Bill Summary – FastDemocracy

Legislative Analysis
                                                                           Phone: (517) 373-8080
COMPULSIVE GAMING PREVENTION FUND
                                                                           http://www.house.mi.gov/hfa
Senate Bills 926, 931, 933, and 934 as passed by the House                 Analysis available at
Sponsor: Sen. Sarah Anthony                                                http://www.legislature.mi.gov
Senate Committee: Appropriations [Discharged]
House Committee: Appropriations
Complete to 9-25-24
SUMMARY:
        Senate Bills 926, 933, and 934 would increase, from a total of $2.0 million to a total of $6.0
        million, the annual deposits into the Compulsive Gaming Prevention Fund from various lottery
        and gaming revenues. Senate Bill 931 would amend the Compulsive Gaming Prevention Act
        to account for the increased deposits into the Compulsive Gaming Prevention Fund.
        Senate Bill 926 would amend the McCauley-Traxler-Law-Bowman-McNeely Lottery Act to
        increase the deposit from the State Lottery Fund to the Compulsive Gaming Prevention Fund
        from $1.0 million to $2.0 million.
        MCL 432.41
        Senate Bill 931 would amend the Compulsive Gaming Prevention Act to do all of the
        following:
            • Account for the increased deposit from the State Lottery Fund.
            • Add references to the deposits from the Internet Sports Betting Fund and Internet
               Gaming Fund into the Compulsive Gaming Prevention Fund.
            • Fix an incorrect reference to the amount now required to be deposited from the
               Michigan Agriculture Equine Industry Development Fund into the Compulsive
               Gaming Prevention Fund.
            • Change the amount distributed to the Domestic and Sexual Violence Prevention and
               Treatment Board from $1,040,000 to $1,040,500.
            • Allow the state treasurer to deposit any other resources required to be paid into the
               Compulsive Gaming Prevention Fund.
        MCL 432.253
        Senate Bill 933 would amend the Lawful Sports Betting Act to increase the deposit from the
        Internet Sports Betting Fund to the Compulsive Gaming Prevention Fund from $500,000 to
        $1.0 million.
        MCL 432.416
        Senate Bill 934 would amend the Lawful Internet Gaming Act to increase the deposit from the
        Internet Gaming Fund to the Compulsive Gaming Prevention Fund from $500,000 to $3.0
        million.
     MCL 432.316
FISCAL IMPACT:
House Fiscal Agency                                                                          Page 1 of 2
        Senate Bills 926, 931, 933, and 934 would increase state restricted fund deposits into the
        Compulsive Gaming Prevention Fund from lottery and internet gaming revenues from a total
        of $2.0 million to $6.0 million. The additional $4.0 million would allow the Department of
        Health and Human Services (DHHS) to add additional staff; support the problem gambling
        helpline and media outreach efforts; and provide additional prevention programing and
        services, including programming and services for youth. The additional $4.0 million has
        already been appropriated in the FY 2024-25 DHHS budget.
        The $4.0 million increase to the Compulsive Gaming Prevention Fund would reduce revenues
        to the School Aid Fund (SAF) by a corresponding amount. Net lottery revenues are deposited
        in the SAF and totaled $1.35 billion in FY 2022-23 (the last full year available). Below is a
        five-year history, and the Consensus Revenue Estimating Conference (CREC) estimates, of
        lottery revenue disbursed to the SAF:
                FY 2018-19:   $1.07 billion
                FY 2019-20:   $1.18 billion
                FY 2020-21:   $1.43 billion
                FY 2021-22:   $1.26 billion
                FY 2022-23:   $1.35 billion
                FY 2023-24:   $1.27 billion CREC estimate
                FY 2024-25:   $1.27 billion CREC estimate
        Since its inception in 2021, revenues from internet sports betting have grown from $4.4 million
        in FY 2020-21 to $16.1 million in FY 2022-23 (the last full year of available data).
        Since its inception in 2021, revenues from internet gaming (non-sports) have grown from
        $139.0 million in FY 2020-21 to $338.7 million in FY 2022-23 (the last full year of available
        data).
        CREC does not parse out internet sports betting and internet gaming revenues, but CREC
        estimates combined revenues of $378.4 million for FY 2023-24 and $396.7 million for FY
        2024-25.
                                                               Fiscal Analyst: Kevin Koorstra
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                              SBs 926, 931, 933, and 934   Page 2 of 2
Statutes affected: 
Senate Introduced Bill: 432.416
As Passed by the Senate: 432.416
As Passed by the House: 432.416
Public Act: 432.416
Senate Enrolled Bill: 432.416