Bill Number: HB 4916
Subject: Sports Betting
Sponsor: Brandt Iden
MASA Position:

Description: Would create a Sports Betting Act, which would create a set of rules for people to engage in sports betting, establish a tax for conducting sports betting, and prohibit certain actions and prescribe penalties for violation. The tax rate in the sports betting bill would be 8.75%, plus the 3.25% for Detroit casinos with that portion going directly to the city. Sports betting would be defined in the bill as the business of accepting wagers on athletic events or portions of athletic events, the individual performance statistics of athletes in an athletic event or other events, or a combination of any of the same by a system or method of betting approved by the Division of Sports Betting in the Michigan Gaming Control Board, including mobile applications and other digital platforms that use communication technology to accept wagers. Sports betting would include single game bets, teaser bets, parlays, over-under, moneyline, pools, exchange betting, ingame betting, in-play bets, proposition bets, and straight bets. Sports betting would not include fantasy contests. Under the bills, the tax rate would depend on how much revenue the casino receives from online gaming so that small, tribal casinos that apply for a license to have online gaming could pay less while larger casinos that might see more play would pay more. 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% 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. Another area of concern is that internet gaming may reduce lottery sales, specifically instant ticket or iLottery sales, because many individuals may find them to be similar.

Position Notes:
Position Date:
Bill Status: Introduced (9/3/2019; Referred to Committee on Regulatory Reform), Referred (9/17/2019 to Committee on Ways and Means) Reported (10/29/2019; to the Floor as substitute (H-3) Passed (63Y-45N), Referred (11/5/2019; to committee on Regulatory Reform) Reported (12/11/19; as (S-1) to Floor) Passed (35Y-3N; as (S-2), Concurred in House (100Y-8N), Enrolled (12/11/19), Presented (12/19/19) Approved (12/20/19)
PA Number: 149'19
HB4916 link