The bill in Michigan set to legalize and regulate sports betting, internet gambling, online poker and daily fantasy sports is expected to pass tomorrow according to state Sen. Curtis Hertel Jr.
The sports betting portion sees a 8.4% tax which is actually lower than the other forms of gambling on the bill. This is probably because sports betting has one of the lower profit margins of all types of gambling. This number is way down from the 15% asked for by Michigan state treasury. It is important for them they realize that there is a slim margin and that they have to make it profitable for the operators.
Michigan claims that a large portion of the proceeds wil go to the school system. The physical locations are instructed to pay the City of Detroit and extra 1.25% in an effort to help that crumbling city.
Michigan’s Senate Regulatory Reform Committee on Tuesday morning unanimously voted to move a package of gaming bills, including sports betting, to the Senate floor.
After ongoing negotiations with the governor, the tax rate for sports betting will be 8.4 percent.
— Sports Handle (@sports_handle) December 10, 2019