Michigan Lawmakers Blocks Governor’s Push for Per-Bet Sports Wagering Tax

The Michigan Senate passed its $88.1 billion budget plan last week, but lawmakers left out Governor Gretchen Whitmer’s proposed gambling tax hikes. 

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The Senate’s plan is slightly larger than Whitmer’s $88 billion proposal, yet it removed her request for $800 million in new taxes, including major increases on sports betting and online casinos. That decision leaves her revenue plan stalled as talks move forward. 

The Senate’s budget also stands against the $78 billion package approved by the Republican‑led House in April, meaning negotiators must settle big differences before the July 1 deadline. While missing the deadline carries no legal penalty, lawmakers usually aim to finish on time so schools can plan their own budgets with certainty.

Whitmer’s ambitious plan

Whitmer’s gambling tax package was wide. She wanted a per‑bet fee on sportsbooks, modeled after Illinois, that would have charged $0.25 on each of the first 20 million wagers annually and $0.50 on every bet after that. State officials said this could raise $39 million a year

She also proposed ending promotional deductions, which analysts estimated would add $21 million. For online casinos, Whitmer suggested an 8‑point surcharge on revenue above $185 million, raising the tax rate from 28% to 36% once that threshold was crossed.  That single measure was projected to generate $136 million annually. 

Whitmer argued the state needed new revenue because of what she described as a multibillion‑dollar hit from the federal government tied to President Donald Trump’s One Big Beautiful Bill Act of 2025.

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To close that gap, she bundled gambling taxes with other proposals, including new levies on tobacco, vaping products, and digital advertising.

The gambling portion of her plan was the most detailed, but resistance came quickly. In February, House Speaker Matt Hall, a Republican, dismissed the idea outright, saying, “We’re not going to do any of that. There will be no tax increases in this budget when we do this deal.”

Even members of her own party disapproved of the proposed increase, with Senator Sarah Anthony of Lansing telling colleagues that raising taxes while “people are hurting” across Michigan could be “tone‑deaf.”

“We want to be sure that we’re being mindful of what revenue options are there and whether they’re impacting working families,” Sen. Anthony stated last week. 

With that, the Senate voted along party lines to strip the tax provisions from its version of the budget. Whitmer’s office has not said if she will try to revive the gambling tax plan during final negotiations.

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Source: Next.io