Reports just in, hint that the Governor Gretchen Whitmer has already signed the long awaited three bills on sports betting. The bills had previously been passed by the legislators and were awaiting the signature of the governor to start operating.
The first bill, House Bill 4916- the Lawful Sports Betting Act, allows the gaming control board of Michigan to issue licenses allowing sports betting to tribal casinos in Michigan as well as to other three commercial casinos in Detroit. This will allow gamers to run their errands without being harassed by the authorities.
The second bill, House Bill 4311, gives commercial and tribal casinos the liberty to apply for online gambling permits while the House Bill 4308 provides the rules and regulations that regulate fantasy sports. This makes the Michigan State the 20th State in the United States to pass laws regarding sports betting.
After signing the bills, Whitmer released a statement saying the income generated from the sports betting will be channeled towards the School Aid Fund as well as the kitty for firefighters fighting cancer. This makes the move a win-win situation for the concerned parties and the state. Sports betting has been illegal in the United States since 1992.
However, in May 2018, the supreme court of the US lifted the ban, bringing the era of sports betting to an end. Since then, states have been passing laws on sports being every now and then, with Michigan been the most recent one. According to one article by the casion.org, the law is already taking effect in 13 of these states.
Bill Miller, the president of American Gaming Association, said that the move by the governor was just the right way to end the year.
Passing the law protects the citizens as they gamble while at the same time positively impacting the community, as in the case of Michigan where the revenue earned will benefit students and firefighters. Just to highlight, this arrangement is likely to make the industry grow faster than initially anticipated.
Having laws regulating sports betting also means there are reasonable tax rates in place. This is part of the entities that enable legal sports betting compete against unregulated gambling taking place offshore.
In Michigan, according to the issuing authorities, sports betting licenses or permists will cost $100,000 and this will require to be renewed annually for $50,000. Revenue earned by the sports betting will be imposed a tax rate of around 8.4 percent. Those in Detroit will face an additional 3.35 percent tax which is the city’s mandatory add on tax, making the total tax amount to 11.75 percent. According to casino.org, it is estimated sports betting in the state of Michigan will generate an estimated $19 million in tax money.
As it has been observed in other states, allowing sports betting is crucial to having a competitive and successful gambling market. A case in hand is New Jersey, which has been ranked as the highest earning sports betting state. Another example is Nevada, where 83 percent of all is sports earning have been from online gaming.