Michigan sports betting bill passes into law
Great Lakes State becomes ninth jurisdiction to legalise betting in 2019
The US state of Michigan has become the 20th US state to legalize sports betting, following the signing of a bill allowing the practice into law.
The Lawful Internet Gaming Act was signed into law by Michigan Governor Gretchen Whitmer and includes licensing of operators and suppliers.
Speaking about passage of the law, Whitmer claimed the priority for Michigan was ensuring that gambling contributes to the state’s School Aid Fund.
“Thanks in part to the hard work and leadership of Senator Hertel and Representative [Elizabeth] Warren, these bills will put more dollars in Michigan classrooms and increase funding for firefighters battling cancer. This is a real bipartisan win for our state,” Whitmer added.
Under the law, sports betting operators would be required to pay an application fee of $50,000 (£38,500), a one-off fee of $100,000 when the licence is issued and $50,000 in annual fees.
Sports betting suppliers would also be required to obtain a licence, paying a $5,000 application fee, a $5,000 initial licence fee, and a $2,500 annual fee. All licences run for five years.
Operators are limited to using one internet sports betting platform only, and are required to use official league data, unless they can present the Michigan Gaming Control Board (MGCB) with evidence that data is being offered at a “commercially unreasonable” rate.
The law imposes a tax rate of 8.4% on all operator adjusted gross sports betting receipts. However, money used in so-called free-play promotions can be deducted from receipts before taxes are collected.
The law also creates the “Internet Gaming Fund”, requiring licence fees and taxes collected to be deposited into the fund. It also authorises the MGCB to develop responsible gambling measures and a statewide self-exclusion database.
In addition to the main sports betting law, a separate law regulating and legalising daily fantasy sports has also been passed.
Known as the Fantasy Contests Consumer Protection Act, the legislation mirrors the 8.4% tax rate but imposes a substantially reduced licence fee. Under the law, DFS operators would be required to pay an initial application fee of $10,000 with an annual licence fee of $5,000.
Picture credit: RiverNorthPhotography/iStock