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00:00I gave the story a click over at LegalSportsReport.com because it said that Michigan wants to increase
00:08taxes in sports betting.
00:10But honestly, I felt like you click baited me here, Pat.
00:131%?
00:14They can't get this passed?
00:15Why does FanDuel or DraftKings, why do they not want this to happen?
00:18Because they think this will set a precedent for the future or something?
00:20This is such a small tax hike if this is the case.
00:23Yeah, I think, I mean, to a larger topic that we've talked about quite a bit is the industry
00:29is worried about tax hikes.
00:31I mean, a lot of states are talking about it.
00:33A few states have done it, like Ohio and Illinois, after seeing New York come out with a 51%
00:38tax rate.
00:39So other states are like, hey, we're missing out.
00:41And now you've got Louisiana talking about potentially hiking it, and now, of course,
00:46Michigan.
00:47And yeah, to your point, FanDuel, BetMGM, a couple, I think DraftKings did as well,
00:51sent out emails asking their customers to write their legislators and say, please don't
00:55raise the tax.
00:56To your point, 1% doesn't seem that big.
01:01However, it could just be a starting point to get the discussion started.
01:05And then at some point, the lawmakers start to hike it even more.
01:08Who knows, it could go up maybe another 10, 15% if the amendments kind of flow in.
01:13So it's something the industry doesn't want to kind of start thinking about.
01:18They just want it to stay status quo.
01:21And so Michigan, my state, will be one that I'll be watching closely this legislative
01:25session around that bill.