Bill Number: HB 4311
Subject: Internet Gaming
Sponsor: Brandt Iden
MASA Position: Oppose

Description: Creates the Lawful Internet Gaming Act which promulgates rules as well as imposes a tax on online gaming. HB 4311 would subject internet gaming licensees to an 8 percent tax. Currently, brick and mortar casinos are subject to a 15 percent tax. There would need be significant new revenue generated from internet wagering in order to offset the cost of this legislation to the State School Aid Fund. Currently, a wagering tax of 19 percent is levied on casino adjusted gross receipts (AGR). Of that amount, 42.6 percent ($0.081) is distributed to the SAF. Under HB 4311, internet gaming AGR would be taxed a rate of 8 percent and 5 percent of that total amount or $.004 of the tax revenue would be deposited in the SAF. The House Fiscal Agency stated that for every dollar of AGR lost at a brick-and-mortar casino due to internet gaming would result in a $.077 loss to the School Aid Fund. For example, a reduction of 1 percent wagering loss at Detroit Casinos would translate to a $1,169,721 loss to the School Aid Fund. In order to hold the SAF harmless, profit generated by internet wagering would need to be $2,436,918,384.

Position Notes:
Position Date: 04/18/2019
Bill Status: Referred to Committee on Ways and Means, 3/19/19
PA Number: NA
HB4311 link