The new taxation plan would operate on a tiered system ranging between 4 and 23 percent, and would be based on the amount of revenue a site was gaining for the new forms of legalized gambling.
Those numbers are still nowhere near the 40 percent for online gaming and 15 percent for sports betting that Michigan Governor Gretchen Whitmer is seeking. Whitmer believes the high taxation rate will be necessary to offset losses in existing gaming entities due to the new forms of gambling.
Proponents of the bill are fearful of the impact on Michigan if neighboring Ohio were to legalize sports betting first. Ohio is among six U.S. states that currently have a sports betting bill before the state legislature. The original sports betting bill was vetoed by previous Michigan Governor Rick Snyder.