Michigan Eyes Tax Increase on Sports Betting - Industry Reacts - video Dailymotion

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00:00I gave the story a click over at LegalSportsReport.com because it said that Michigan wants to increase

00:08taxes in sports betting.

00:10But honestly, I felt like you click baited me here, Pat.

00:131%?

00:14They can't get this passed?

00:15Why does FanDuel or DraftKings, why do they not want this to happen?

00:18Because they think this will set a precedent for the future or something?

00:20This is such a small tax hike if this is the case.

00:23Yeah, I think, I mean, to a larger topic that we've talked about quite a bit is the industry

00:29is worried about tax hikes.

00:31I mean, a lot of states are talking about it.

00:33A few states have done it, like Ohio and Illinois, after seeing New York come out with a 51%

00:38tax rate.

00:39So other states are like, hey, we're missing out.

00:41And now you've got Louisiana talking about potentially hiking it, and now, of course,

00:46Michigan.

00:47And yeah, to your point, FanDuel, BetMGM, a couple, I think DraftKings did as well,

00:51sent out emails asking their customers to write their legislators and say, please don't

00:55raise the tax.

00:56To your point, 1% doesn't seem that big.

01:01However, it could just be a starting point to get the discussion started.

01:05And then at some point, the lawmakers start to hike it even more.

01:08Who knows, it could go up maybe another 10, 15% if the amendments kind of flow in.

01:13So it's something the industry doesn't want to kind of start thinking about.

01:18They just want it to stay status quo.

01:21And so Michigan, my state, will be one that I'll be watching closely this legislative

01:25session around that bill.