Both branches of the State Legislature have already passed the bill during the last day of the 2018 legislative session. However, former Gov Rick Snyder vetoed the Michigan online gambling bill before he left office on January 1.
With a new year and a new governor, Michigan lawmakers are reviving the bill. They hope that the passing of the legislation will help the state’s sluggish economy. In fact, Rep. Brandt Iden will reintroduce the Michigan online gambling bill.
According to gambling news sources, Detroit is having a hard time since the Great Recession. Although it managed to repair its finances after declaring bankruptcy, the city needs new sources of income.
That’s where taxes on online gambling comes into play. It can have a huge impact on Detroit and the state as well. In addition, casinos and local businesses will also see their revenues improve. Although Snyder vetoed the bill, there is still strong support for the Michigan online gambling bill. Sportsbook pay per head reviews are optimistic that the new governor will legalize sports betting soon.
Why Snyder Vetoed the Michigan Online Gambling Bill
After the Supreme Court overturned the ban on sports betting, Michigan was going to be the fifth state to legalize the activity. However, the former governor vetoed the bill. According to Snyder, he thought online sports betting will hurt lottery revenues. In addition, he felt that the education sector will not benefit from online gambling revenues.
Many pay per head sportsbook experts rebutted the former governor’s claims. Case in point, they said legalization of sports betting in other states didn’t affect the revenue of existing lotteries.
The proposed bill will charge an 8 percent tax on online betting revenues. The present tax rate for casinos in Detroit is 19 percent. Allocation of the tax revenues was one of the issues tackled in the Senate before they approved the legislation.