Gretchen Whitmer is considering an Illinois-style per-bet tax of her own.

- Michigan Gov. Gretchen Whitmer proposed a per-bet sports betting tax comparable to Illinois, charging operators 25 cents for the first 20 million bets and 50 cents for each extra wager.

- The tax is forecasted to raise $38.8 million for the Medicaid Benefits Trust Fund, though Illinois saw a decline in overall bets and added expenses for bettors after embracing a similar policy.

- Whitmer's budget also includes eliminating complimentary bet deductions and raising taxes on higher-earning online casinos, measures expected to generate new revenue but likely face industry opposition.

Whitmer's proposed budget for the state's 2027 fiscal year was revealed Wednesday, and it consists of a per-bet tax for Michigan sports wagering operators.

According to budget files, the new tax would correspond Illinois' sports wagering levy that was executed in 2015. A 25-cent tax would be used to a licensee's first 20 million wagers in a year, and after that 50 cents for every single bet over that level.

Whitmer's budget plan projections that her state's per-bet tax might create $38.8 million for the financial year, which would go to the state's Medicaid Benefits Trust Fund.

"The exact same tax was enacted in Illinois last year," spending plan instruction documents state. "Michigan's sports wagering tax rate currently ranks 28th out of the 30 states that have legalized the activity. Michigan's tax rate stays the least expensive among nearby states."

The proposition would likely raise income for the state, but it might have repercussions for gamblers. In Illinois, the per-bet tax that was generated last year prompted operators to embrace procedures to balance out the included expenses, including transaction fees and greater betting minimums.

Moreover, Illinois sports wagering figures show the number of bets has actually decreased following the execution of the brand-new tax.

One significant industry group, the Sports Betting Alliance, has attributed the falloff to the per-bet levy.

Oh boy. Michigan Gov. Gretchen Whitmer's newest budget plan proposes to pull an Illinois and add a per-bet sports betting tax.

It would be precisely the same as Illinois, too: 25 cents per-bet on first 20M wagers, then 50 cents a bet after that.

h/t @MattCareyGC pic.twitter.com/JqKAXm3mqp

Whitmer's budget plan proposes extra tax changes for online betting in Michigan too. The is now seeking to eliminate the deduction of complimentary bets from the taxable profits of operators, which is predicted to raise another $21.1 million.

"Free play is a reward for gamblers, allowing them to start putting sports wagers at no initial cost," the documents say. "Under the spending plan proposal, sports betting companies would no longer have the ability to subtract those wagers."

Moreover, the budget plan proposal consists of a new "greater minimal tax rate" for online casinos. For an operator that makes more than $185 million in adjusted gross invoices, the tax rate would increase by eight portion points on earnings above that level, to 36%.

"Last year, just 3 of Michigan's web gambling establishments satisfied the limit for the higher tax rate to apply," the documents state. "It is anticipated to produce $135.5 million in brand-new tax earnings in FY27, with the bulk going straight to the Medicaid Benefits Trust Fund in assistance of health and health care."

It seems highly likely that Whitmer's proposed tax hikes will be satisfied with resistance from the betting market. The propositions also have a methods to precede they are unwritten law; it's possible they do not make it into the final budget.