Michigan Casinos, Sportsbooks, and iGaming Platforms Generated Half a Billion Dollars for the State in 2024

In 2024, the commercial and tribal gaming industries in Michigan had a record-setting year. The Michigan Gaming Control Board (MGCB) reports that gambling yielded more than half a billion dollars for the state in 2024. This came from the three land-based casinos in Detroit and from retail and online sports betting. It also features games from online gambling and fantasy sports.

Gambling in Michigan has a long history, and Governor Gretchen Whitmer legalized online gambling and sports betting in 2019. The Michigan Gaming Control Board was formed, and in late 2020, it began to issue licenses. The first online casinos were launched in 2021.

Tax revenue

Michigan taxes in-person casino revenue at just over 8%. It taxes sports betting revenue at 8.4%. This applies to casino sportsbooks and online tribal sportsbooks. The tax for commercial online sportsbooks is 9.65%. Online commercial and tribal online gaming taxes range based on total annual revenue. They can range from 20% to 28%. Collecting taxes on legal gambling is helping the state in various ways, particularly in public education.

The three land-based casinos accounted for more than $99 million of gaming tax receipts in 2024. Retail sports betting at these casinos generated about $655K. Michigan online gambling, including revenue from tribal casinos, generated more than $388 million in associated state taxes. Mobile sports bets generated $12.9 million and taxes on fantasy sports generated $297K.

A record-setting year

The recent release by the MGCB came shortly after the board reported that the state set new monthly records in November. Records were for the sports betting handle, online sports betting handle, and online casino revenue.

Michigan is in fourth place behind Nevada, New Jersey, and Pennsylvania when it comes to commercial gaming. Its growth in recent years is largely due to its legal iGaming market.

From supporting education to tackling illegal gambling, the Michigan Gaming Control Board continues to fulfill its mission to protect consumers and the public good.

Gaming grants

Most of the tax revenue goes to support K-12 public education through the School Aid Fund. The School Aid Fund receives tax revenue from Detroit casinos monthly. Online gaming, online sports betting, and fantasy contest taxes are transferred to the fund at the end of the fiscal year.

Henry Williams, Executive Director of the MGCB, believes this investment is critical to help develop Michigan’s future workforce. He was awarded the 2024 American Gambling Awards Regulator of the Year. The director and his team are committed to ensuring that Michigan’s gaming industry thrives in a responsible and sustainable way.

The MGCB also donated $4 million to the First Responder Presumed Coverage Fund. The Agriculture Equine Industry Development Fund received $3.7 million.

The MGCB also supports various responsible gaming programs and resources. The agency’s Emmy-winning “Don’t Regret the Bet” campaign received $3.75 million. The Compulsive Gambling Prevention Fund received $3 million.

Mental health and addiction counselors are feeling the impact of an increase in problem gambling. Donations to responsible gambling programs from the MGCB can help to encourage responsible gambling. Creative strategies are necessary, and every business hoping to help address this problem needs capital to do things like develop a new business plan and start out in the right way.

Tax hike proposal receives opposition

Some bills introduced in the Michigan Senate before the end of last year proposed small increases to online casino and online sports betting taxes. The Sports Betting Alliance (SBA) was opposed to this and sent out emails to users to ask them to oppose the legislation. The bills weren’t acted on before the end of 2024. Reintroducing them would be necessary for the new legislative session.

MGCB end-of-year release

The MGCB is making significant contributions to the state’s economy and public welfare. It has made strides in closing unlicensed gaming operators in the state in 2024. It removed more than 200 illegal machines in the state. It also issued six cease-and-desist letters after receiving tips from residents. The board has received national recognition for its efforts. It could become a model for other states in using best practices to enforce regulations.