Categories: NewsSports Betting

Michigan Senate Kills Whitmer’s Sports Betting Tax Plan — Bettors Avoid Illinois-Style Surcharges for Now

Michigan sports bettors escaped a major fee increase last week when the state Senate passed an $88.1 billion budget without Gov. Gretchen Whitmer’s proposed per-wager sports betting tax and online casino tax hikes. The vote was bipartisan, with multiple Democrats joining Republicans in stripping the measures from the budget over concerns about a repeat of what happened in Illinois after that state adopted similar legislation.

Whitmer had proposed a fee structure that would have charged mobile sportsbooks $0.25 per wager on the first 20 million bets processed annually, rising to $0.50 per wager above that threshold. State officials projected the measure would generate approximately $39 million per year. The governor also wanted to eliminate the ability of sportsbooks to deduct promotional bets from their taxable revenue, which would have added another $21 million in estimated state revenue, and proposed a higher tax rate on online casino revenue above $185 million annually.

Why Illinois Is the Cautionary Tale

After Illinois adopted a per-wager tax in 2025, several major sportsbooks responded by raising minimum bet thresholds and introducing new transaction fees for bettors. Lawmakers in both chambers of the Michigan legislature cited those developments as evidence that similar taxes get passed through to consumers rather than being absorbed by operators. The risk of driving bettors to offshore sites was also a recurring concern. State Sen. Sarah Anthony, a Democrat, said after the vote that lawmakers were “being mindful” of which revenue options could impact working families.

What This Means for You Right Now

If you bet on sports in Michigan, nothing changes in the near term. The existing tax structure on sportsbooks remains in place, and there is no scheduled fee increase on the horizon. The budget still needs to be reconciled with the House version, but the per-wager tax and casino tax hike are unlikely to re-enter. A more modest bill proposing a 1% increase to sports betting tax rates is still circulating at the legislature. Michigan sports bettors who want to understand the full landscape can review our Michigan sports betting guide, which covers legal operators and current rules in the state.

Ernie Horn

Ernie is a 25-year veteran of the newspaper industry. He spent those early years working as a sports reporter and editor, but made the move back to the digital world in 2022. Ernie covers college football and NFL betting for Hello Rookie.

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Ernie Horn

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