HomePublicationsNewsletter ArchiveVolume 25Issue 29MICHIGAN HOUSE PASSES OMNIBUS PACKAGE OF GAMING BILLS

On Tuesday, October 29th, the House Ways and Means Committee took up a package of gaming bills in committee meeting.  The package of bills includes bills regarding the authorization and regulation of fantasy sports, iGaming, and sports wagering, the modernization of the Michigan Gaming Control Act  and revisions to regulations surrounding charitable gaming offering casino style games as part of millionaire parties and approval of advance deposit wagering at horse tracks. Additional details regarding the provisions contained in the gaming package may be found in Volume 25, Issue 12 of the Michigan Gaming Newsletter

At the committee hearing, the Ways and Means Committee adopted amendments to the previous versions of the bills.  With respect to the sports wagering bill (HB 4916), the amended bill increases the tax rate from 8% to 8.75%, resulting in an actual tax rate for the Detroit casinos of 12% once the 3.25% tax payable to the City of Detroit is accounted for.  Similarly, the amendments to the iGaming bill (HB 4311) also increase the tax rates.  While the tax rate was 8% in the original bill, the amended bill contains a tiered tax rate.  For the first 3 years of operations, the tax rates are 4% for the first $4 million of gross receipts, 6% for revenue between $4 million and $8 million, 8% for revenue between $8 million and $10 million, 10% for revenue between $10 million and $12 million, and 19% for revenue above $12 million.  For the 4thyear of operation, the tiers increase to 6%, 8%, 10%, 12% and 21%, respectively.  Finally, for all operations in year 5 and beyond, the tax rates again increase to 8%, 10%, 12%, 14% and 23%, respectively.  The amendments also contain provisions that guarantee minimum funding to the city of Detroit as well as the school state aid fund from iLottery proceeds.

The bills amending the charitable gaming millionaire parties (HB 4730), permitting advance deposit wagering (HB 4310) and authorizing fantasy sports (HB 4308) were all substantively unchanged by the committee.

The House passed all of the bills in the omnibus package on Wednesday, October 30, with the exception of the bill modernizing the Michigan Gaming Control Act (HB4307).  The package of bills now moves to the Senate for consideration.  Governor Whitmer has continued to express concern that the tax rates are not high enough.  Tiffany Brown, spokeswoman for Governor Whitmer, indicated: “We continue to have revenue concerns regarding the bills’ negative impacts on the School Aid Fund". 

There currently are only 14 session days remaining on the Senate Calendar before year-end: November 5-7, and 12-13, December 3-5, 7-9 and 14-16.


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