Michigan Bill Aims to Decriminalize Bets Among Friends

SB 511 and the Social-Betting Exception

Introduced on Sept. 3, 2025, by Sen. Veronica Klinefelt, Senate Bill 511 (SB 511) creates a narrow exception to the Michigan Penal Code. Today, any private wager is technically a misdemeanor, punishable by up to a $1,000 fine and one year in jail.

SB 511 would raise the maximum fine to $5,000 while at the same time carving out a new category of legal “social wagers.” To qualify, a game must meet a strict set of conditions:

• The wager must be incidental to a genuine social relationship.
• No more than 100 people may participate.
• Individual stakes are capped at $25, though some lawmakers want the cap raised to $100.
• Every dollar wagered must go back to winners as prize money.
• Organizers must also participate, with no extra cut beyond the chance to win like anyone else.
• Games cannot take place in casinos, restaurants, bars, or be promoted by a business looking to draw customers.

Senator’s Rationale

Klinefelt said the purpose of SB 511 is simple: legalize what’s already happening. “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, people do March Madness and Super Bowl squares with their friends, nobody is making any money.”

She added that no one is actively enforcing the current prohibition but argued it makes little sense to leave such common behavior technically illegal.

While the bill enjoys bipartisan support, it has sparked concern from the state’s casino industry and several tribal operators. Critics argue SB 511 could violate a 2004 constitutional amendment that requires voter approval for any expansion of gambling. Tribes in particular have expressed unease that even small carveouts could erode their control over regulated gaming.

The bill has been referred to the Committee on Regulatory Affairs, which held an initial hearing but has not yet scheduled a vote.