Michigan lawmakers have introduced legislation to increase taxes on commercial online gambling and sports betting operations. State Senators Sam Singh and Jeremy Moss filed Senate Bills 1193 and 1194, proposing tax hikes for both sectors.

Key Changes in the Proposed Legislation:

• Sports betting tax would increase from 8.4% to 8.5% (SB1193)
• iGaming tax rates would increase by 1% across all revenue brackets (SB1194)

New iGaming Tax Structure:

• Under $4M annual revenue: 21% (up from 20%)
• $4M-$8M: 23% (up from 22%)
• $8M-$10M: 25% (up from 24%)
• $10M-$12M: 27%
• Over $12M: 29%

Important Notes:

• Changes only affect commercial operators in Detroit (MGM Grand Detroit, MotorCity, and Hollywood Casino at Greektown)
• Tribal gaming operations remain unaffected
• Both bills are currently in the Senate Government Operations Committee

2024 Revenue Impact (January-October):

• Commercial iGaming: $1.058 billion
• Tribal iGaming: $913 million
• Commercial online sports betting: $247.4 million
• Tribal online sports betting: $134.6 million

State Revenue Collection (2024):

• iGaming: $363 million
• Online sports betting: $12.5 million

Commercial operators, including BetMGM, FanDuel, and ESPN Bet, oppose the increases, arguing they would create competitive disadvantages against tribal operations.

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