The U.S. Supreme Court has shown the way for the increasing popularity of gambling across the nation last year. There are 13 states along with the District of Columbia who has been approved for the sports betting in the US. The administrators in Michigan are trying to bring attention to the plan, which will help Michigan to be in the same circle of sports betting.
One of the republican administrators of the state Brandt Iden is giving new hopes to the betting sports in Michigan. He told the House Regulatory Reform Committee about his travel to one of the casinos which is a mile away in the Michigan border in the state of Indiana. He said about his loss of $50 for betting on the U-M Versus Army Football game and won $100 against the Lions in the NLF match against Arizona Cardinals.
Brandt Iden further added that one should always bet against “Lions” to win it surely.
He is the active force for the expansion of legalized gambling. Iden acted as a forerunner in the last session of the bills, which would legalize betting as a fantasy sport and online gambling to run in all the 23 tribal states along with the three Detroit casinos.
The bill was supported by a large number of lawmakers and other political members, but it was objected by the former Governor Rick Snyder as he feared a loss of revenue in the state which is being used in schools.
Iden said that he is hoping a new outcome from the new governor. He said that betting will be fruitful at some point of time and if the betting doesn’t start in Michigan, then they are sure to lose customers from other states.
According to the bill, 8% tax will be generated from sports betting, which is between $8.7 million to $11.2 million. Thus, the sports betting the market will earn up to $225 million from casinos and online betting.
The 25 years old law has affected badly to the sports betting outside Nevada; therefore, expanding legalized gambling will increase the source of income for the government. It will be easier for people to bet traditionally or live betting on baseball or football games.
The bill for online gambling and sports fantasy is put on hold by the governor because the present governor Gretchen Whitmer find 8% tax rate is too low for the state. Therefore, he has opposed the sports betting bill and asked to increase the tax rate to 15%.
According to Iden, he doesn’t agree with the tax rate requested by the government officials. He said the rate is too much as a 15% tax rate along with a 3.25% additional rate for Detroit city wouldn’t be possible. He is proposing for 9 % or 9.5% as the tax rate to the governor.
According to the other states, the tax rate for legalized betting ranges from 6.75% (in Nevada) to 51% (in Rhode Island). The tax rate of 8% will make Michigan the second-lowest after Nevada. The Indiana state is paying 9.5% tax rate whereas Illinois will be paying 30% rate once the sports betting starts next year.
It has become a main issue with the administration, and no other bills will be passed until a resolution comes out as said by Iden. State’s Representative Sarah Cambensy, D-Marquette said that Michigan should get a tax rate as of New Jersey which is 8.5% and not less than it. The Committee chairman Representative Michael Webber said that any changes in the tax rate would be made in the next committee level in the coming week.
