Michigan Governor Gretchen Whitmer has targeted online gambling operators this week in a bid help fund the state’s Medicaid expenses via increased taxation.
In her budget proposal for the 2027 fiscal year, both online casinos and sportsbooks would face additional taxes to generate income for the Medicaid Benefits Trust Fund as the state braces itself for potential health care funding cuts.
Online casinos would face a new internet tax rate, expected to generate an additional US$135.5 million in taxes, while sportsbooks would face a per-wager tax, expected to bring in US$38.8 million.
Major operators, including DraftKings, FanDuel, and BetMGM, which hold significant market share in Michigan, would face higher taxes under the plan.
