The Michigan Gaming Control Board (MGCB) reports that 2024 was a record-setting year for the state’s commercial and tribal gaming industries.
The MGCB announced that Michigan’s three brick-and-mortar casinos in Detroit, along with retail and online sports betting, iGaming, and fantasy sports, contributed more than half a billion dollars to the state. The regulator collected $501.4 million, primarily benefiting the Michigan School Aid Fund, which supports K-12 public education.
Key Contributors
- MGM Grand Detroit, MotorCity, and Hollywood Casino at Greektown: These three casinos accounted for $99.8 million in state gaming tax receipts. Retail sports betting at these casinos added about $655,000.
- Online Gaming: Including revenue from tribal casinos with iGaming partnerships, generated almost $388.5 million in state taxes.
- Mobile Sports Betting: Contributed $12.9 million to the Lansing capital.
- Fantasy Sports Fees: Added $297,000 in taxes.
Growth and Impact
Michigan is now the fourth-richest commercial gaming state in the country, behind Nevada, New Jersey, and Pennsylvania. The state’s gaming growth is largely due to its legal iGaming market, which has gained significant traction among the public.
Henry Williams, MGCB Executive Director, stated, > “As we look back on another successful year, I am proud of the significant impact the Michigan Gaming Control Board continues to have on our state and its residents. From supporting education and first responders to tackling illegal gambling, the MGCB remains steadfast in its mission to protect consumers and enhance the public good.”
Concerns and Challenges
While the expansion of online slot machines, table games, and sports betting has been lucrative, it has also raised concerns. Mental health and addiction counselors note that the accessibility of gambling via smartphones and computers has led to increased rates of problem gambling and associated societal issues like bankruptcies, broken families, depression, and substance abuse.
Alia Lucas, a gambling disorder specialist with the Michigan Department of Health and Human Services, said, > “Rather than get up and get dressed and go to a casino, I am now able to gamble from my phone, from my computer, from my living room. Our interest is making sure the public that’s gambling is doing so healthily. It’s required us to be more creative in our approach to make sure we’re providing the necessary information as to what to look for as far as the signs, how to get help, and where that help is.”
Contributions and Taxes
In addition to the School Aid Fund, the MGCB made several critical contributions to state programs from the gaming taxes collected, including:
- $4 million to the First Responder Presumed Coverage Fund.
- $3.7 million to the Agriculture Equine Industry Development Fund.
The MGCB also directed $3.75 million to the “Don’t Regret the Bet” campaign, promoting responsible gaming participation, and gave $3 million to the state’s Compulsive Gambling Prevention Fund.
Michigan’s tax rates:
- In-person casino revenue: 8.1% (with an additional 9.9% going to the City of Detroit).
- Sports betting revenue: 8.4% for commercial casino sportsbooks and tribal online books.
- Commercial online sportsbooks: 9.65%.
- Online commercial and tribal iGaming taxes: range from 20% to 28% based on total annual revenue.
Overall, Michigan’s gaming industry continues to grow and contribute significantly to the state’s economy while addressing the challenges of responsible gambling.
