Two state senators want to increase the taxes betting and iGaming operators pay
Michigan lawmakers are considering measures to raise tax rates on internet gaming and sports betting, aiming to increase state revenue from the rapidly growing gaming industry. Two proposed bills, introduced by Democratic state Senators Sam Singh and Jeremy Moss, outline these changes. If approved, the legislation would adjust tax rates for both iGaming and sports betting operators in the state.
Senate Bill 1193 proposes a slight increase in the tax rate on sports betting, moving from 8.4% to 8.5% of a commercial operator’s adjusted gross revenue. Meanwhile, Senate Bill 1194 focuses on internet gaming, introducing a tiered system with higher rates for operators earning more revenue.
The proposed changes include raising the tax for iGaming revenue below $4 million from 20% to 21%, while companies with higher earnings face even steeper increases. Revenue between $4 million and $8 million would be taxed at 23%, up from 22%, and revenue exceeding $12 million would be taxed at 29%, compared to the current 28%.
These measures come as neighboring Ohio is considering lowering its tax rate on online sports betting, highlighting the diverse approaches states are taking toward gaming taxation. Nationally, recommendations for iGaming tax rates range between 15% and 25% as more states explore legalization.
The proposed changes reflect Michigan’s effort to capitalize on the popularity of online gaming and sports betting, potentially generating additional state revenue. However, the impact on operators and players remains uncertain, as higher tax rates could influence business strategies and pricing for consumers. The bills’ progression will likely spark debate among stakeholders in the coming months.
Both bills have been referred to the Senate Committee on Government Operations for further review. Senator Moss has not commented on the proposals.
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