The bill amends the 2019 Lawful Internet Gaming Act by updating the tax structure for internet gaming operators in Michigan. It establishes 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 specifies that internet gaming operators that are Indian tribes are subject to different payment requirements. The bill also clarifies that internet gaming operators are exempt from other taxes imposed by the state or local governments, except as outlined in the act, and mandates that any municipal services fee imposed by a city on casino licensees also applies to internet gaming operators holding a casino license in that city.

Furthermore, the bill creates the internet gaming fund within the state treasury, which will receive funds from various sources, including taxes collected from internet gaming. The fund will be administered by the Michigan Gaming Control Board and will cover costs related to regulating internet gaming, as well as allocate funds to various programs, including compulsive gaming prevention and support for first responders. The bill ensures that after covering these costs, remaining funds will be directed to the state school aid fund, thereby supporting education in Michigan.

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
House Concurred Bill: 432.314, 432.316
Senate Concurred Bill: 432.314, 432.316
Public Act: 432.314, 432.316
House Enrolled Bill: 432.314, 432.316