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Michigan, also known as the Wolverine State, may have the opportunity to explore a fresh source of income through the introduction of online casino games. However, pursuing this avenue would necessitate the implementation of new laws, and presently Governor Gretchen Whitmer appears firmly against the idea.
In a recent interview, Whitmer reiterated her objections, emphasizing her stance even further. A potential shift in her position could prompt legislators to reconsider their proposals.
Why Whitmer opposes Michigan online casino games
Whitmer’s stance on Michigan online casino games is not necessarily against them. Rather, her concern lies more with the potential consequences that may arise from their legalization.
During a recent NPR interview, Whitmer voiced her worries.
“I want to reiterate my unwavering commitment to safeguarding the School Aid Fund and ensuring that every dollar is invested in the education of our children. Consequently, I will find it difficult to support any measures that fail to prioritize this objective.”
Whitmer is concerned that online casino games will divert traffic from the Michigan Lottery, which contributes proceeds to the School Aid Fund.
Legislators are urging Whitmer to reconsider her stance.
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Online games backer makes case
In the NPR interview, Rep. Brandt Iden, the sponsor of HB4311, responded to Whitmer regarding the legalization of online casino games.
Right now, one of the things that the Governor is in dire need of is more funding. She is seeking additional financial resources for both roads and education. My proposal aims to assist her in attaining these funds. I sincerely hope that she does not obstruct the efforts to bring more money to benefit the children.
Depending on one’s point of view, HB4311 designates 5% of income generated by online casino games to be allocated to the School Aid Fund, potentially either contributing fresh funds to schools or further draining the already depleted School Aid Fund.
Lottery vs. online games perception
Based on the state lottery’s information, 26% of each dollar spent on lottery games is allocated to the School Aid Fund. In Iden’s suggestion, a portion of five cents from every dollar spent on online casino games would be directed to the School Aid Fund.
The perception about those numbers holds more significance than the numbers themselves. According to Iden, the allocation of 5% towards the School Aid Fund can be considered as additional revenue for schools, which they currently do not receive.
Iden would be correct if the number of individuals participating in the lottery remains unaffected by the advent of online casino games.
In contrast, Whitmer believes that funds from the lottery are being directed towards online casino games. If this is true, it would result in a decrease of 21 cents for every dollar in revenue allocated to the School Aid Fund.
Whitmer and the Legislature still have an opportunity to reach a compromise, but as of now, there hasn’t been any public discussion on the matter. Currently, it appears that both parties are at a deadlock.
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