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HB 6126

Gaming: other; expenditures under the internet sports betting fund; modify. Amends secs. 15 & 16 of 2019 PA 149 (MCL 432.415 & 432.416)

2025-2026 Regular Session Introduced by Jason Morgan

Creates the Internet Sports Betting Fund and directs 65% of tax revenue to it, plus 30% to host cities and 5% to a horse-racing fund (or to the Internet fund if over cap) for speci

transmitted
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WeVote Research Nonpartisan
Bill Summary · HB 6126

Summary of Bill: HB 6126 (2025-2026) – Gaming: other; expenditures under the internet sports betting fund; modify

Purpose and intent

  • The bill modifies how the tax revenue from internet sports betting is allocated and establishes a dedicated Internet Sports Betting Fund to govern its use.
  • It preserves and reconfigures portions of existing allocations from sports betting taxes, directing funds to specific programs, funds, and the state treasury.

Key provisions and changes

1) Tax allocation (Sec. 15)
- Distribution of tax revenue from section 14(1) is clarified and set to be allocated as follows:
- 30% to the city hosting the operator’s casino for targeted local initiatives (see below).
- 65% to the state to be deposited into the Internet Sports Betting Fund.
- 5% to the Michigan Agriculture Equine Industry Development Fund (per the horse racing law of 1995). If this 5% exceeds $3,000,000 in a fiscal year, the excess over $3,000,000 must be deposited into the Internet Sports Betting Fund (Sec. 15(1)(c)).

2) Internet Sports Betting Fund (Sec. 16)
- Creation of the Internet Sports Betting Fund in the state treasury.
- The State Treasurer can receive money/assets for deposit into the fund from the act or other sources; funds are to be invested, with interest/earnings credited to the fund.
- The Board administers the fund for auditing purposes.

3) Expenditures from the Internet Sports Betting Fund (Sec. 16(4))
The Board is authorized, on appropriation, to spend the fund for:
- (a) The Board’s costs of regulating and enforcing internet sports betting.
- (b) After (a), $1,000,000 annually to the Compulsive Gaming Prevention Fund (per the compulsive gaming prevention act).
- (c) After (a) and (b), $2,000,000 annually to the Christopher R. Slezak First Responder Presumed Coverage Fund (to pay 50% of approved claims and administration costs).
- (d) After (a), (b), and (c), $1,000,000 annually to the Michigan Strategic Fund for distribution to federally recognized tribal governments in Michigan for essential government services; distributions must follow an allocation plan recommended by the Inter-Tribal Council of Michigan.
- (e) After (a)–(d), any remaining funds must be deposited into the state school aid fund.

4) Definitions and governance
- The term “federally recognized tribal government” is defined as per federal recognition standards (eligibility for federal programs/services due to Indian status and self-government).

Who is affected

  • Local governments: Cities hosting the sports betting casinos receive 30% of the tax revenue for local initiatives (e.g., street patrols, neighborhood development, public safety, anti-gang programs, quality-of-life improvements, tax relief, capital improvements, and roadwork).
  • State government: 65% of tax revenue flows into the Internet Sports Betting Fund to be allocated for specified programs and reserves.
  • Michigan Agriculture Equine Industry Development Fund: 5% allocation, subject to a cap (excess over $3 million in a fiscal year goes to the Internet Sports Betting Fund).
  • Funds benefiting specific programs and groups:
    • Compulsive gaming prevention
    • Christopher R. Slezak First Responder Presumed Coverage Fund
    • Michigan Strategic Fund for tribal government support
    • State school aid fund (remaining balance)

Timeline and procedural aspects

  • Effective and operative details are tied to the enactment and appropriation processes; specifics on effective dates are not provided in the text, but the bill was introduced and referred to the Appropriations Committee on June 24, 2026.
  • Revenue allocations flow annually with the fund’s administration and ongoing appropriations (e.g., annual dollar amounts to designated programs).
  • Tribal distributions follow an allocation plan recommended by the Inter-Tribal Council of Michigan.

Notable considerations

  • The bill codifies a dedicated fund administration pathway for internet sports betting revenue, distinct from general funds, with explicit annual disbursement ceilings and targeted beneficiaries.
  • It reinforces local and state-level investments in safety, public services, and social supports, while preserving school aid funding as the residual destination for funds.
  • It creates a mechanism to channel a portion of horse racing-derived funds into the internet sports betting fund if the horse racing-related allocation exceeds a threshold.

If you’d like, I can provide a plain-language plain-English summary of each funded program line item or compare these provisions to current law to highlight changes.

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

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