Key Highlights
Contents
- Michigan’s Senate approved an $88.1 billion spending plan while eliminating Governor Whitmer’s gambling industry tax proposals
- The governor sought a per-wager charge on sportsbooks ranging from $0.25 to $0.50 per bet, expected to generate $39 million annually
- Whitmer’s package included boosting online casino taxation from 28% to 36% for operators earning over $185 million, projected to yield $136 million yearly
- Both GOP House Speaker Matt Hall and Democratic Senator Sarah Anthony expressed opposition, with Anthony warning the timing could appear insensitive
- Senate members voted to eliminate the gambling tax measures along party lines, leaving uncertainty about whether Whitmer will attempt to revive them
Michigan’s Senate advanced an $88.1 billion spending package last week, deliberately excluding Governor Gretchen Whitmer’s proposed taxation increases targeting the sports wagering and online gaming sectors. The decision represents a significant setback for her revenue generation plan.
The governor had pursued approximately $800 million in fresh tax revenue from multiple sectors. Gaming-related taxation comprised a substantial portion of that target amount.
Her proposal featured a per-wager charge on sports betting platforms patterned after Illinois’ approach. The structure would have imposed $0.25 on each wager up to the first 20 million placed annually.
Beyond that benchmark, each subsequent bet would have incurred a $0.50 charge. Budget analysts calculated this per-wager system could produce $39 million in yearly revenue for state coffers.
Whitmer additionally aimed to eliminate promotional write-offs currently utilized by sportsbooks and internet gaming operators. Budget experts concluded that removing these deductions would contribute an extra $21 million in annual collections.
Proposed Online Gaming Tax Structure
Regarding internet casinos, the governor’s blueprint called for an 8-percentage-point levy increase on revenues exceeding $185 million. This adjustment would have elevated the taxation rate from 28% to 36% for operators surpassing that revenue threshold.
State financial forecasts indicated this modification alone could deliver $136 million annually. When combined with the sports wagering provisions, the gaming taxation package represented the most comprehensive component of her wider revenue initiative.
Whitmer justified the additional revenue as necessary to counter what she characterized as a multi-billion-dollar federal funding reduction. She attributed this projected shortfall to the One Big Beautiful Bill Act of 2025, legislation signed into law by President Donald Trump.
To address the deficit, she assembled the gaming taxes alongside proposed increases on tobacco products, vaping devices, and digital advertising services. However, the comprehensive package encountered immediate political resistance.
Last February, Republican House Speaker Matt Hall rejected the concept outright. He declared that tax increases would not appear in the finalized budget agreement.
Opposition Spans Party Lines
Criticism extended beyond Republican ranks. Democratic Senator Sarah Anthony from Lansing characterized potential tax increases as possibly “tone-deaf” given current economic conditions affecting residents.
Anthony urged fellow legislators to remain “mindful of what revenue options are there and whether they’re impacting working families.” Her statements illustrated growing unease within the governor’s political party.
The Senate proceeded to eliminate the gaming tax components from its budget version through a party-line vote. This action creates a divide between the Senate’s spending plan and the governor’s funding objectives.
The Senate’s $88.1 billion spending blueprint slightly exceeds Whitmer’s initial $88 billion framework. Yet it departs dramatically regarding funding mechanisms.
The budget also contrasts with the $78 billion measure approved by the Republican-controlled House during April. Representatives from both legislative chambers must now reconcile these discrepancies ahead of the July 1 deadline.
Missing this deadline triggers no statutory consequences. Nevertheless, legislators generally strive for timely completion enabling school districts to establish their budgets with confidence.
Whitmer’s administration has not indicated whether she intends to resurrect the gaming tax proposal during concluding budget negotiations.
