A Friendly Bet: Michigan Lawmakers Introduce Social Betting Bill

Senator Veronica Klinefelt recently proposed SB 511 to the Michigan Senate. The bill would amend the current state laws to allow social betting between friends with some restrictions on operation. Check out our article to learn more about the bill, the limits, and the bill’s current chances of approval among senators.

SB 511

If approved, SB 511 will legalize social bets among friends. For example, residents and their close friends could bet against each other on who wins the Super Bowl. However, there are restrictions, such as wagers being the only form of transaction allowed. Some of the other restrictions include:

• Max wager limit is $25
• Max limit of 100 participants
• The organizer must be a participant and eligible for the same prize
• The event can’t be promoted to attract customers

Additionally, there are restrictions on the location, as bets can’t occur in a casino, restaurant, bar, or other betting establishments. Any participants also need to have a legitimate social relationship, so random strangers can’t just join in. Finally, any payouts must be paid out in full, and the organizer can’t profit from the bet.

Support and Opposition

The bill has been referred to the Committee on Regulatory Affairs, awaiting further voting. Senators Sue Shink, Jonathan Lindsey, and Joseph Bellino have supported the bill, so there’s a decent chance it will proceed. Aside from bipartisan support in the Senate, many residents approve of the bill as social betting is common.

With SB 511, its sole purpose is to legalize what we do every day, what everybody does all the time, bets their best friend $5 on a football game.

Senator Veronica Klinefelt

Despite the support, some parties have expressed concerns regarding the bill. Commercial casinos are concerned that this bill conflicts with constitutional gambling laws and wonder if social betting can be defined as gambling. Meanwhile, some tribes like the Nottawaseppi Huron Band of the Potawatomi and the Gun Lake Tribe believe it could infringe on tribal rights.

Michigan Cracks Down on Social Casinos

While Michigan is considering new legislation, it also continues its crusade against illegal operators. It shut down 13 offshore sites in April, 19 in July, 15 in August and another twelve in September. The Michigan Gaming Control Board has a strict vetting process for any operator that wishes to enter the state’s market. That’s why it believes any illegal operators undermine those efforts.

These unlawful operators try to present themselves as legitimate entertainment options, but they offer zero player protections, no accountability, and a real risk to consumers.

Henry Williams, MGCB Executive Director

Aside from shutting down unlicensed casinos, the MGCB also works to educate citizens on recognizing illegal casinos through the “Play It Smart, Michigan” campaign. It’s even set up a phone and email, which citizens can use to report unlawful gambling activity. That’s why this bill is likely another measure to curb unregulated social gambling.

History of Gambling in Michigan

While Michigan is strict in its enforcement against unregulated casinos, it also seeks to improve the legal gambling market. Parimutuel betting was the first to be legalized in 1933, while a state lottery was established in 1972. However, it would take until 1996 before the MGCB was founded. Here’s a list of some key events:

• 1993: Parimutuel betting was legalized through the Racing Act 1933.
• 1972: Voters approve the establishment of a state lottery and the state legalizes charity gambling.
• 1984: The first tribal casino, Kings Club Casino, opens.
• November 1996: Citizens approve constructing three commercial casinos in Detroit and establishing the MGCB.
• 2019: The state legalizes online gambling, such as casino games and sports betting.
• 2021: Michigan launches online gambling, including online casinos, poker sites and sportsbooks.

While it took a long time for online gambling to become legal, Michigan has worked hard to support the industry. In 2024, the state approved a budget plan that was used to invest in gambling in 2025. That included more staff for the MGCB, more budget for the regulator’s “Don’t Regret The Bet” campaign, and more funds for gambling addiction programs.

Conclusion

If the bill passes the Committee on Regulatory Affairs, it will have to go through the House of Representatives and be signed into law by Governor Gretchen Whitmer. While Michigan aims to curb illegal gambling, it also supports the regulated market, so we’ll keep you updated on the bill’s future.