Michigan to allow tax deduction for gambling losses
The law will be effective for the 2021 tax year and beyond.
Following the approval of legislation by Gov. Gretchen Whitmer, Michigan will start allowing citizens to claim state income tax deduction for losses incurred while gaming on their federal tax return.
This law, which received approval in late December 2021, will be effective for the 2021 tax year and in the years to come.
According to reports, this initiative will lead to a reduction of state tax revenue by approximately $12m to $17m. This legislation is supported by federal law, which allows gambling losses to be deducted if one can itemize their deductions.
November saw gaming in The Great Lake State yield $19.8m in state taxes and another $7.6m in local taxes. Indeed, Michigan’s online and retail sportsbooks hit $500.5m for the month, growing 0.6% from $497.6m in October. This figure was found after adding in the $26.7m in retail wagering from Detroit-area casinos that they had previously announced.
December has also seen a number of established operators and suppliers launch new operations in the region. Specifically, EveryMatrix and the sports betting company PointsBet; with the former applying for a license in the state and the later releasing its live dealer and online casino products.
President of Product and Technology, Manjit Gombra Singh, at PointsBet noted: “Since the launch of our iGaming platform, we have been working to diversify and expand the casino content we offer to players. Our live gaming options in Michigan offer top-tier choices for our players and will serve as a template as iGaming expands in other jurisdictions in the US and Canada.”
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