House committee advances bills to channel online gaming tax revenue to county fairs, harness racing

A Michigan House committee on county-fair and equine policy matters adopted substitute language for two bills and heard testimony on a third package measure that would direct a greater share of the states online gaming tax to county fairs and the harness-racing industry.

Committee members voted to adopt substitute H-1 language for House Bill 43-46 and for House Bill 43-47, and then took testimony on House Bill 43-48, a $2 million supplemental measure aimed at increasing purses for the 2025 harness-racing schedule.

The bills seek to raise the current cap on allocations from the non-tribal online gaming tax that flow into the Michigan Agricultural Equine Industry Development Fund. Supporters said the measure will provide steady, dedicated revenue for 81 county fairs, youth agricultural programs such as 4-H and the harness-racing supply chain that includes trainers, veterinarians and local feed suppliers.

Representative Jason Koontz, the bill sponsor who opened the hearing, said the proposal "doesn't raise taxes" and instead reallocates existing non-tribal internet gaming tax revenue. He described the legislation as "a shot in the arm for every single county fair in the state of Michigan," saying it would support county fairs, horse racing and 4-H programming.

Byron Chunk, introduced by Koontz as a longtime harness participant, told the committee that county fairs are a major entry point for youth agriculture and that nearly 50,000 young people ages 9 to 18 participated in county fair projects across the state last year. "This bill allows monetary shot in the arm for every single county fair in the state of Michigan," he said.

Brett Boyd, who identified himself as a 30-year advocate for the industry, described multiple revenue streams that currently fund the Ag Equine Fund and said the fund has grown but the department budget process has constrained access to the extra balance. "That initial money into the Ag Equine Fund from the casino tax led to another huge boom of horses," Boyd said, adding the new allocations would support owners, trainers and local businesses that sell feed and equipment.

Representative Matt Green presented House Bill 43-48, a supplemental budget authorization that would allow the department to take $2 million from the Ag Equine Fund for 2025 purses. Green said the money would expand the number of purses and allow races to run later into the year, helping cover travel and operational expenses for horsemen.

Committee members asked several technical and budget questions. Representative Skaggs and others reviewed House Fiscal Agency projections cited during testimony, noting the online gaming tax grew from about $450 million in 2024 to a projected $540 million in 2025 and that the bills would capture a portion of that growth rather than increase the overall tax rate.

Committee witnesses and industry representatives described program and oversight details: the Ag Equine Fund currently receives allocations from online casino tax receipts and sports wagering, and some funds also come from advanced-deposit wagering taxes. Witnesses said the fund had a balance reported in excess of $10 million and that organizers sought access to that balance for the current fiscal year.

John Curry, vice president of the Michigan Association of Fairs and Exhibitions, and Elsie Scramlin, general manager of the Oakland County Fair and a former MAFE president, described how fairs use their grounds year-round for community events and emergency staging and said capital and operating expenses for tracks and facilities have risen without corresponding increases in support. Curry said the bills would help fairs pay for track maintenance, drug testing and year-round upkeep.

A veterinary expert who identified themself during testimony as a professor in Michigan State Universitys animal science department and chair of the Michigan Horse Racing Advisory Commission (testimony submitted under the name recorded in the hearing record) urged passage and described the industrys role in supporting veterinarians, farriers and other agricultural jobs. The witness said injury rates are an industry concern and noted the bills include provisions for on-site veterinary presence and pre- and post-race inspections.

Votes at a glance - Minutes from the previous meeting were adopted without objection. - Representative Wirtz moved to adopt substitute H-1 for House Bill 43-46; the clerk recorded 8 yeas, 0 nays and the motion prevailed. - Representative Wirtz moved to adopt substitute H-1 for House Bill 43-47; the clerk recorded 8 yeas, 0 nays and the motion prevailed.

What the bills would change (as described in committee) - Raise the capped allocation to the Michigan Agricultural Equine Industry Development Fund (testimony referenced stepping the cap up to $9 million, $12 million and $15 million in subsequent years; exact statutory language and final caps were described as varying in the substitute text and were not printed in the hearing record provided). - Provide a recurring minimum payment to each county fair (sponsor testimony first described $5,000 minimum per fair and noted a revised figure of $10,000 had been discussed in updated language). - Authorize a $2 million supplemental transfer for FY2025 to increase purses for the harness-racing schedule (House Bill 43-48).

Committee members and witnesses repeatedly emphasized that the bills do not authorize pari-mutuel wagering or expand gambling at county fairs. Witnesses said no wagering would be allowed at fairs; purses and program funding would come from the restricted Ag Equine Fund fed by online gaming tax receipts.

The hearing record includes questions about the funds balance and restrictions. Witnesses said the fund receives (a) online casino tax revenue, (b) a portion of online sports-wagering receipts, and (c) taxes on advanced-deposit wagering; they said unspent fund balances remain in the restricted fund until appropriated.

Next steps Committee members took testimony and adopted substitute language for two bills; additional fiscal and statutory details were requested and witnesses said updated fiscal notes and language would be provided. No final floor passage occurred during the hearing; bills will move through the regular legislative process.