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Committee hears plan to phase online‑gaming revenue into Equine Development Fund for county fairs

October 31, 2025 | 2025 House Legislature MI, Michigan


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Committee hears plan to phase online‑gaming revenue into Equine Development Fund for county fairs
Representative Koontz told the House Rules Committee that bills under consideration would take a portion of the projected increase in non‑tribal online gaming revenue and direct that money into an Equine Development Fund to support county fairs and harness racing.

"What we're doing here is we're taking some of the increase from the non tribal online gaming, and we're gonna direct this into county fairs. So there's no gambling at the county fairs. There's no wagering," Representative Koontz said, adding the proposal was structured so the changes would not reduce school aid funding.

Koontz displayed Michigan Gaming Control Board figures and described a phased increase that sponsors said would grow the equine fund up to $15,000,000 over a multi‑year period. The sponsor told the committee the maximum amount that could be taken over four years is $15,000,000 and that next year an additional $3,000,000 would be available; supporters said the phase‑in was intended to allow time for purses, breeding and related economic activity to respond.

Richard Shunk, introduced by the sponsor as a horseman and county fair enthusiast, told the committee the money would provide an immediate "shot in the arm" for purses, breeders' awards, veterinarians and other local suppliers. "The great thing about it is just like representative Coaches said, this is being accomplished with no additional gaming whatsoever," Shunk testified, and said neighboring states’ expansion of gaming had driven some horsemen and operations out of Michigan.

Kim Pluta of the Michigan Harness Horsemen's Association described the proposal as a boon for multigenerational horse families, farms and county fairs that “have no money” and are “struggling” under inflation and rising costs for insurance and maintenance.

The sponsor described distribution mechanics: funds would be placed in the Equine Development Fund, the sponsor said distribution percentages would be set through the Department of Agriculture and Rural Development (MDARD) rather than by annual appropriation, and some funding would be earmarked for purses at county fairs. The sponsor stated the program would benefit all 83 county fairs in Michigan with additional funds for fairs that run harness racing; a witness estimated the number of fairs still running harness races at roughly 22. The sponsor also said the program would be limited to Michigan residents.

Committee members asked technical questions about the source of revenue (the sponsor characterized it as growth in non‑tribal online gaming, i.e., the three corporate online operators) and about whether directing growth could affect existing hold‑harmless arrangements (a member asked whether diverting growth would impact Detroit’s hold‑harmless provision tied to internet gaming; the transcript records the question but no detailed resolution in committee testimony).

No committee vote on the equine funding bills is recorded in the hearing transcript; the record shows testimony in support from industry witnesses and ongoing discussions with MDARD about distribution rules.

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Scribe from Workplace AI
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