Michigan Gov. Earmarks Money for Illegal Sports Betting Battle

The budget proposals come as Michigan and other states have, at the behest of the legal gambling industry, cracked down on what they view as unauthorized or illegal wagering.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne • Senior News Analyst
Feb 8, 2024 • 12:34 ET • 2 min read
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Michigan is putting a bit of money where its mouth is when it comes to combating illegal sports betting. 

Gov. Gretchen Whitmer dropped her budget recommendation for Michigan’s 2025 fiscal year earlier this week and included was $1.9 million for “Internet Gaming and Sports Betting Regulation,” the document states.

“The growth of online gaming and sports betting in Michigan has increased the demand for gaming regulations and licensing operations, and these funds will expand the agency’s regulatory capacity and enhance protections against illegal activity,” the executive budget says. 

Whitmer’s fiscal plan also includes a $4-million increase for the state’s Compulsive Gaming Prevention Fund and programs associated with that fund. 

“Increased allocations of proceeds from internet gaming, sports betting and lottery funds will enhance the 24/7 Gambling Disorder Helpline and existing treatment options to assist those suffering with gambling addiction and related problems,” the budget states. 

The budget proposals come as Michigan and other states have, at the behest of the legal gambling industry, cracked down on what they view as unauthorized or illegal wagering. 

In Michigan, that included sending cease-and-desist letters last month to three online gambling companies that regulators deemed were offering their products in the state without the license they needed to do so. 

The Michigan Gaming Control Board also proposed and is enforcing tougher rules for fantasy sports that prompted the shutdown of pick’em contests versus the house in the state. 

Thanks for that

Michigan Gaming Control Board executive director Henry Williams has welcomed the governor’s funding proposals.

“As iGaming continues to grow in popularity, enhanced regulatory oversight becomes indispensable in protecting vulnerable Michigan citizens, preventing money laundering, and mitigating the risks of fraudulent practices,” Williams said in a recent press release. “The earmarked funds are essential investments in building a stronger, socially responsible gambling industry.”

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff’s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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