Michigan Gov. Whitmer Proposes Online Casino Tax Hike
Michigan Governor Whitmer proposes raising the online casino tax rate to 36% and implementing a per-wager surcharge on sports betting.Summary
Michigan Governor Gretchen Whitmer has proposed increasing the state’s online casino tax rate from a progressive scale up to 28% to a flat 36% as part of her Fiscal Year 2027 budget. The proposal also includes a per-wager surcharge on mobile sports betting, mirroring Illinois’ model, with rates of 25 cents for the first 20 million bets and 50 cents thereafter, projected to generate $38.8 million in revenue. Currently, only a few top operators pay the 28% rate, but more are approaching that threshold. Additionally, most operators would lose the ability to deduct promotional credits from gross revenue starting in 2027. This proposal comes amid concerns about a potential negative impact on betting volume, similar to what Illinois has experienced after implementing a similar surcharge, where wagering volume declined significantly. However, Michigan’s current tax rate is lower than many other states, potentially mitigating the impact of the increase.
(Source：Gamblingnews)