History of gambling in Michigan
Michigan has over 26 physical casinos with thousands of gaming machines spread across the state, and it boasts 15 online casino providers. These land-based casinos are located across Michigan, but the most popular ones are in Detroit, Michigan's largest city.
However, many people don’t know this, but gambling in Michigan was introduced in 1933 when horse track racing was made legal by the Racing Act of 1933. With the Gaming Control and Revenue Act of 1966, casinos were permitted to operate in Michigan. In 1972, the Lottery Act made state lotteries legitimate. The first lottery draw took place in November 1972. Lottery draws on bingo, and raffles were authorized in 1972 by the Act of Charitable Gaming. The first casino was established in Michigan and the United States in 1984. Michigan lotteries became rampant in 1996 and were included in a game involving many US states. This marked the start of ticket purchases in Michigan.
But the 90s is where the law and latest regulations made it tricky for gambling in the state. The law-making body initially passed the Michigan gaming law, making Michigan online gambling illegal in 1999. However, the gaming regulation was dismissed in 2000 through the Public Act 185 of the Michigan legislature, allowing individuals to gamble. In November 2000, this Act gave birth to Michigan's second house casino.
Unlicensed casinos are unauthorized under Section 432 of the Michigan Statutes. Although there is no written law prohibiting gamblers from participating in illegal sites, there are penalties for doing so in MI. Also, Michigan has a long gambling history, as there are now numerous land casinos in Detroit. In addition, race betting, lottery tickets, and DFS betting are now widely available across Michigan.
Gov. Rick Snyder introduced the first legislative proposal to allow online lottery sales. However, the proposal was defeated in the house. However, in 2014, Michigan's online lottery was launched, and tickets to play could be purchased. The purchasable tickets were as follows:
- Instant Keno
- Cashword
- Pot O' Gold
In 2016, Senator Mike Kowall sponsored a bill for the Senate legislative house. However, it was once again debunked before reaching the final stage. The bill's dismissal raised the need for legislators to respond to the citizens' inquiry: "When does Michigan online gambling start?". Subsequent legislative proposals suggested by Sen. Wayne Schmidt and Curtis Hertel to make online gambling legal were disapproved by the house upon deliberation.
However, in 2017, the sponsorship of legislation authorizing gambling by Brandt Ide was in motion. This proposal was passed by the house in 2017 and was changed into law by the Senate in 2018. A lot of lawmakers have seen that gambling in itself is not bad - especially since the tax revenue MI earns through gambling allows a significant portion to be allotted to the School Aid Fund. The School Aid Fund has a total budget of $18 billion, and it is dedicated to helping educate K-12 students in the state - and because of the huge tax revenue from casinos in the state, MI lawmakers are more than happy to accede. In other words, gambling has done its turn for MI residents in general. Michigan allows all types of gambling games as of 2022, and it is set to continue being the 5th state in online gaming, next only to New Jersey and Pennsylvania.
In 2023, Michigan's online gambling revenue reached a record-breaking $2.30 billion, marking the highest annual total since the state legalized online sports betting and igaming. This represents an 18.3% increase from the $1.98 billion generated in 2022. The revenue was comprised of $1.90 billion from igaming and $420.4 million from sports betting, setting new records in both categories despite a steady sports betting handle of $4.60 billion. After promotional deductions, the adjusted gross receipts totaled $1.96 billion, up 18.8% year over year, contributing $369.8 million in taxes to the state. December saw peak monthly revenues, with online gambling bringing in $242.5 million, driven by significant growth in the igaming sector. Meanwhile, Detroit's land-based casino revenues declined by 3.1% to $1.24 billion in 2023, amidst a backdrop of regulatory actions against illegal operators by the Michigan Gaming Control Board to safeguard the integrity of the state's online gaming environment.
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