Hanging On: Michigan Sports Betting Bills Ready For Some Action

As the summer of 2019 draws near, so does the anticipation for another NFL season. Supporters in states like Michigan are contemplating placing bets on their beloved teams. However, the future of sports betting in Michigan remains uncertain at the moment.

There is a chance that fans in Michigan may have the opportunity to legally place bets, as bills to regulate sports betting in the state could be addressed in the near future.

That of sports betting in Michigan

On March 7, three bills were introduced in the state Senate and House, namely SB186, HB4311, and HB4307. Each bill was introduced by separate sponsors.

SB186 was promptly received by the Senate committee on regulatory reform, while the House Ways and Means committee received HB4311 on March 12.

On March 19, HB4307 was received by the same committee. As of now, there are no hearings or votes planned for any of the bills.

It appears that the Legislature is highly inclined to pass HB4307, a bill that bears a striking resemblance to a previous legislation that was approved by the Legislature but rejected by former Governor Rick Snyder.

If the Legislature passes HB4307, Governor Gretchen Whitmer may consider signing it into law. However, she currently opposes the bill in its present form.

MI Sports betting under HB4307

Sports betting is now legalized through the bill, offering both land-based and mobile options.

Both commercial and tribal casinos in the state have the option to acquire licenses for operating sportsbooks. Additionally, online-only operators such as DraftKings Sportsbook and FanDuel Sportsbook would also be eligible for obtaining licenses.

The proposed legislation aims to establish a state division solely dedicated to overseeing sports betting activities, alongside a designated fund for sports betting. Under the bill, a tax rate of 8% would be imposed on betting revenues. Additionally, obtaining a license would require an initial payment of $200,000, which would then need to be renewed annually at a cost of $100,000.

In contrast to certain states, the legality of betting on college sports would be permitted.

Books would probably begin taking action on the football and men’s basketball games of the University of Michigan and Michigan State University as soon as they commence.

Where would the money go?

The revenue generated from sports betting is divided into four parts in HB4307.

55% of the fees and taxes would go to the sports betting fund, with an annual allocation of one million dollars to be redirected towards a compulsive gambling prevention fund.

An additional 30% will be allocated to the city where the operator is situated, intended for development purposes.

The Michigan Agriculture Equine Industry Development Fund and the Michigan Transportation Fund would each receive an equal share of the remaining 10%.

However, it is possible to make adjustments to this framework before the final version is approved. This is particularly true considering Whitmer’s dissatisfaction with the tax structure.

When might HB4307 become law?

This month, Brandt aims to include HB4307 in a comprehensive set of gambling bills that he plans to advocate for.

In order to secure Whitmer’s signature, Rep. Brandt Iden must address her concerns about potential revenue loss for the state’s iLottery program due to online sports betting. It is crucial for him to pacify her, as she fears the impact on education funds in the state.

However, for Brandt’s bill to reach Whitmer’s desk, it would require support in the state Senate as well.

Despite the Legislature’s previous approval of a sports betting bill similar to HB4307, the main challenge lies in Whitmer’s concerns.

Legalizing sports betting in Michigan may be a possibility by the upcoming football seasons of the Detroit Lions and Michigan Wolverines.

Michigan residents can anticipate the availability of online operators such as DraftKings and FanDuel, as well as all 26 casinos, if the aforementioned scenario holds true.