HB 6127

substitute for
House BILL NO. 6127
A bill to amend 2019 PA 152, entitled
"Lawful internet gaming act,"
by amending sections 14 and 16 (MCL 432.314 and
432.316), section 16 as amended by 2024 PA 142.
the peoplE of the state of michigan enact:
Sec. 14. (1) Except for an internet gaming operator
that is an Indian tribe, an internet gaming operator is subject to a graduated
tax on the adjusted gross receipts received each calendar year by the internet
gaming operator from all internet gaming it conducts under this act as set
forth below:
(a) For adjusted
gross receipts less than $4,000,000.00, a tax of 20%.
(b) For adjusted
gross receipts of $4,000,000.00 or more but less than $8,000,000.00, a tax of
22%.
(c) For adjusted
gross receipts of $8,000,000.00 or more but less than $10,000,000.00, a tax of
24%.
(d) For adjusted
gross receipts of $10,000,000.00 or more but less than $12,000,000.00, a tax of
26%.
(e) For adjusted
gross receipts of $12,000,000.00 or more, a tax of 28%.
(2) An internet
gaming operator that is an Indian tribe is subject to the payment requirements
under section 7(1)(f).
(3) An internet
gaming operator shall pay the tax or payment, as applicable, under subsection
(1) or (2) on a monthly basis. The payment for each monthly accounting period
is due on the tenth day of the following month.
(4) Except as
provided in this act and section 12(17) of the Michigan Gaming Control and
Revenue Act, 1996 IL 1, MCL 432.212, an internet gaming operator is not subject
to any excise tax, license tax, privilege tax, occupation tax, or other tax,
payment, or fee imposed exclusively on an internet gaming operator or internet
gaming operators by this state or any political subdivision of this state,
except as provided in this act. This subsection does not impair the contractual
rights under an existing development agreement between a city and an internet
gaming operator that holds a casino license under the Michigan Gaming Control
and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(5) In addition to
payment of the tax and other fees as provided in this act, and to any payment
required pursuant to an existing development agreement described in subsection
(4), if a city has imposed a municipal services fee equal to 1.25% on a casino
licensee, the city shall charge a 1.25% fee on the adjusted gross receipts of
an internet gaming operator that holds a casino license under the Michigan
Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, whose casino
is in that city.
Sec. 16. (1) The internet gaming fund is
created in the state treasury.
(2) The state
treasurer may receive money or other assets required to be paid into the fund
under this act or from any other source for deposit into the fund. The state
treasurer shall direct the investment of the fund. The state treasurer shall
credit to the fund interest and earnings from fund investments.
(3) The board is
the administrator of the fund for auditing purposes.
(4) Except as
otherwise provided in section 15(2), the board shall expend money from the
fund, on appropriation, for all of the following:
(a) The costs
incurred by the board in regulating and enforcing internet gaming under this
act.
(b) The costs
incurred by the executive director or board in the administration and
enforcement of millionaire party activity under the Traxler-McCauley-Law-Bowman
bingo act, 1972 PA 382, MCL 432.101 to 432.152.
(c) After the
expenditures under subdivisions (a) and (b), each year, $3,000,000.00 to the
compulsive gaming prevention fund created in section 3 of the compulsive gaming
prevention act, 1997 PA 70, MCL 432.253.
(d) After the
expenditures under subdivisions (a), (b), and (c), each fiscal year, $2,000,000.00
to an amount, not to
exceed $7,000,000.00, to the Christopher R. Slezak first responder presumed
coverage fund created in section 405 of the worker's disability compensation
act of 1969, 1969 PA 317, MCL 418.405, to pay 50% of the costs incurred in the
payment of approved claims and the administration of the Christopher R. Slezak first responder presumed
coverage fund created in under section 405 of the
worker's disability compensation act of 1969, 1969 PA 317, MCL 418.405.
(e) After the expenditures under subdivisions (a), (b), (c), and (d),
each year, $1,000,000.00 to the Michigan strategic fund created in section 5 of
the Michigan strategic fund act, 1984 PA 270, MCL 125.2005, for distribution to
federally recognized tribal governments in Michigan for essential government
services. The funds must be distributed according to an allocation plan
recommended by the Inter-Tribal Council of Michigan.
(f) (e) All
money remaining after expenditures under subdivisions (a), (b), (c), and (d), and (e)
to be deposited into the state school aid fund established under section 11 of
article IX of the state constitution of 1963.
(5) As used in this
section, "executive director" means that term as defined in section 2
of the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.102.