Read the Legislation: House Bill 4916, 4917, and 4918.Ī Fantasy Contests Consumer Protection Act would regulate games in which players draft fantasy 'teams' composed of players from multiple teams in a given sports such as NFL football. Proceeds from the 8.4% tax on sports betting will be divided as follows: 30% to the city in which the sports betting operator's casino is located, to be spent on policing and other public safety programs 65% to the state's Internet Sports Betting Fund, and 5% or up to $3 million annually to a fund to support and promote the horse racing industry.

That's down from a rate of 8.75% in a version the state House passed earlier. Sports betting will be taxed at a rate of 8.4%, with an extra 3.25% paid by casinos in the City of Detroit. Sports wagering will be legalized and can be offered live or online by existing casinos. Money from the Internet Betting Fund could be used to cover administrative costs, with $2 million allocated to support first responders, $500,000 annually to combat compulsive gambling, and the balance going to the School Aid Fund. Proceeds from the state tax on Internet gaming would be distributed as follows: 30% to the city in which the sports betting operator's casino is located, to be spent on policing and other public safety programs 65% to the state's Internet Betting Fund, and 5% or up to $3 million annually to a fund to support and promote the horse racing industry. After that, no allowance is made for free play.

To allow for free play to encourage Internet gaming, the casinos would be able to deduct 10% from the gross receipts, which would otherwise be taxed, for the first three years, 6% in the fourth year, and 4% in the fifth year. That tax rate is considerably higher than an earlier version of the legislation, which had a tax rate of 4% to 23%. Online gaming would be taxed at between 20% and 28%, with the lowest rate applying to adjusted gross receipts below $4 million and the highest rate applying to adjusted gross receipts of $12 million or more. The legislation creates the Internet Gaming Fund and requires fees and taxes to be paid into the fund. Those who supply casinos offering Internet gaming will have to be licensed and will be subject to a $5,000 application fee, a $5,000 initial license fee, and a $2,500 annual fee. Internet gambling can only be offered by existing Michigan casinos, be they Detroit casinos or tribal casinos located around the state.Ĭasinos operating Internet gambling will be subject to a $50,000 application fee, a $100,000 initial license fee, and a $50,000 annual fee.

Online gambling michigan law