Michigan Online Gambling Revenue

The law legalizing Michigan online gambling was signed by Governor Gretchen Whitmer in December of 2019, with the first online casinos appearing in January of 2021 after following strict licensing procedures.

The law granted the ability for Michigan’s 12 tribal casinos and the three commercial casinos based in Detroit to partner with one online casino brand and one online poker brand.

The Michigan Gaming Control Board (MGCB), which is responsible for regulating and licensing gambling within the state, scheduled the date for online gambling platforms to launch on January 22, 2021, and many casinos were ready to go on that date. Some, however, launched later.

This page showcases some of the important Michigan gambling revenue statistics and how tax is allocated.

How are online casino operators taxed, and how is tax revenue allocated in Michigan?

Online casinos in Michigan with gross revenues of less than $4 million pay 20% tax, whereas those who collect revenues greater than $12 million will pay 28% tax.

Tax allocation is different between tribal casinos and Detroit’s commercial casinos.

Commercial operators:

Tribal Operators:

The Internet Gaming Fund covers funds for the MGCB, compulsive gambling prevention, first responder coverage, and payments to the School Aid Fund.

In addition, if payments to the city of Detroit fall below $183 million for the preceding year, up to 55% of the Internet Gaming Fund will be used to make up the difference.

Online Gambling in Michigan: Revenue Statistics (Lifetime)

Below is a list of the lifetime Michigan online gambling revenues in gross receipts for each casino operator from the time they launched, alongside how much internet gaming state tax they paid.

Platform Provider Operator Operation Launch Gross Receipts Internet Gaming State Tax
BetMGM MGM Grand Detroit January 2021 $702,195,134 $122,915,222
FanDuel MotorCity Casino January 2021 $303,932,974 $52,660,870
DraftKings Bay Mills January 2021 $300,550,437 $59,660,825
BetRivers Little River Casino Resort January 2021 $125,641,128 $24,241,251
Golden Nugget Ojibwa Casino Resort January 2021 $85,033,824 $16,056,632
WynnBET Kewadin Casino January 2021 $75,618,689 $14,107,623
Barstool Greektown Casino February 2021 $68,762,328 $11,177,675
PokerStars Odawa Casino Resort Petoskey January 2021 $56,758,541 $10,354,521
Caesars Leelenau Sands Casino January 2021 $44,128,736 $7,821,658
Four Winds Four Winds Casino February 2021 $37,852,073 $6,542,977
Play Gun Lake Gun Lake Casino April 2021 $21,861,079 $3,412,831
TwinSpires Island Resort & Casino January 2021 $21,603,654 $3,581,336
FireKeepers FireKeepers Casino July 2021 $14,190,070 $2,119,707
PointsBet Lac Vieux Desert Resort Casino May 2021 $9,072,116 $1,398,789
Eagle Casino Soaring Eagle Casino April 2022 $3,822,779 $556,102

FAQ

Which Michigan online casino operator generated the most tax revenue?

MGM Grand Detroit’s BetMGM platform, which was Michigan’s annual gambling revenue leader in 2021, generated the most tax revenue to date by a large margin.

When did online gambling become legal in Michigan?

Governor Gretchen Whitmer legalized online gambling in 2019, but the first online casinos, under instruction from the Michigan Gaming Control Board, first welcomed customers on January 22, 2021.

Do you have to pay taxes on online gambling in Michigan?

Yes. All gambling income earned within the state of Michigan is subject to tax, whether played online or in one of the land-based casinos. This tax should be reported on both federal and Michigan income tax returns.

References

  1. Michigan Gaming Control Board – Revenues and Wagering Tax Information, michigan.gov.
  2. Michigan Gaming Control Board – Governor Whitmer Signs Bipartisan Legislation Legalizing Sports Betting in Michigan; Revenue Supports School Aid Fund and First Responder Presumed Coverage Fund, michigan.gov, 20 December 2019.