Legislators in Michigan Temporarily Suspend Discussions on Sports Gambling to Address Budget Matters

Chatting About Michigan Sports Betting:

The Road to Legalized Sports Betting:

Michigan Representative Brandt Iden is no stranger to hurdles, so the latest delay in sports betting action is just another speed bump in his book. Recently, Iden temporarily tucked away sports betting on the sidelines while state lawmakers tackle their October 1 budget deadline.

In a chat with Sports Handle, Iden shared his frustrations: "We're in the process of working on our budget, ... and I had been working diligently to try to include iGaming, sports betting and everything that I've been working on (in the budget), but because of some other things I wasn't successful," he admitted. "Hopefully, we'll revisit everything in October."

Despite the setback, Iden is optimistic that sports betting will sail through the state legislature by year's end. On Tuesday, it was sent to the Ways and Means Committee, where it'll wait until the budget is sorted out.

Sports Betting: A Quick Launch in Michigan?

Iden's optimism isn't just based on his three-year commitment to sports betting - last year, Iden steered a package of gaming bills that prepped the ground for legal sports betting all the way to the governor's desk, only to have lame-duck Governor Rick Snyder veto it at the New Year's Eve weekend. The silver lining? Iden has solid ties in the legislature, as well as backing from the powerful tribal gaming stakeholders in the state. His main challenge now is to win over newbie Governor Gretchen Whitmer.

Given Michigan's existing gaming infrastructure, Iden dreams big - he envisions bettors placing retail sportsbook wagers by March Madness, or, if things fall into place, even the Super Bowl. Of course, that depends on the legislature and Whitmer legalizing it.

If there's a snag in the process, it's taxes. Iden's current bill proposes an 8% tax rate on licensees' sports betting gross revenue. He reveals Whitmer wants 15%. On the iGaming front, Whitmer calls for a 40% tax rate, which Iden considers excessive. Negotiations are on the table, but Iden is firm: 15% is high. Potential operators have pushed for tax rates of 10% or less, due to sports betting's comparatively lower profit margins.

During her gubernatorial campaign, Whitmer voiced her support for legal sports betting. Even at the proposed 8% tax rate in the bill, Detroit's three casinos will pay more than 10% on sports betting - the city carries a 3.25% local tax.

@BrandtIden: Michigan Sports Betting Still in the Game

Michigan: Playing Catch-Up?

At one point, Michigan seemed poised to lead the way on sports betting. But politics and tribal wrangling have slowed things down. Just like gov. J.B. Pritzker signed Illinois sports betting into law this year, Iowa and Indiana have legalized sports betting, and sportsbooks are live in both states, with mobile sportsbooks also up and running in Indiana. Illinois legalized early last summer, and is in the process of drafting regulations. Ohio lawmakers are seriously considering sports betting, and Wisconsin lawmakers are at least open to the idea, according to the State Journal [1].

"With Illinois and Indiana (legalizing), and Ohio trying to get it together, Michigan will be left behind in the Midwest, so that makes it incumbent upon us to move forward," Iden told us. "We've got a really good (bill), we've been working on it for three years."

In its current form, the bill does contain one other potentially contentious provision - it calls for a mandate to use "official league data" on in-game wagers. If the Michigan legislature moves forward with the mandate, Michigan will join Tennessee and Illinois as the third state requiring sportsbooks to purchase data from the professional leagues' authorized third-party suppliers. Some stakeholders argue that official data is the best available, but they don't want to be forced into a commercial agreement with the government.

Iden included the mandate, feeling it's a fair compromise, considering Detroit's pro sports teams owners, from the Ford family (NFL Lions) to Little Caesar's magnate Mike Ilitch (NHL Red Wings and MLB Tigers) to relative new sports team owner Tom Gores (NBA Pistons), have strong ties to the community and political influence.

