Unfortunately, the State of Michigan never had a provision on the books that allowed a similar deduction, unfairly taxing Michigan patrons on the gross amount of their gambling winnings irrespective of losses. Historically, the IRS has allowed gambling losses to offset gambling winnings so that taxpayers are not paying tax on the money they don’t have. If you hit it big at a Michigan casino (or while playing blackjack from your phone) in 2021, here’s some good news. Michigan gambling taxes are getting clarifications.
