A new legislative proposal in Michigan is seeking to legalize informal betting games among friends and coworkers—such as March Madness brackets or Super Bowl squares —by carving out a narrowly defined exception to the state’s gambling laws.
Senate Bill 511, introduced by State Senator Veronica Klinefelt, would amend the Michigan Penal Code to permit small-stakes betting as long as it occurs within the bounds of a “bona fide social relationship” and meets specific criteria.
“Its sole purpose is to legalise what we do every day, what everybody does all the time, bets their best friend $5 on a football game, people do March Madness and Super Bowl squares with their friends, nobody is making any money,” Klinefelt stated during a recent hearing before the Senate Regulatory Affairs Committee.
While the bill received a hearing, no immediate vote was taken. Klinefelt noted she developed the proposal independently, despite similar ideas circulating in the past.
Strict Guidelines for Legal Social Wagers
Under current Michigan law, private party wagers are classified as misdemeanors, punishable by up to one year in jail and a $1,000 fine. SB 511 proposes increasing the fine to $5,000, but more importantly, it would allow certain low-stakes betting contests under the following conditions:
- The wager must be between individuals with a genuine social connection.
- No more than 100 people can participate in a single contest.
- The maximum individual bet is capped at $25.
- The full prize pool must be distributed to participants, with no profit taken.
- The contest organizer must also be a participant and may not benefit except as a winner.
- Bets cannot occur at casinos, bars, restaurants, entertainment venues, or be used to attract business.
While the current language sets the wager limit at $25, some lawmakers have expressed interest in raising that figure to $100.
Support and Concerns from Stakeholders
Senator Michael Webber commented during the committee hearing that he doubts law enforcement is actively pursuing such friendly bets, calling them “fun between friends and coworkers.” However, he warned about the implications of bringing regulation into casual gaming environments0.
Klinefelt acknowledged that while enforcement may be minimal, these activities remain technically illegal under state law and should be addressed. She also stated the bill has attracted bipartisan backing, with support from fellow lawmakers Sue Shink, Jonathan Lindsey, and Joseph Bellino.
Still, not everyone is on board. Some commercial casinos have raised objections, arguing that the bill could violate a 2004 state constitutional amendment requiring voter approval for any expansion of gambling.
In addition, multiple federally recognized tribal nations, including the Nottawaseppi Huron Band of the Potawatomi and the Gun Lake Tribe, have also voiced opposition. Concerns from these groups stem largely from potential competitive impacts and the bill’s interpretation under existing gaming agreements.
Despite these concerns, Klinefelt said she is willing to collaborate on revisions to ensure the bill is “more comfortable” for stakeholders.
As Michigan’s online gambling market continues to grow—with August revenues hitting a record $312.5 million—SB 511 represents an attempt to align legal policy with common social practices in an evolving gambling landscape.
Source:
“Michigan bill wants legal betting for ‘bona fide’ buddies in pools, squares”, igamingbusiness.com, Sep 19, 2025.
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