Michigan directs sports betting revenue to public services and schools

The state board overseeing internet sports betting must pay oversight costs, gambling addiction prevention, and the first responder fund in that order. The first responder payment goes to the Christopher R. Slezak first responder presumed coverage fund under Michigan's workers' compensation law. Lawmakers must approve spending from the fund. After oversight costs, $1 million goes to gambling addiction prevention each year. Next, the first responder fund receives money to cover 50% of its approved claim and administration costs, capped at $7 million each fiscal year. The law took effect September 21, 2026.

The state board overseeing internet sports betting must send tribal service money through the Michigan strategic fund, then send all remaining money to the state school aid fund. Tribal recipients must be in Michigan and federally recognized as eligible for Indian programs and as having powers of self-government. These payments require lawmakers' spending approval and come after oversight, gambling addiction prevention, and first responder fund payments. Tribal money must support essential government services and follow an allocation plan recommended by the Inter-Tribal Council of Michigan. The law took effect September 21, 2026.

Sports betting tax revenue must be divided among cities with operators' casinos, the state internet sports betting fund, and Michigan's horse industry development fund. Each city share goes to the city where the operator's casino is located. The horse industry share goes to the Michigan agriculture equine industry development fund. Cities must use their share for allowed local purposes, including public safety, roads, and tax or fee relief. Any horse industry allocation above $3 million in a fiscal year must go to the state internet sports betting fund. The law took effect September 21, 2026.