While other states are reaping the benefits of legal sports betting industries, Michigan continues to lag behind. The state is still trying to jump start efforts to introduce a bill that will see the legalization and regulation sports betting, and where all stakeholders will be in agreement. So far, seven drafts have been submitted and have failed.
On Wednesday, Rep. Brandt Iden, who held up the industry back in March as he couldn’t get the three commercial casinos and 26 tribal casinos to agree with his igaming package, introduced new legislation. Iden’s bill, while six months later than planned, seems to have everyone on board. However, the next potential hurdle is the state Governor.
The eighth draft removes the right of licensed operators to run skins. Previous drafts allowed for up to three per operator; Iden’s new bill restricts each operator to just one platform.
Operators will pay $200K for a sports betting license, which will need to be renewed each year at a cost of $100,000.
Gross sports betting revenue will be taxed at 8%.
Within a year, the Michigan Division of Sports Betting needs to establish all the rules pertaining to the new industry. Once the bill passes, it will take another 3 months until it becomes law.
$1 million each year needs to be earmarked for problem gambling prevention and treatment.