{"id":19985,"date":"2026-02-17T15:45:14","date_gmt":"2026-02-17T12:45:14","guid":{"rendered":"http:\/\/staging.igamingamerika.com\/?p=19985"},"modified":"2026-02-17T15:45:14","modified_gmt":"2026-02-17T12:45:14","slug":"michigan-governor-suggests-betting-tax-and-higher-online-gambling-taxes-in-2027-budget","status":"publish","type":"post","link":"https:\/\/igamingamerika.com\/index.php\/2026\/02\/17\/michigan-governor-suggests-betting-tax-and-higher-online-gambling-taxes-in-2027-budget\/","title":{"rendered":"Michigan Governor Suggests Betting Tax and Higher Online Gambling Taxes in 2027 Budget"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Michigan Governor Gretchen Whitmer is weighing a move to introduce a gambling tax modeled after Illinois\u2019s system, which would impact both sports betting and other forms of online gambling in the state. Her recent budget proposal for the 2027 fiscal year outlines plans for a direct tax on individual bets, signaling a shift in Michigan\u2019s gambling policy landscape.<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-white-color\"> Michigan Gambling Tax<\/mark><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed betting tax would operate similarly to Illinois\u2019s recent approach. As detailed in the budget documents, Michigan would impose a fee of 25 cents on the first 20 million bets placed annually by each licensee. Beyond this cap, the tax rate would double to 50 cents per bet. Whitmer\u2019s projections suggest that this new tax could generate approximately $38.8 million in revenue during the fiscal year, funds that would be allocated to the Medicaid Benefits Trust Fund.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Comparing Michigan\u2019s current stance with the proposed changes, the budget documents note that Michigan\u2019s sports betting tax rate ranks near the bottom nationally, currently 28th out of 30 states that have legalized sports betting. It also remains the lowest in neighboring states, highlighting the potential for increased revenue if the new tax structure is adopted. The documents observe: \u201cThe same tax was implemented in Illinois last year. Michigan\u2019s sports betting tax rate currently ranks 28th out of the 30 states that have legalized the activity. Michigan\u2019s tax rate remains the lowest among neighboring states.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Illinois\u2019s experience offers a cautionary tale. After implementing a similar tax, operators responded with measures such as transaction fees and increased minimum bets to offset the higher costs. Data from Illinois shows a decline in betting activity following the tax\u2019s introduction, with industry groups like the Sports Betting Alliance linking the drop to the new fee per bet. Nonetheless, Illinois\u2019s model has become a benchmark for Michigan as Whitmer considers similar reforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Beyond the betting tax, the budget proposal also includes adjustments to the taxation of online gambling. Notably, Whitmer aims to eliminate the deduction for free bets, an incentive used by operators to attract new customers, from taxable income. This change is expected to bring in an additional $21.1 million in revenue. The documents explain: \u201cFree play is an incentive for bettors, allowing them to start placing sports bets without any initial cost. According to the budget proposal, sports betting providers would no longer be able to deduct these bets.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read also:<a href=\"http:\/\/staging.igamingamerika.com\/chile-files-lawsuit-over-money-laundering-allegations-involving-gambling-payment-providers\/\" target=\"_blank\" rel=\"noreferrer noopener\"> Chile Files Lawsuit Over Money Laundering Allegations Involving Gambling Payment Providers<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, the budget suggests increasing the marginal tax rate for online casinos with revenue exceeding $185 million. For operators above this threshold, the tax rate would rise by eight percentage points on the portion of revenue above that amount, reaching 36%. The documents estimate that only three online casinos currently meet this threshold, but this change could generate roughly $135.5 million in new tax revenue in 2027, much of which would go toward supporting health and wellness programs through the Medicaid Benefits Trust Fund.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite these proposals, industry resistance is anticipated. The gambling sector is likely to oppose the tax increases, and the measures still need to pass through legislative approval. As such, they may not make it into the final state budget.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michigan Governor Gretchen Whitmer is weighing a move to introduce a gambling tax modeled after Illinois\u2019s system, which would impact both sports betting and other forms of online gambling in the state. Her recent budget proposal for the 2027 fiscal year outlines plans for a direct tax on individual bets, signaling a shift in Michigan\u2019s &hellip;<\/p>\n","protected":false},"author":1,"featured_media":20393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[413,22],"tags":[414,5],"class_list":["post-19985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-news","tag-gaming-in-michigan","tag-sports-betting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Michigan Governor Suggests High Betting and online Gambling tax<\/title>\n<meta name=\"description\" content=\"Michigan Governor Gretchen Whitmer is weighing a move to introduce a gambling tax modeled after Illinois\u2019s system, which would impact both sports betting and other forms of online 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