Two Michigan state senators, Sam Singh and Jeremy Moss, have recently put forth a pair of bills suggesting minor tax increases on revenues from sports betting and online gambling. Distinct from other states that have opted for significant hikes, these lawmakers are advocating for a more restrained approach.
On December 5th, they introduced [Senate Bill 1193](https://www.legislature.mi.gov/Bills/Bill?ObjectName=2024-SB-1193), which proposes raising the tax rate on commercial sports betting operators’ adjusted gross receipts from 8.4% to 8.5%. This proposed change applies solely to non-tribal betting, as the state is unable to alter tribal betting rates.
This adjustment is intended to slightly increase the revenue share going to the city where the sports betting operator’s partnered land-based casino is situated, moving from the current 30% to a proposed 31%.
### Proposed Online Casino Tax Increase is Tiered
Meanwhile, [Senate Bill 1194](https://www.legislature.mi.gov/documents/2023-2024/billintroduced/Senate/htm/2024-SIB-1194.htm) suggests a progressive increase in igaming tax rates, with changes based on revenue brackets. Unlike the sports betting proposal, this does not suggest a rise in the city’s share.
Senate Bill 1194 delineates the following tax revisions according to operator revenue:
– Revenue under $4 million: Tax rate adjusts from 20% to 21%
– Revenue between $4 million-$8 million: Rate changes from 22% to 23%
– Revenue between $8 million-$10 million: Rate shifts from 24% to 25%
– Revenue between $10 million-$12 million: Rate alters from 26% to 27%
– Revenue exceeding $12 million: Rate escalates from 28% to 29%
These legislative suggestions arrive shortly after recommendations from the [National Council of Legislators from Gaming States (NCLGS)](https://igamingbusiness.com/gaming/model-igaming-proposed-legislation-us/), which in November advised that tax rates should be within the 15% to 25% range.
### Departing from National Patterns and Neighboring States
The presentation of these Michigan bills is set against a backdrop of intricate national debates over gaming tax policies. In Ohio, for instance, there’s a legislative push to [lower the sports betting tax](https://www.legislature.ohio.gov/legislatureapp/legislation/135/sb190) from 20% to its previous 10%, stemming from issues over competitive balance and market viability.
For further details, you can read the [full story here](https://www.casinoreports.com/louisiana-ohio-sports-betting-tax-measures/).
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