Michigan Senate Proposes Higher Tax Rates for iGaming and Sports Betting
Michigan legislators have introduced two bills that could increase taxes on commercial online gambling and sports betting operations in the state.
State Senators Sam Singh and Jeremy Moss proposed Senate Bills 1193 and 1194, which would affect commercial operators in the following ways:
For Sports Betting (SB1193):
- Increase tax rate from 8.4% to 8.5% on both online and retail operations
For iGaming (SB1194):
- Annual GGR under $4M: 20% to 21%
- $4M to $8M: 22% to 23%
- $8M to $10M: 24% to 25%
- $10M to $12M: 27% (new bracket)
- Over $12M: 29% (new bracket)
Man speaking at convention podium
Key Points:
- Changes only affect commercial operators in Detroit (MGM Grand Detroit, MotorCity, and Hollywood Casino at Greektown)
- Tribal gaming operations would maintain current rates
- Commercial operators oppose the increase, citing competitive disadvantage
2024 Revenue Performance (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
Both bills are currently under review by the Senate Government Operations Committee, where Singh serves as majority vice chair and Moss as a committee member.
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