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Michigan Gov. Gretchen Whitmer is proposing an increase to the current online casino tax rates for the fiscal year 20227 budget.
The governor is targeting an extra $200 million in tax revenue through gambling.
“In the wake of devastating federal cuts to health care that have already raised premiums and could close hospitals and clinics, crowd emergency rooms, cut jobs, and kick hundreds of thousands of Michiganders off their health care, the budget recommendation takes decisive action to protect access to coverage and ensure the future sustainability of Medicaid,” Whitmer said in the report.
Currently, operators can pay anywhere from 20-28%. With the increase, operators can expect to pay up to 36% after surpassing Adjusted Gross Revenue (AGR) of $185 million.
Four companies currently report over that number.
- FanDuel Casino: $768.1 million AGR
- BetMGM Casino: $735.5 million AGR
- DraftKings Casino: $434.1 million AGR
- BetRivers Casino: $212.1 million AGR
Whitmer is also proposing a per-bet charge for each wager placed.
From Saturday Tradition:
The budget calls for a $0.25 per-bet tax to be placed on each operator’s first 20 million annual bets. After reaching that threshold, the tax would jump up to $0.50 per-bet.
Whitmer believes that can generate nearly $39 million in added tax revenue.
As one might expect, the industry is resistant to any tax increase.
- Chris Costigan, Gambling911.com Publisher
