A key figure in Michigan’s state politics is throwing his hat into the ring to help push for legal online gambling and sports betting in the US state.
Rep. Brandt Iden, R-Oshtemo Township, declared that he would be pushing for legalisation before the neighbouring state of Ohio decides to legalise online gambling and sports betting.
Brandt Iden is positive that Michigan will have legalised gambling and sports betting before the end of the year, though his negotiations with Gov. Gretchen Whitmer‘s administration seem to have faltered.
Rep. Iden is the chair of the Michigan House Ways and Means Committee, which puts him in a powerful position in the state legislature. His position and influence could help sway enough votes to get both bills to pass this year. However, the main opponent is the current state administration.
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According to Tiffany Brown, spokeswoman for Governor Whitmer, the state is willing to discuss things but worries that the bill would hurt revenue meant for public education.
In a statement, Brown said
The administration has taken every meeting we’ve been invited to regarding this legislation, and we have continue to work closely with the bill sponsor, tribal leadership and stakeholders to attempt to address our concerns.
Revisions to the current bills are being made and they should be ready for consideration before the House Ways and Means Committee. The main change is on the sports betting and online betting tax rates. The original rate was set at eight percent. The difference is major because the Whitmer administration wants a 40 percent tax on online gambling and a 15 percent tax on sports betting.
Professional sports leagues have already agreed to the bill and are on board. Now, the only obstacle would be negotiations on the tax rate. The higher taxes are supposed to make up for the loss in the current gambling operations.
The new tax program for sports betting would be to have the 23 tribal casinos pay an 8.75 percent tax while the three Detroit casinos pay a 12 percent tax rate. Additionally, internet gambling will face a tiered taxation rate. This starts at 4 percent and can go as high at 26.25 percent based on different parameters.
The Michigan bills were first introduced four years ago and have been enjoying bipartisan support since then. It is now even more urgent to approve it as neighbouring states are starting to legalise sports betting. The push to legalise sports betting in 2018 was vetoed by the Republican former Gov. Rick Snyder. This was mainly because of potential tax revenue losses among current gaming operations.
This is the same reason that the Whitmer administration is using to combat the bill. However, Brandt Iden argues that existing operations will only experience negligible losses but thinks that the new tax rate should accommodate the revenue loss concerns.
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