Michigan iGaming Bill Passes, Could Bring Online Poker Soon

• State lawmakers passed MI HB 4916 unanimously in a Senate committee.
• The bill would allow for online poker to appear in Michigan.
• Lawmakers are hoping that the bill will be signed by the end of the week.

LANSING, Mich. – State lawmakers passed a gambling expansion bill in the State Senate Regulatory Reform Committee on Tuesday.

MI HB 4916 is the bill that state lawmakers are looking at. This bill would authorize a large expansion of legal gambling in Michigan.

One of the main features is that legal online poker would be allowed in Michigan. Online poker would be run and operated by both state operated casinos and tribal ran casinos.

Fixing Some Concerns

This is similar to the bill that state lawmakers passed back in 2018. Although state legislatures passed the bill, it was ultimately vetoed by former Governor Rick Snyder.

The reason for the veto is that the former governor was concerned about education funding. He believed that allowing online poker would undercut lottery sales. About $1 billion worth of school funding comes from lottery sales.

Michigan now has a new governor now. MI Governor Gretchen Whitmer has expressed similar concerns about undercutting funding for education. She wanted to hit online poker sites with a 40 percent tax rate to offset any losses caused by the gambling expansion. State lawmakers did not agree to that.

The governor and state lawmakers have come together to work out how exactly they should tax online gambling. MI HB 4916 now states that online poker will be taxed at a 20 to 28 percent rate.

Depending on the business that plans to offer this feature, their financial figures will be used help determine how much each online site will be taxed.

Sports Betting Is Coming

That is not all. The gambling expansion will also include provisions that would legalize sports betting in Michigan. Tribal and commercial casinos will have the ability to launch their own sportsbooks. The Michigan Lottery will also be allowed to offer sports wagering.

Sports betting will be taxed at an 8.4 percent rate. Funding from sports betting will also help fuel the education fund. Enough money will be funneled into the education fund so the Governor agreed to the terms of the bill. This means that the governor could end up signing the bill soon.

“The intention is to get this to the governor’s desk and have votes today,” said Sen. Curtis Hertel Jr.