Michigan Senate Committee reviews proposal to authorize social wagering under limits

Michigan lawmakers are considering whether office pools and friendly betting contests should have a defined place in state law, with Senate Bill 511 proposing to carve out an exception for wagers “incidental to a bona fide social relationship” while maintaining restrictions on venues and participant limits.

Introduced by Sen. Veronica Klinefelt, SB 511 would amend the Michigan Penal Code to allow for social wagering contests under specific conditions. The measure covers activities such as March Madness bracket pools and Super Bowl squares that currently fall under restrictions on private-party wagers.

The bill requires that contests involve no more than 100 participants, with a maximum individual wager of $25. Prizes must be awarded entirely to one or more participants, and the organizer must also be a participant with no other benefit except the chance to win. Transactions would not be allowed at casinos, bars, restaurants, or entertainment venues, and businesses would be prohibited from promoting contests to attract customers.

The legislation also proposes changing the penalty for violations of its provisions. Current law classifies private wagers as a misdemeanor, punishable by up to one year in prison and a fine of not more than $1,000. Under SB 511, the maximum fine would rise to $5,000. Lawmakers have also discussed possible amendments, including raising the maximum wager to $100.

During a Senate Committee on Regulatory Affairs hearing, Klinefelt said: “With SB 511, its sole purpose is to legalize what we do every day, what everybody does all the time, bet their best friend $5 on a football game. People do March Madness and Super Bowl squares with their friends; nobody is making any money, nobody is making any profit off of it.”

Klinefelt said she is not the first person to come up with the idea for the bill. However, she said no one brought her the bill to introduce, and she came up with it on her own. She added: “There are individuals on both sides of the aisle who are interested in this [SB 511].”

The bill has support from Sens. Sue Shink, Jonathan Lindsey, and Joseph Bellino. Sen. Michael Webber, however, questioned the necessity of new regulation, stating that agencies are unlikely to enforce restrictions on casual office or neighborhood pools. He said such contests are common among friends and coworkers, but noted he was open to continued discussion.

Casinos in Michigan have raised objections, arguing that the proposal could run counter to a 2004 constitutional amendment requiring voter approval for gambling expansion. Several tribal operators, including the Nottawaseppi Huron Band of the Potawatomi and the Gun Lake Tribe, have also filed opposition. Klinefelt has said she is willing to work with stakeholders to make the bill more acceptable.

The discussion on social wagering comes as Michigan’s gambling sector continues to generate significant revenue. Gov. Gretchen Whitmer signed legislation legalizing online sports betting and iCasino in 2019, with operators going live in 2021. Online gambling revenue in the state reached a record $312.5 million in August.

Michigan is home to 23 tribal casinos and three commercial casinos in Detroit, in addition to its licensed online operators.

SB 511 remains under review by the Senate Committee on Regulatory Affairs and has not yet received a vote.