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Amended Michigan betting bill passes second House committee


The sports betting bill filed by Representative Brandt Iden has moved closer to passing the Michigan House, after it was passed by the chamber’s Ways and Means Committee by a vote of 10-1. 

House Bill 4916, the Lawful Sports Betting Act, has been amended to increase the tax rate to 8.75% of gross receipts, up from the original 8.0%. 

It also expands on data usage, after the bill previously stated that sports governing bodies could ask the Division of Sports Betting – established through the bill – to have operators use official league data to settle tier 2 (in-play) bets. 

The original draft only stated that operators could challenge this if they were able to prove that the leagues were unable to provide a data feed on commercially reasonable terms. 

Now, however, it expands on what this actually means. Michigan authorities must examine whether a league is offering their data via more than one provider, and the commercial terms they are demanding, based on pricing in other jurisdictions. It must also look at the quality and depth of the data feed on offer. 

Provided all these criteria are met, the Division of Sports Betting will uphold the request. If they are not, operators would be able to use any available source. 

Should an operator challenge whether data is being offered on commercially reasonable terms, it would also be able to use any available data feed as an interim measure. 

Having already passed the Michigan House Committee on Regulatory Reform before heading to Ways and Means, HB4916 now goes to a full House vote.