With bills aimed at increasing Michigan sports betting and online casino tax rates, a major sportsbook is asking for help.
FanDuel sent out an email Monday asking Michigan sports betting customers to ask legislators not to increase the tax rate on sportsbooks and online casinos. The move comes as two bills, SB 1193 and SB 1194, were introduced to raise the sports betting and online casino tax rates.
The bills are likely conversation starters, as one raises the online casino tax by 1% and the sports betting tax by 0.1%. As in 2024, sports betting tax rates will likely be a popular legislative topic in 2025.
FanDuel call to action
FanDuel’s email ends with a call to action and a button to a form on the Sports Betting Alliance website. The SBA consists of FanDuel, BetMGM, DraftKings, and Fanatics.
“Use the link below to tell your state representatives NO to a tax hike on legal sports betting and iGaming,” it reads. “Why does this matter? A new tax on sports betting and casino games will have a MAJOR impact on how you enjoy game day AND your favorite games. Promotional offers and the best odds will be at risk if politicians rush in this surprise tax hike.”
Sports betting tax rate increases
In 2022, New York set its sports betting tax rate at 51%. Following that, lawmakers in active markets have begun looking at their existing rates.
In Ohio, less than a year after sports betting launched, Gov. Mike DeWine doubled the tax rate to 20%. In July, Illinois Gov. JB Pritzker signed a bill creating a tiered system ranging from 20% to 40%. The tax rate had been 15%.
Other jurisdictions, including New Jersey, Massachusetts and Louisiana, have also raised the issue.
However, some lawmakers who are friendly to the industry, like Ohio Sen. Niraj Antani, are pushing back. In November, Antani introduced a bill to return Ohio’s rate to 10%.
