TLDR The Michigan Senate passed an $88.1 billion budget but removed Governor Whitmer’s proposed gambling tax increases Whitmer wanted a per-bet fee on sportsbooks that would have charged $0.25 to $0.50 per wager, raising an estimated $39 million a year She also proposed raising online casino tax rates from 28% to 36% on revenue above $185 million, projected to bring in $136 million annually Republican House Speaker Matt Hall rejected tax increases outright, and even Democratic Senator Sarah Anthony called the plan potentially “tone-deaf” The Senate voted along party lines to strip the tax provisions, and Whitmer’s office has not said whether she will push the plan during final budget talks
The Michigan Senate approved an $88.1 billion budget last week but left out Governor Gretchen Whitmer’s proposed tax increases on sports betting and online casinos. The move stalls a key part of her revenue strategy.
Whitmer had sought roughly $800 million in new taxes across several industries. The gambling-related proposals made up a large chunk of that figure.
Her plan included a per-bet fee on sportsbooks modeled after a system used in Illinois. The fee would have charged $0.25 on each of the first 20 million wagers placed annually.
After that threshold, every additional bet would have been taxed at $0.50. State officials estimated the per-bet fee alone could raise $39 million per year.
Whitmer also wanted to end promotional deductions used by sportsbooks and online casinos. Analysts said eliminating those deductions would have added another $21 million in annual revenue.
Whitmer’s Online Casino Tax Proposal
For online casinos, the governor proposed an 8-point surcharge on revenue above $185 million. That would have pushed the tax rate from 28% to 36% once a casino crossed that line.
State projections put the expected revenue from that single