Gambling Was One of the Largest Tax Contributors in Michigan in 2022
It is difficult to contest the fact that Michigan’s gaming sector is flourishing. MI online casinos keep breaking revenue records. Retail gaming income is comparable to levels prior to the epidemic. Record tax collections accompany record income, which helps the state financially greatly. In total, the gambling market in Michigan reinvested almost $2 billion in the state throughout 2022. As a result, it is among the top sources of finance and tax revenue for the state.
Analyzing Gaming Tax Income in Michigan
The gambling market in Michigan has a variety of outlets, but here is how it all breaks down in terms of the money it returned to the state in 2022. And here’s a detailed analysis of the MI iGaming revenue that online casinos saw up until January 2023.
- Online casinos: In 2022, Michigan’s online casinos paid $289,2 million in state taxes and $77,8 million in local taxes. Additionally, these establishments paid $32.8 million in payments to governing bodies. That adds up to $399.9 million in total;
- Online sportsbooks: In 2022 these establishments generated $13.7 million in state taxes and $6.8 million in local taxes in Michigan. The sum comes to $20.5 million;
- Casinos in Detroit: State taxes collected from the casinos totaled $101.8 million. In addition, they contributed $155.6 million in local taxes. That brings the sum to $257.4 million;
- Sportsbooks in Detroit: For the year 2022, the three retail sportsbooks in Detroit paid $711,087 in state taxes and $869,106 in municipal taxes. This brings the total up to $1.6 million;
- Payment from tribal casinos: In 2022, the 23 tribe casinos in Michigan together paid $30.8 million to neighborhood organizations;
- Fantasy competitions: In all, Michigan received $1.4 million in tax income from fantasy sports. Michigan Lottery: The Michigan Lottery provided $1.25 billion to the Michigan School Aid Fund for the fiscal year 2022.
When everything is added up, $1.96 billion was reinvested back into the state of Michigan.