Michigan Gaming Revenue Hits Record $501M in Tax Benefits for State Education

Michigan Gaming Revenue Hits Record $501M in Tax Benefits for State Education

By Marcus Bennett

January 2, 2025 at 06:45 PM

Michigan's gaming industry generated $501.4 million in state tax revenue in 2024, marking a record-setting year for both commercial and tribal gaming operations. The majority of these funds benefit the Michigan School Aid Fund, supporting K-12 public education.

Detroit casinos: MotorCity, MGM, Greektown

Detroit casinos: MotorCity, MGM, Greektown

Revenue Breakdown:

  • Detroit's three brick-and-mortar casinos: $99.8 million
  • Retail sports betting: $655,000
  • Online gaming (including tribal partnerships): $388.5 million
  • Mobile sports betting: $12.9 million
  • Fantasy sports: $297,000

Michigan now ranks as the fourth-largest commercial gaming state in the U.S., following Nevada, New Jersey, and Pennsylvania. The state's recent growth is largely attributed to its expanding iGaming market.

Key Fund Allocations:

  • First Responder Presumed Coverage Fund: $4 million
  • Agriculture Equine Industry Development Fund: $3.7 million
  • "Don't Regret the Bet" responsible gaming campaign: $3.75 million
  • Compulsive Gambling Prevention Fund: $3 million

Tax Structure:

  • In-person casino revenue: 8.1% state tax (plus 9.9% to Detroit)
  • Sports betting: 8.4% for commercial and tribal online books
  • Commercial online sportsbooks: 9.65%
  • Online gaming (commercial and tribal): 20-28% based on annual revenue

While the revenue benefits public services, health professionals note increased concerns about problem gambling accessibility due to mobile betting options. The state has responded by expanding addiction support services and prevention programs.

MGCB Executive Director Henry Williams emphasizes the agency's commitment to protecting consumers while supporting education and first responders through gaming revenue distribution.

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