LANSING, Mich. – Michigan lawmakers have set aside Gov. Gretchen Whitmer’s proposal to raise taxes on sports betting, leaving the measure out of budget plans advanced in both chambers and signaling hesitation to overhaul the state’s fast‑growing gaming market.
Whitmer had proposed a per‑bet fee on mobile wagers — 25 cents on the first 20 million bets placed annually by each operator and 50 cents on all additional wagers — a structure modeled after a system adopted in Illinois. Her administration estimated the plan would generate about $39 million in new revenue.
But lawmakers expressed concern that the added costs could be passed on to bettors, potentially driving them toward unregulated offshore platforms that offer no consumer protections and contribute no tax revenue. Illinois saw a decline in betting activity after implementing its per‑wager fee, raising further caution among Michigan legislators.
Neither the House nor the Senate included Whitmer’s proposal in their budget drafts. The Republican‑controlled House advanced a plan without new gaming taxes, while the Democratic‑led Senate approved a broader budget that follows its own priorities. The differences leave room for negotiations, but no clear path for the governor’s tax plan.
Whitmer’s proposal also called for raising the online casino tax rate to 36%, up from the current 20% to 28% range, and phasing out operators’ ability to deduct promotional credits from taxable revenue — changes that would significantly reshape the state’s gambling landscape.
The gaming industry has warned that higher taxes could limit operators’ ability to offer promotions and competitive odds, making regulated platforms less attractive to bettors. Lawmakers, meanwhile, continue searching for ways to fund state programs without destabilizing a market that has become one of the country’s steadier online betting environments.
Budget negotiations will continue in the coming weeks, leaving the possibility of gambling‑related tax changes still on the table.