Tribal Interests: Key to MI Sports Betting Success

Iden has navigated the tribal casino interests alongside negotiating with Michigan's tribes, which operate more than two dozen casinos throughout the state. A sticking point is that when one group of tribes negotiated its compact with the state way back in 1993, it didn't consider sports betting. Iden has earned their trust, and in exchange for Whitmer's commitment to renegotiate those compacts, including sports betting, he's willing to push his bill forward. As far as states that have legalized sports betting, Michigan boasts one of the biggest tribal gaming presences.

Iden's 4916 is tie-barred to the iGaming bill HB 4311, which means that bill must pass in order for sports betting to become legal.

[1] State Journal, "Wisconsin lawmakers moving ahead with sports betting legislation," June 24, 2021.

[2] SBC Gaming, "Kambi ready to roll in Ohio after striking JACK Entertainment deal," September 19, 2019.

[3] Michigan Gaming Control Board, "Information on Legal Online Gambling," 2019.

[4] Clarion Content, "Official Data Mandates and Michigan Sports Betting," April 13, 2022.

Enrichment Data:

Legality and Taxation: Sports betting has been legal in Michigan since December 2019, when Governor Gretchen Whitmer signed HB 4916, allowing both online and in-person sports betting [3]. The tax rate for sports betting operators is set at 8.4% of gross gaming revenue, with an additional 1.25% for operators located in Detroit due to the city's casino tax [3].
Negotiations with Tribal Gaming Stakeholders: While specific recent negotiations between Governor Gretchen Whitmer and tribal gaming stakeholders regarding sports betting are not detailed in the available search results, tribal casinos have been involved in Michigan's regulated gaming market. Tribal casinos operate under compacts with the state, which allow them to offer sports betting alongside commercial casinos and online platforms.
Regulatory Actions: The Michigan Gaming Control Board (MGCB) has been actively enforcing laws against illegal online gambling operators. As of May 2025, the MGCB has issued numerous cease-and-desist orders to unlicensed operators, including BetUS and several Panama-based sites, aiming to protect consumers and maintain compliance with state gaming laws [1][2][5]. There is no specific mention of negotiations with Governor Whitmer regarding sports betting in these recent actions.
Sports Betting Legalization and Tax Rates: The current bill calls for an 8% tax rate on licensees' sports betting gross revenue. Governor Whitmer wants 15%, while potential operators have urged tax rates of 10% or less, given the smaller profit margins in sports betting [1].
Governor Whitmer's stance on Sports Betting: During her gubernatorial campaign, Whitmer stated that she supports legalizing sports betting [1].
Tribe Compacts: The 1993 compact between the state and a group of tribes did not consider sports betting. Iden has developed enough goodwill to secure the tribes' backing for his legislation, contingent upon Whitmer committing to renegotiating those compacts to include sports betting [1].
Tie-Barred Bills: Iden's 4916 is tied to HB 4311, which must pass for sports betting to become legal [1].
Official League Data: The current bill mandates the use of official league data on in-game wagers. If implemented, Michigan will be the third state to require sportsbooks to purchase data from the professional leagues’ authorized third-party suppliers, with Tennessee and Illinois leading the way [4].
Sportsbooks: Sportsbooks are live in Illinois and Indiana, while mobile sportsbooks are operational in Indiana [1].
Ohio and Wisconsin Discussions: Ohio lawmakers are seriously considering sports betting, and Wisconsin lawmakers are at least open to the idea, the State Journal reports [1].
Future SBC Gaming Deal: Kambi Group plc, a global sports betting provider, secured an exclusive, multi-channel sportsbook partnership with JACK Entertainment, an urban gaming company, with plans for the deal to expand to Ohio [2].
In the midst of the Illinois and Indiana sports betting surge, Michigan lawmakers face pressure to "move forward" and avoid falling behind, according to Representative Brandt Iden.
Iden's aspirations for the launch of Michigan sports betting involve retail sportsbook wagers being placed by March Madness or the Super Bowl, but this depends on the legislature and Governor Gretchen Whitmer legalizing it.
The current tax rate proposed by Iden for sports betting operators is 8%, although Governor Whitmer desires 15%. Negotiations are taking place to reach a compromise, as potential operators seek tax rates of 10% or less.