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      FanDuel Rallies Against Proposed iGaming And Sports Betting Tax Hikes In Michigan

      Even though the tax increases are tiny, FanDuel is hoping to keep them from being approved

      By Erik Gibbs

      Last updated: December 12, 2024

      1 min

      just say no

      FanDuel has taken a proactive stance against proposed gaming tax increases in Michigan. This week, the company sent an email urging its Michigan customers to oppose two bills that aim to raise tax rates on sports betting and online casino operations.

      The proposed legislation, SB 1193 and SB 1194, suggests a modest increase, with the sports betting tax rate increasing by 0.1% and the online casino rate rising by 1%. While these changes are incremental, they could set a precedent for further hikes and intensify legislative focus on sports betting taxation in the coming years.

      Anticipating this possible trend, FanDuel is trying to mobilize its customer base to voice opposition to lawmakers, emphasizing the potential negative impact on the industry’s growth and competitiveness.

      FanDuel’s email campaign directs customers to a form on the Sports Betting Alliance (SBA) website, where they can easily communicate their concerns to legislators. The SBA, a coalition of major operators including FanDuel, BetMGM, DraftKings, and Fanatics, serves as a unified front in advocating for favorable regulatory conditions.

      FanDuel tells the customer in the email’s call-to-action, “Use the link below to tell your state representatives NO to a tax hike on legal sports betting and iGaming. Why does this matter? A new tax on sports betting and casino games will have a MAJOR impact on how you enjoy game day AND your favorite games. Promotional offers and the best odds will be at risk if politicians rush in this surprise tax hike.”

      Expanding government relations

      FanDuel’s opposition to the Michigan tax hikes underscores the importance of its recent moves to strengthen its government relations team. On Wednesday, the company announced the addition of James Hartmann and Louis Trombetta as directors of government relations.

      These appointments come at a critical time as FanDuel seeks to navigate the increasingly complex regulatory landscape of the U.S. sports betting and online gaming market.

      Bipartisan lawmakers call on FTC to investigate FanDuel and DraftKings https://t.co/el8PcIQ0DX

      — The Hill (@thehill) December 7, 2024

      Hartmann and Trombetta will provide FanDuel with extensive experience in policy development and regulatory affairs. This could prove instrumental in helping the company manage its relationships with legislators and policymakers.

      Hartmann specializes in aligning corporate objectives with evolving legislative frameworks. His expertise in negotiating with lawmakers and advocating for equitable policies positions him as a key player in FanDuel’s strategy.

      Trombetta is a former executive director of the Florida Gaming Control Commission. His leadership in implementing policies could prove invaluable as FanDuel continues expanding into new jurisdictions and confronting regulatory challenges.

      The appointments of Hartmann and Trombetta signal FanDuel’s commitment to facing legislative hurdles head-on while looking to foster a collaborative relationship with regulators.

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