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A bill in the Michigan Senate proposed by Sen. Veronica Klinefelt would amend current gambling laws to allow social betting.
The bill, Michigan’s SB 511, would legalize bets among friends, such as those popular during March Madness, with specific restrictions.
The proposed legislation states: “The bill would amend Chapter XLIV (Gambling) of the Michigan Penal Code to exempt a wager that is incidental to a bona fide social relationship and that meets other conditions from the current prohibition on gambling on the result of a race, contest, or game. It also would increase the fine for violating the prohibitions.”
Rules of the game: What SB 511 allows (and doesn’t)
While SB 511 will create an exception to legalize popular bets among friends during events like the Super Bowl, it includes key restrictions:
- The bet must be part of a legitimate social relationship and not the basis for the relationship.
- Betting is limited to 100 participants.
- The maximum wager is $25.
- Wagers are the only transactions allowed.
- Payouts must include the entire amount wagered; organizer rakes are prohibited.
- The organizer must be a participant in the contest and be eligible for the same prizes as other players.
- Betting cannot occur in a casino, other gambling establishment, bar, entertainment venue, or restuarant.
- Businesses cannot promote the wagering event to attract customers.
For example, under the proposed bill, friends could organize a March Madness bracket challenge. If 10 people enter and each pays a $25 entry fee, the $250 pool of fees must be paid out in full. Payouts could be $150 for first place, $75 for second, and $25 for third. Organizers cannot take a cut of the fees for their time.
However, if strangers join a March Madness pool found on Reddit, it would be illegal under the bill’s current language. Participants must have a social relationship that exists outside the betting event.
The connection between social casinos and SB 511
Social gambling and social casinos, blending competition and connection, are booming, with social casino revenue projected to hit $7.5 billion by 2026.
SB 511 taps this trend, legalizing low-stakes bets among Michigan friends, like Super Bowl squares, mirroring the community vibe of social casino chats. By regulating these friendly wagers, the bill could make Michigan a leader in accessible, social-focused betting, amplifying the national shift toward interactive, casual gaming.
Will Michigan greenlight social betting? The road ahead for SB 511
SB 511 is currently with the Senate Committee on Regulatory Affairs, where it awaits a vote to determine if it will move to another committee or the Senate floor. If it passes the Senate, it will proceed to the Michigan House of Representatives. If approved by the House, Gov. Gretchen Whitmer would decide whether to sign it into law.
The likelihood of SB 511 becoming law remains uncertain. Michigan has recently taken a strict stance against unregulated gaming, cracking down on illegal casinos and sweepstakes.
However, SB 511 regulates small-scale bets among friends that already occur informally. Other states have similar laws allowing social wagers:
- Washington: Super Bowl squares are legal, with a maximum of $1 per square.
- Ohio: Office pools are legal if the organizer does not take a cut.
- Colorado: Office pools are legal if the organizer does not take a cut.
- Connecticut: Office pools are legal if the organizer does not take a cut.
While it’s hard to predict whether the bill will become law, its feasibility will become clearer when the Regulatory Affairs Committee votes in the coming weeks.
