LANSING, MI (WKZO AM/FM) — UPDATE: Bills to legalize both sports betting and online gambling have been approved as of Wednesday.
Although bills have previously been vetoed that would do the same, State Rep. Brandt Iden and lawmakers have come to an agreement on how much to tax players.
Previously, opposition was made in creating such a measure, as it was unknown how much of a tax should be placed on winnings, as well as how money received from the games should be used.
As written, the bills will impose a tax of 8.4 percent after winnings, while other games would be taxed from anywhere between 20 and 28 percent.
Most the winnings will go towards funding the School Aid Fund. Other revenue from online betting will fund projects for injured firefighters, among others.
A final vote on the matter from Governor Whitmer will be expected before the end of the week. Whitmer is reportedly pleased with the compromises made in the bill language.
— Original Story —
Michigan citizens may see new forms of gambling if a bill package is signed into law this week.
If passed, the bills would legalize sports betting in Michigan, as well as online gambling.
The legislation was originally introduced by State Rep. Brandt Iden, who believes that the legislation would provide sizable income for Michigan, as well as bring it up to date with other states that have passed similar legislation.
“This is a big revenue piece for the State of Michigan, this is something consumers continue to ask for,” Iden said. “But more importantly, this is just a matter of trying to make sure that we capture the revenue here in the state. You don’t want to be the last big state to implement this, we’re gonna be in big trouble if that’s the case.”
As written, an 8.4 percent tax would be implemented on sports bets after winnings, which is less than what was proposed. However, internet gambling taxes could range from anywhere between 20 to almost 30 percent.
The legislation has been talked about for months. Governor Whitmer’s administration had expressed concerns about where the money would go, among other issues. However, in a statement from Whitmer’s office, representatives maintain that there has been good progress made on the bill.
The money received would go to fund areas such as the School Aid Fund, compensation for injured firefighters, and more.
A final decision is expected to be made on the bill this week, or soon after.
