Governor Gretchen Whitmer and the Legislature are nearing an agreement that will make Michigan sports betting legal. According to sources, final votes can take place this week. The latest development will be a landmark in The Great Lakes State.
Along with sports betting, online gaming will be part of the legislation. Many people argued that online casinos would hurt the gambling industry in the state, especially the iLottery. At present, there are already various gambling options in Michigan, including three commercial casinos, 24 tribal casinos, and Lottery.
According to a bookie pay per head company, the Lottery earned almost $1 billion for Michigan’s school fund last year. Seven percent of the profits came from online gambling. Governor Whitmer worried about the substitute effect, where people who play online Lottery will move to poker and other online offerings from casinos.
Michigan Sports Betting and Online Gambling Law
For every $1,000 from iLottery, schools in the state get $700. In comparison, casinos in Detroit pay 19 percent in taxes. Out of the $1,000 win in casino slots, only $81 will go to schools. The governor and the Legislature are working to find a compromise to protect the school aid fund. Also, they are looking at how to tax online games that will allow casinos to do business and attract customers.
Senator Curtis Hertel Jr told a political forum that they made much progress with the administration and stakeholders. He added that the administration had real concerns, and they considered all of them. Also, he said that the Legislature would ensure the school aid fund will continue to have its stream of funding.
Representative Brandt Iden said that his main priority is to protect consumers by legalizing online gambling and sports betting. That way, Michigan residents don’t need to resort to offshore websites.
Many entrepreneurs are excited about the new development in Michigan. Some people are learning how to be a bookie so that they can set up a sportsbook once sports betting is legal in the state.