The bill amends the Lawful Internet Gaming Act by updating the tax structure for internet gaming operators, specifically those that are not Indian tribes. It introduces a graduated tax rate based on adjusted gross receipts, with rates ranging from 20% for receipts under $4 million to 28% for receipts over $12 million. Additionally, it stipulates that internet gaming operators must pay this tax monthly and clarifies that they are not subject to other state or local taxes, except as specified in the act. Furthermore, if a city imposes a municipal services fee on casino licensees, the same fee will apply to internet gaming operators holding a casino license in that city.

The bill also establishes the internet gaming fund within the state treasury, which will receive money from various sources, including taxes collected under the act. The fund will be used for regulatory costs, compulsive gaming prevention, and support for first responders through the Christopher R. Slezak first responder presumed coverage fund, with a cap of $7 million allocated annually for this purpose. Additionally, it allocates $1 million each year to the Michigan strategic fund for distribution to tribal governments for essential services. Any remaining funds after these expenditures will be deposited into the state school aid fund.

Statutes affected:
Substitute (H-1): 432.314, 432.316
House Introduced Bill: 432.314, 432.316
As Passed by the House: 432.314, 432.316