Key Moments:
- Senate Bill 511 aims to make informal social wagering contests legal among Michigan residents
- The proposed legislation caps wagers at $25 per person and 100 participants per contest
- Michigan casinos and federally recognized tribes have expressed concerns about constitutional and tribal gaming implications
Understanding Social Wagering
Senate Bill 511, introduced by Michigan Senator Veronica Klinefelt, seeks to legalize casual betting activities between individuals within genuine social relationships. Known as social wagering, this practice is distinct from commercial gambling and typically involves friends or acquaintances betting small sums on events such as sports games. Unlike casinos or sportsbooks, participants are not seeking profit but instead participate for recreational purposes, such as sports squares or tournament pools at social gatherings.
BFF bet legalization: A Michigan state senator introduced a bill earlier this month that aims to ensure that wagers of $25 or less between "bona fide" buds do not result in jail time or fines. pic.twitter.com/VJTLhxAXqJ
— Geoff Zochodne (@GeoffZochodne) September 18, 2025
Proposed Rules for Social Betting
The bill specifically permits popular informal contests, such as March Madness pools and Super Bowl squares, which are currently not allowed under Michigan law. Key rules proposed in SB 511 include:
| Provision | Details |
|---|---|
| Maximum Wager | $25 per individual wager |
| Participant Limit | 100 people per contest |
| Prizes | Only the amount wagered is pooled and awarded |
There are ongoing discussions among lawmakers about potentially increasing the maximum wager to $100. Some express concerns that loosening these limits may blur the line between social and commercial gambling. Adjustments may also seek to address how digital payment platforms and online pools could fit within the proposed law.
Restrictions and Penalties
Senate Bill 511 restricts social wagering from taking place at commercial gambling establishments such as casinos, sportsbooks, or other venues like bars and restaurants. Businesses are not allowed to organize or promote these contests. Anyone who holds or participates in unauthorized contests may face penalties ranging from $1,000 to $5,000, mirroring existing gaming regulation fines but applied specifically to this new category.
Support, Concerns, and Legal Landscape
Senator Klinefelt has stated, “With SB 511, its sole purpose is to legalise what we do every day, what everybody does all the time, bet their best friend $5 on a football game. People do March Madness and Super Bowl squares with their friends; nobody is making any money, nobody is making any profit off of it.” The initiative has found bipartisan support, with Senators Sue Shink, Jonathan Lindsey, and Joseph Bellino among its backers. Many residents view legal reform as aligned with common social practices.
Opposition comes from Michigan’s commercial casinos and federally recognized tribes, including the Nottawaseppi Huron Band of the Potawatomi and the Gun Lake Tribe, who are concerned about potential conflicts with constitutional definitions of gambling and impacts on tribal gaming rights. The debate centers on whether these social contests fit within the state’s legal framework for gambling.
Looking Ahead: Next Steps for SB 511
The bill, currently under review by the Committee on Regulatory Affairs, may undergo amendments as lawmakers debate its provisions. SB 511 seeks to establish transparent rules for social betting, distancing itself from unregulated commercial activity and outlining legal boundaries that encourage responsible participation in local events. Michigan’s unique environment, comprising both commercial and tribal gaming, adds complexity to the legislative process as lawmakers consider how to balance interests and maintain compliance with broader legal statutes.
- Author
Daniel Williams
