Michigan lawmakers reject per-wager tax for sportsbooks, halting governor's revenue plan

The Michigan Senate approved a state budget that omits Governor Gretchen Whitmer’s proposal for a per‑wager tax on sports betting operators. Whitmer had suggested a 25‑cent charge on the first 20 million mobile bets each operator places annually, rising to 50 cents for additional bets, with an expected revenue boost of $21‑$39 million. Lawmakers expressed concern that higher fees could push bettors toward unregulated offshore sites, as seen in Illinois where a similar tax led to a decline in betting activity.

Democratic Senator Sarah Anthony noted, “We have not contemplated new revenue, particularly those sin taxes the governor has put forward, but we’re open to that conversation,” emphasizing the need to protect working families. The proposal also included a raise in the online casino tax rate to 36 percent, but that too was left out of the budget. Both chambers voted to keep existing tax structures, preserving the stability of Michigan’s expanding online gaming market.