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

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

- The tax is predicted to raise $38.8 million for the Medicaid Benefits Trust Fund, though Illinois saw a decrease in total bets and included costs for bettors after adopting a similar policy.

- Whitmer's spending plan also consists of eliminating free bet reductions and raising taxes on higher-earning online casinos, steps anticipated to create brand-new income but likely face industry opposition.

Whitmer's proposed budget plan for the state's 2027 was unveiled Wednesday, and it includes a per-bet tax for Michigan sports betting operators.

According to budget plan documents, the brand-new tax would correspond Illinois' sports betting levy that was carried out in 2015. A 25-cent tax would be used to a licensee's very first 20 million wagers in a year, and after that 50 cents for every bet over that level.

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

"The same tax was enacted in Illinois last year," budget plan instruction documents say. "Michigan's sports wagering tax rate currently ranks 28th out of the 30 states that have actually legalized the activity. Michigan's tax rate remains the most affordable among neighboring states."

The proposal would likely raise revenue for the state, however it may have consequences for wagerers. In Illinois, the per-bet tax that was brought in last year prompted operators to embrace steps to balance out the added costs, including deal fees and higher wagering minimums.

Moreover, Illinois sports betting figures reveal the variety of bets has decreased following the application of the new tax.

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

Oh boy. Michigan Gov. Gretchen Whitmer's most current spending plan proposes to pull an Illinois and include a per-bet sports wagering tax.

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

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

Whitmer's budget proposes additional tax modifications for online betting in Michigan too. The guv is now seeking to eliminate the deduction of free bets from the taxable revenue of operators, which is forecasted to raise another $21.1 million.

"Free play is an incentive for gamblers, permitting them to begin positioning sports wagers at no preliminary cost," the documents state. "Under the budget plan proposition, sports betting companies would no longer be able to deduct those wagers."

Moreover, the budget plan proposition includes a new "greater limited tax rate" for online casinos. For an operator that makes more than $185 million in adjusted gross receipts, the tax rate would increase by 8 portion points on profits above that level, to 36%.

"In 2015, only three of Michigan's internet casinos met the threshold for the greater tax rate to apply," the papers state. "It is forecast to produce $135.5 million in new tax revenue in FY27, with the bulk going directly to the Medicaid Benefits Trust Fund in assistance of health and health care."

It appears likely that Whitmer's proposed tax walkings will be consulted with resistance from the betting industry. The proposals also have a methods to go before they are unwritten law; it's possible they don't make it into the final spending plan.