While the Michigan state House passed legislation Wednesday to permit sports betting and online gambling at state casinos, the bills could still face a gubernatorial veto. 

If legislation makes its way through the channels, Michigan’s 23 Tribal casinos will have the right to operate online gambling sites if they secure state authorization through their compacts.

“We are making great progress on this plan to move sports betting and gaming into a safer, regulated, and modern environment – but we are falling behind other states and we must move forward,” said House Ways and Means Committee Chair Brandt Iden, the lead sponsor on the package. “The longer we delay, the longer we put our citizens at risk, and the longer we miss out on economic benefits and needed revenue for schools and public services.”

Under the plan, an 8.75 percent tax would be collected on sports bets at the state’s 23 Tribal casinos, and 12 percent at the three Detroit casinos (that includes the 3.25 percent tax imposed by the city). Twelve different Tribes own and operate the state’s 23 Indian casinos. Detroit casinos include: Motor City Casino, Greektown Casino and MGM Grand – Detroit. 

For non-sports related online gaming, the tax rate would be calculated by revenue from online gaming and rise in phases: in the first three years, 4 and 19 percent; in the fourth year, between 6 to 21 percent; and after five years, between 8 and 23 percent. 

Past bills have failed to get the greenlight from the governor’s office. Last session, similar legislation made it through the House and Senate but then-Gov. Rick Snyder ultimately vetoed it. 

Rep. Rebekah Warren, D-Ann Arbor, is pessimistic about these bills getting Governor Gretchen Whitmer’s approval. “We still don’t have the bills in a form that will survive our governor’s veto pen,” she said. 

But it’s not because Governor Gretchen Whitmer is opposed to sports betting and online gaming altogether. Rather, she is reportedly concerned about how to protect the school-aid fund and have Tribal harmony.

According to Iden, the proposed bills earmark funds for school-aid, and he says that many Tribes have voiced support for the bills. “My big question is: What does the governor’s office want?” Iden told Sports Handle on Thursday. 

Governor Whitmer Signs Executive Directive to Strengthen Tribal-State Relations

In an unrelated move yesterday, Governor Gretchen Whitmer signed the first executive directive in Michigan history to require training on Tribal-state relations for all state department employees who work on matters that have direct implications for Tribes.

Her directive reaffirms and extends Michigan’s commitment to recognize the sovereignty and right of self-governance of Michigan’s federally-recognized Indian Tribes. Gov. Whitmer signed the order at a summit of Michigan’s Tribal leaders, ordering each state department and agency to adhere to these principles. 

“As Michiganders, we must ensure that our Tribal communities are treated with dignity and respect,” said Governor Whitmer. “It’s important to me that each tribe has a seat at the table in my administration to contribute their perspectives, and I’m committed to working closely with our Tribal leaders to protect the health, safety, and welfare of their communities.” 

Her executive directive also details a process of Tribal consultation designed to ensure meaningful and mutually beneficial communication and collaboration between these Tribes and the departments and agencies on all matters of shared concern. 

Governor Whitmer has shown a deep commitment to ensuring members of Michigan’s federally recognized Tribes have a seat at the table in state government. 

She appointed Wenona Singel, a citizen of Little Traverse Bay Bands, as her advisor on Tribal-state affairs, the first Tribal citizen to hold this position in Michigan history. 

Tribal members that Governor Whitmer has appointed to Michigan state boards and commissions include Chris Swartz on the UP Energy Task Force, General Counsel Whitney Gravelle on the Michigan Women’s Commission, Natural Resources Department Director Evelyn Ravindran on the Committee on Michigan’s Mining Future, and Councilor Emily Proctor on the Census Complete Count Committee.