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The Sports Betting Alliance, an advocacy organization dedicated to legal, regulated online sports wagering and online gaming, is publicly opposing Michigan Gov. Gretchen Whitmer‘s proposal to impose a per-bet tax on customers using Michigan sportsbooks.
Whitmer proposed the idea in her budget proposal for the 2026/2027 fiscal year, which starts in July. She appears to be following a similar model Illinois has implemented.
As the SBA provided rationale for its stance, PlayMichigan reached out to Whitmer’s office for comment, but did not immediately hear back.
Tax hike favors unregulated gambling
The SBA sent out a long statement via email, disagreeing vehemently with the governor. She’s eying a 25-cent tax on the first 20 million bets annually, which rises to 50 cents thereafter.
The organization said:
“Governor Whitmer’s tax hikes deliver a competitive advantage to illegal and unregulated operators and penalize Michigan sports fans and gaming enthusiasts.
“Instead of strengthening the legal market, Whitmer’s tax hikes encompass new per-bet taxes and dramatically higher iGaming rates that will raise prices for Michiganders and make it harder for legal operators to compete.
“Let’s be clear: the only people cheering today are the illegal and unregulated operators that don’t seek licenses, don’t follow state rules, operate in the shadows, and aggressively target Michigan consumers without paying a dime in taxes or investing in responsible gaming protections.
“The Whitmer tax hikes reward state regulatory evasion and penalize licensed, regulated operators. We urge state leaders to reject these policies and instead focus on strengthening the legal framework that protects consumers, supports jobs, and keeps illegal and unregulated operators out of Michigan.”
While the SBA says the hike will favor unregulated operators, it could impact the way regulated platforms offer promotions, too.
Illinois sees decline in wagers
Illinois imposed a similar model to customers over the summer. Sports Betting Alliance President Joe Maloney has been following the dip in bets. He told ABC 7 Eyewitness News:
“The state of Illinois is showing three consecutive months of 15% declines in the amount of bets. That’s very, very telling, and it is something that is not happening anywhere else in the country that has online sports wagering.”
Lawmakers have proposed legislation that would repeal the state’s per-bet tax.
The SBA is urging Michigan not to make the same mistake, or else it could also see a dip in wagering activity.
