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HB 6127

Gaming: other; expenditures in the internet gaming fund; modify. Amends secs. 14 & 16 of 2019 PA 152 (MCL 432.314 & 432.316).

2025-2026 Regular Session Introduced by Jason Morgan

Michigan HB 6127 imposes a graduated monthly tax on non-tribal internet gaming operators, with tribal operators exempt, and directs IGF funds to health, tribal services, first resp

transmitted
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WeVote Research Nonpartisan
Bill Summary · HB 6127

Overview

House Bill 6127 (2025-2026, Michigan) amends the Lawful Internet Gaming Act (2019 PA 152) to modify tax treatment for internet gaming operators and to adjust allocations from the Internet Gaming Fund (IGF). The bill distinguishes between tribal and non-tribal operators, establishes a graduated tax schedule based on annual adjusted gross receipts (AGR), and outlines mandatory monthly payments. It also reorganizes how IGF revenues are expended, detailing prioritized uses and residual transfers to the state school aid fund.

Purpose and intent

  • Update the fiscal structure governing internet gaming in Michigan, particularly the tax burdens on operators and the use of revenues generated by internet gaming.
  • Align revenue flows with public purposes (regulatory costs, public safety and health programs related to gaming, tribal support, and education funding).

Key provisions and changes

Taxation of internet gaming operators (Sec. 14)

  • Exemption: Indian tribes operating internet gaming are exempt from the non-tribal tax schedule and will follow payment requirements under section 7(1)(f) (per existing tribal arrangements).
  • Graduated tax for non-tribal operators (monthly basis):
    • AGR < $4,000,000: 20% tax
    • $4,000,000 ≤ AGR < $8,000,000: 22%
    • $8,000,000 ≤ AGR < $10,000,000: 24%
    • $10,000,000 ≤ AGR < $12,000,000: 26%
    • AGR ≥ $12,000,000: 28%
  • Payment timing: Taxes or payments are due monthly on the 10th day of the following month.
  • Additional municipal services fee: If a city imposes a 1.25% municipal services fee on casino licensees, the bill would require a 1.25% fee on the AGR of internet gaming operators with a casino license in that city, effectively maintaining parity with the local fee structure.

Internet Gaming Fund (IGF) administration and expenditures (Sec. 16)

  • Creation and management: The IGF is created in the state treasury; the state treasurer administers investments and credits earnings to the fund. The board serves as the fund administrator for auditing purposes.
  • Expenditures (subject to appropriation):
    • (a) Regulating and enforcing internet gaming under the act.
    • (b) Administration and enforcement activities related to the Traxler-McCauley-Law-Bowman bingo act (Millionaire Party activity).
    • (c) After (a) and (b): $3,000,000 annually to the compulsive gaming prevention fund (per the Compulsive Gaming Prevention Act).
    • (d) After (a), (b), and (c): $2,000,000 annually to the Christopher R. Slezak first responder presumed coverage fund (to offset 50% of approved claim costs and administration for that fund).
    • (e) After (a)–(d): $1,000,000 annually to the Michigan Strategic Fund for distribution to federally recognized tribal governments in Michigan for essential government services; allocation to follow a plan recommended by the Inter-Tribal Council of Michigan.
    • (f) All remaining funds after (a)–(e) are deposited into the state school aid fund (Article IX, Sec. 11, of the Michigan Constitution).
  • Executive director: The term refers to the executive director as defined in the bingo act, ensuring consistency in governance.

Who is affected

  • Non-tribal internet gaming operators: Subject to a graduated monthly tax on AGR.
  • Tribal internet gaming operators: Subject to existing tribal payment requirements rather than the standard tax schedule.
  • Cities with casino licensees: Potentially affected by the 1.25% municipal services fee alignment if such fees exist locally.
  • Michigan residents and public services: Benefits from redirected IGF funds to compulsive gaming prevention, first responder coverage, tribal essential services, and ultimately the state school aid fund.
  • Regulatory and enforcement bodies: Budgetary implications due to explicit IGF expenditure priorities.

Procedural and timeline notes

  • Effective action begins upon statute modification; the bill was introduced and referred to Appropriations on June 24, 2026.
  • Monthly tax payments are due on the 10th of the month following each accounting period, aligning with typical corporate tax remittance schedules.

Potential impacts and considerations

  • Revenue predictability: The graduated tax could shift with AGR fluctuations; higher volume operators would contribute a larger share (max 28% at AGR ≥ $12M).
  • Public health and safety funding: Explicit dedicated funds for compulsive gaming prevention and first responder coverage, potentially strengthening services tied to gaming activities.
  • Tribal funding: A defined channel for essential government services to federally recognized tribes, subject to an allocation plan.
  • Education funding: Residual IGF revenues flow to the state school aid fund, reinforcing school financing.
  • Intergovernmental dynamics: The 1.25% municipal services fee provision could affect fee structures and compensation in municipalities hosting casino operations.

Compiled from official sources — confirm details with the bill’s official record.

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