Michigan Senate Blocks Online Casino Tax Hike Casino By lines May 9, 2026 Michigan online casino operators kept their existing tax rates this week. Michigan Gov. Gretchen Whitmer had proposed raising the state’s iGaming tax from 28 percent to 36 percent. The Michigan Senate stripped that proposal from the state’s FY27 budget on May 7, 2026. What Whitmer Proposed and Why Michigan Lawmakers Said No Whitmer’s FY27 budget included two online gambling tax changes. The first targeted Michigan iGaming revenue exceeding $185 million per year. Revenue below that threshold would stay at the existing 28 percent rate. Revenue above $185 million would increase to 36 percent under Whitmer’s plan. The second proposal copied Illinois’s per-bet sportsbook tax model. Michigan sportsbooks would pay $0.25 for each of their first 20 million wagers annually. That fee would double to $0.50 for every bet placed after that threshold. Whitmer sought the combined revenue to address a Medicaid shortfall. Federal budget cuts created that gap in Michigan’s healthcare funding. Democratic State Sen. Sarah Anthony pushed back publicly. Anthony told reporters the proposal would be “tone-deaf” given broader economic pressures. Michigan’s Democratic-controlled Senate passed an $88.1 billion FY27 budget without either tax increase. The Michigan House also excluded both proposals from its own budget draft. Budget talks between Michigan’s legislature and Whitmer’s office are continuing. Related Casino Reviews Sweepstakes Casinos in Michigan 2026: Why They Are BannedSweepstakes Casino Revenue Down $1B in 2026 Ban WaveBest Sweepstakes Casinos in the US: May 2026 Rankings This content is for informational purposes only. Legal Sports Report first reported the Michigan Senate budget vote on May 7, 2026 (Legal Sports Report). Additional reporting by PlayMichigan and Covers.
