is for the outgoing Governor Rick Snyder to sign it in order for the bill to become a law…

…but that is just the matter of formality.

Representative Brandt Iden’s House Bill 4926, The Lawful Internet Gaming Act is approved by the Senate of this state.

It is a major victory for Michigan with 33 senators backing up the legislation and only 5 voting against it. After that, the bill circled back to the House where it was supported by 71 votes with 35 being against.

Gambling in this state will be expanded drastically with the introduction once the law comes into force. The Michigan Gaming Board established…

The Division of Internet Gaming which will oversee online gambling market in the state.

There’s more

Commercial and tribal casinos will be able to apply for online gambling licenses that last for five years. The initial fee is set at $100,000! Those brands which do get the approval are obliged to pay a $200,000 fee for the first year of operation and $100,000 on a yearly basis after that.

The companies will offer abundance of games including slots, blackjack, poker and other table and card games. As for players, all those over 21 are eligible to place bets. The providers and casinos will also be permitted to…

…provide sports betting services and accept wagers on “any amateur or professional sporting event or contest,” as it is indicated by the Division of Internet Gaming.

Taxing in Right

One of the issues which is always considered when regulating any form of gambling in a state is taxation. In Michigan, operators will be asked to pay an online gross gaming revenue-generated tax of 8%…

…but the land-based casinos will add a 1.25% tax to that number described as a municipal services fee. This one will be directed to the city in which the venue is located.

The distribution of money collected through taxes will go as following:

  • 30% will be used to improve quality of life for the citizens of a city in which the licensee is based.
  • 5% will be directed to the State School Aid Fund
  • 5% will be received by Michigan Transportation Fund
  • 5% goes to the Michigan Agriculture Equine Industry Development Fund
  • 55% will be allocated to the Internet Gaming Fund, created through the bill – a money that will be used for regulating the market in the best way possible!

US Sports Betting Recap

More states are moving towards sports betting regulation and this form of gambling is slowly starting to get its shape. One of the latest to legalize it was Washington D.C. However, Intralot became the sole provider in this state…

…causing a lot of controversy not only among the other suppliers who wished to compete in the market by also in the American Gaming Association that reacted swiftly to the news.

The legalization in Michigan will not be as controversial and sports betting will be much better regulated.


“Michigan iGaming bill heads to governor for signature”, igamingbusiness.com, December 21, 2018.

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