Whitmer Proposes Higher iGaming and iSports Betting Taxes

Michigan Governor Gretchen Whitmer has proposed new taxes on online casino gaming and sports betting as part of a plan to raise $800 million in new state revenues.

The proposal would increase the tax on online casino revenues above $185 million by 8%, increasing the top incremental tax rate to 36%. The Governor has estimated this tax will generate $136 million annually. A new per-wager tax on sports betting would charge 25 cents per wager for the first 20 million wagers per year and 50 cents per wager thereafter, projected to raise $39 million.

The plan also eliminates the ability of sports betting operators to deduct promotional wagers from taxable revenue, expected to bring in an additional $21 million.

The taxes are part of a larger funding strategy addressing a shortfall in Medicaid financing due to changes in federal policy. Republican leaders in the Michigan House have indicated they do not support the tax increases.

The Legislature is required to pass a budget and forward it to the governor no later than July 1 and the governor is required to sign the budget into law by the start of the October 1 fiscal year.

Detroit Casinos Report $103.9 Million in January Revenue

According to the January revenues released by the Michigan Gaming Control Board (“MGCB”), the three Detroit casinos reported $103.9 million in monthly aggregate revenue in January 2026.

Table games and slots accounted for $103.1 million, while retail sports betting generated $770,319 in qualified adjusted gross receipts (“QAGR”).

The January market shares were:

MGM-49%
MotorCity-30%
Hollywood Casino at Greektown-21%

The three Detroit casinos paid $8.4 million in gaming taxes to the State of Michigan. The casinos also reported submitting $12.3 million in wagering taxes and development agreement payments to the City of Detroit in January.

The three Detroit casinos reported $11.3 million in total sports betting handle and total gross receipts were $789,669 for the month of January.

January QAGR by property were:

MGM-$227,918
MotorCity-$255,937
Hollywood Casino at Greektown-$286,464

The three Detroit casinos submitted taxes on retail sports betting in the amounts of $29,118 to the State of Michigan, and $35,589 to the City of Detroit for January 2026, based on their retail sports betting revenue.

In addition to reporting revenue from the three Detroit casinos, the MGCB released revenue numbers from fantasy contest operators.

Fantasy contest operators reported total adjusted revenues of $993,921 and paid taxes of $83,489 during December 2025.

From January 1 through December 31, 2025, fantasy contest operators reported $9.9 million in aggregate adjusted revenues and paid $827,511 in taxes.

Indiana House Advances Bill Allowing Potential Casino Relocation

In an article, The Indiana House of Representatives voted 67–30 to approve House Bill 1038, legislation that would allow the relocation of the Rising Star Casino from Rising Sun to another eligible county. The measure now moves to the Senate and must be approved by the end of February to advance.

The bill would allow Allen, DeKalb, Steuben, and Wayne counties to seek the relocated casino license. The proposal follows an October study by the Indiana Gaming Commission identifying Indianapolis as the most profitable relocation site, followed by northeast Indiana. However, the study noted that a move to Indianapolis could negatively impact existing casinos in Shelbyville and Anderson, while northeast Indiana was viewed as a more open market.

The legislation would require the selected operator to invest at least $500 million in the new casino within five years of opening. While Rising Star’s owner, Full House Resorts, has previously sought relocation approval, the bill would allow all 13 state regulated casino operators to submit bids for the license.

Under the proposal:

The Indiana Gaming Commission must select an operator by April 15, 2027.
Local officials must endorse any proposed site.
A voter referendum is permitted but not required.
The selected operator must pay a $50 million fee to the state.
30 million would be paid to Rising Sun and Ohio County as compensation for lost tax revenue.

Local officials have expressed concerns that the proposed compensation may not fully offset the approximately $5 million in annual casino tax revenue currently generated by the Rising Star Casino.

The bill now awaits consideration in the Indiana Senate.

NCLGS Summer Meeting Sponsorship Opportunities

The National Council of Legislators from Gaming States (“NCLGS”) announced in a recent press release that its upcoming Summer Meeting, taking place July 8-11, will offer sponsorship opportunities. Demand for sponsorship opportunities is strong, as this event remains the only gaming-focused conference in the United States centered specifically on legislative decision-makers.

The Summer Meeting follows the highly successful NCLGS Winter Meeting held in December, which welcomed more than 340 participants. Attendance included over 180 legislators and regulators representing more than 30 states.

As the organization continues to expand, interest in sponsorships has grown accordingly. Sponsorship packages allow stakeholders to support the NCLGS mission while building meaningful connections with key policymakers and leaders within the gaming industry.

Founded over 30 years ago, NCLGS is the sole organization of state legislators that convenes regularly to address gaming-related issues. The organization does not advocate for or against gaming; instead, it emphasizes effective regulation and the promotion of best practices in gaming governance.

NCLGS’s semiannual meetings bring together a broad range of participants, including state lawmakers, regulators, gaming operators and suppliers, attorneys, lobbyists, members of the media, and other industry stakeholders. These meetings offer a unique forum for comprehensive discussions on regulated gaming and assist legislators across the country in developing thoughtful and effective gaming policies.

Additional details about the meeting agenda, including panel discussions and special off-site events, will be released throughout the spring.

Navigating the Emerging Landscape of Prediction Markets: Part 1

In a recent press release, the International Association of Gaming Advisors (“IAGA”) announced that it will host a webinar on February 25^th at 8:00 a.m. PST. In announcing this webinar, the organization highlighted the rapid growth of prediction market contracts as technology advances and consumer engagement continues to evolve, blending entertainment, social interaction, and real-time market sentiment. This growth spans decentralized platforms offering contracts tied to sports, politics, and global events, as well as the increasingly complex navigation of federal and state regulatory frameworks, reflecting the accelerated expansion of the prediction market ecosystem.

This webinar will convene industry leaders, legal experts, and compliance professionals to examine and educate participants on the next generation of products and services transforming how consumers interact with markets. Panelists will provide insight into the current prediction market landscape, including:

Developments in the regulatory environment, including federal CFTC oversight and licensing considerations for platform engagement, etc.
The role of leading companies and emerging industry partnerships.
The range of products and services available to consumers and the channels through which they are delivered.
The intersection of technological innovation, state gaming laws, and federal regulation.
Risk management strategies, regulatory compliance tools, consumer protection measures, and integrity monitoring.

The session will be moderated by Bob Boyle, Managing Director of Forensic & Integrity Services at Ernst & Young. Featured panelists include:

Andy Booth, Managing Director of Capital Markets Technology Consulting, Ernst & Young
Steve Hart, Partner, Womble Bond Dickinson