Michigan lawmakers consider boosting county-fair funding, tap online gaming tax for harness-racing purses

Representative Ken Koontz, sponsor and presenter, told the Michigan House Committee on Agriculture that three related bills would redirect existing online gaming tax revenue to support county fairs, 4‑H programs and harness racing without raising taxes. “This is a county fair bill,” Koontz said as he opened testimony, adding the proposal would ‘‘reallocate some of the existing non‑tribal internet gaming tax’’ now capped at $3,000,000.

The bills would raise the annual cap on deposits to the Michigan Agricultural Equine Industry Development Fund (often called the Ag Equine Fund) in staged steps — witnesses discussed figures of $9 million, $12 million and $15 million as possible future caps — and Representative Green proposed a separate supplemental appropriation of $2 million from that fund for 2025 purses to support races scheduled for this summer into 2026. “This is a supplemental bill that would take in $2,000,000 from the fund to be able to use to increase the purses,” Representative Green said.

Why it matters: Supporters said the bills would move money already collected through online gaming toward a long‑established industry and county fair system that provides youth programming and local economic activity. Byron Chunk, a longtime fair participant, and Brett Boyd of the harness industry said county fairs are breeding and development venues for young horses and for local agricultural economies. ‘‘There's 81 county fairs in the state of Michigan,’’ Chunk testified, and he told the committee that about ‘‘very, very close to 50,000’’ youth participated in fairs last year.

Industry witnesses and fair officials described economic and programmatic impacts if the funds become available. John Curry of the Michigan Association of Fairs and Exhibitions said funds would help capital investments and operating costs at fairgrounds. Elsie Scramlin of the Oakland County Fair told the committee Michigan’s 81 county fairs had about 4.5 million attendees last year and that fairgrounds are used year‑round for community events and disaster response.

Sources and safeguards: Witnesses and sponsors repeatedly said the bills do not authorize wagering at county fairs. ‘‘There is no gambling at county fairs. There's no wagering,’’ Koontz said, and Brett Boyd described the fund’s revenue sources as the online casino tax, online sports wagering (about $1 million), and advanced deposit wagering (about $1 million). Boyd said the Ag Equine Fund had been capped at $3 million and that the fund balance had grown; he and other witnesses described challenges accessing the excess balance under current budget practice.

Multiple witnesses emphasized animal‑welfare measures in the proposals. Testimony noted requirements for licensed veterinarians on race days, pre‑ and post‑race inspections, and drug testing programs at county fair races. John Curry said his organization hires a licensed veterinarian to drug‑test races at fairs and that drug testing is performed on selected horses.

Scope and limits: Committee discussion distinguished county‑fair exhibition racing (no wagering) from licensed pari‑mutuel commercial tracks. Representative Fox and others asked whether funds would flow to professional tracks; witnesses said the bills in committee are intended chiefly for county fair racing and the Ag Equine Fund, though one witness noted efforts to reopen a licensed pari‑mutuel facility in Hastings that would be separately licensed to accept wagering. Committee members also pressed for fiscal details; sponsors said the change uses existing restricted fund revenue and would not take money from the School Aid Fund. Representative Koontz said the proposal would not reduce school aid, and the House Fiscal Analysis projection cited in the hearing estimated growth in online gaming receipts for the state.

Formal committee actions recorded at the start of the hearing included adoption of the prior meeting minutes without objection and roll‑call approval to adopt H‑1 substitute language for two bills (house bill 43‑46 and house bill 43‑47), each recorded as 8 yeas, 0 nays. The committee then took testimony on house bills 43‑46, 43‑47 and 43‑48; no final floor votes on those bills were recorded in the hearing transcript.

What’s next: Sponsors said additional fiscal detail and amendments would be on the record in later testimony. Representative Green urged use of the fund for immediate purse support this year, while other sponsors outlined legislative steps to change the annual capture percentage and raise the statutory cap in future years.

Local context: Supporters said the measures would benefit 81 county fairs across Michigan, sustain 4‑H and FFA programming, and support ancillary industries such as feed suppliers, veterinarians and farm labor. Opponents were not recorded in the transcript; multiple cards filed in support were read into the record near the end of the hearing. The committee adjourned after reading testimony cards into the record.