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Michigan Lawmakers Look to Legalize Sports Betting, Add Provision to House Bill

Brett Smiley by Brett Smiley
December 14, 2017
in Regulation
Michigan Is Preparing for Legalized Sports Betting And the Possible Repeal of PASPA by the United States Supreme Court
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Michigan’s House Regulatory Reform Committee approved on Wednesday a revised gaming bill, adding a provision on sports betting to the original version of House Bill 4926 (HB4926).

Chairman of the committee, Brandt Iden, signed off on the amended bill that contains important language for proponents of legal sports betting. The robust gaming bill that would legalize online casino gaming (like New Jersey) now includes the following:Β “The Division [of Internet Gaming] could permit an internet gaming licensee to conduct internet wagering on amateur or professional sporting events or contests if the wagering were not prohibited by federal law.”

Michigan Is Preparing for Legalized Sports Betting And the Possible Repeal of PASPA by the United States Supreme Court

Gambling Compliance’s Chris Krafcik has some information, noting that the bill is unlikely to move to the House floor until 2018.

Further to yesterday's #MI thread: The amended v. of MI #iGaming bill HB4926 would allow Detroit casinos to offer internet #sportsbetting. MI, TMK, is 2nd stateβ€”behind #PAβ€”to consider legislation that would allow casino-style iGaming *and* internet sports wagering.

— Chris Krafcik (@CKrafcik) December 13, 2017

Potentially good news, tho, for #US #sportsbetting biz in #MI #iGaming bill HB4926: If I'm reading bill correctly, internet sports wagering GGR would be taxed at a relatively benign 10% rate (NV sports betting tax, for ref., is 6.75%, I believe, while PA is an effective 36%).

— Chris Krafcik (@CKrafcik) December 13, 2017

Last note on this thread: #MI House Speaker's office told my colleague @reporternickg that Speaker has no plans to schedule #iGaming bill HB4926 for a vote before adjournment later today. The MI Legislature will reconvene in January for the 2nd year of its 2-year session.

— Chris Krafcik (@CKrafcik) December 14, 2017

Michigan has over a dozen casinos including three in the Detroit Metropolitan area. Obviously the timing of this legislative activity is no coincidence. Β 

β€œYou have 11 other states just beginning to have the conversation, the contemplation, of what [sports betting] would mean to their state,” Sara Slane, senior vice president of public affairs at the American Gaming Association recently told Bloomberg. β€œWe certainly anticipate that more states will hit the ground running again in January when sessions convene.”

Co-sponsor of HB4926, Robert Kosowski, earlier expressed his desire to get moving on the sports betting and proposed legislation on the matter earlier this year.

β€œThere’s lot of upside for those entities [that offer sports betting], which, in turn, will likely lead to more tax revenue for the states,” Kosowski said on Monday.

The bill would levy a 10% tax on operators, which would apply to sportsbook operations as well as those running online casinos. That’s a few points more than the 6.75% rate applied in Nevada. The bill also seems to indicate that only existing brick-and-mortar casino facilities would be eligible as licensees. That said, this particular bill does not make rules or concessions for physical sportsbooks inside the casinos. One thing at a time, although mobile/online sports wagering is booming in Nevada and appears to be the future.

If HB4926 passes the House, it would then go to the Senate and finally to Michigan governor Rick Snyder’s desk.

With a decision in Christie v NCAA coming in the spring of 2018, it’s looking like the horses are nearing the gate, and some states are moving with greater speed and certainty than others.

Also check out from SportsHandle:

The Rise And Excitement of In-Play Sports Betting, Explained By Expert

What International Soccer Can Teach U.S. Sports Leagues About Sports Betting Partnerships

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Brett Smiley

Brett Smiley

Brett Smiley is editor-in-chief and co-founder of Sports Handle, which joined forces with the US Bets team in November 2018. He focuses on the sports betting industry and legislation. He's a recreational sports bettor and DFS player himself, focusing on the NFL. In a past life, Smiley practiced commercial litigation in New York City and previously wrote for FOX Sports and SI.com. He lives in New Jersey with his family.

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