The state of Michigan remains the 4th highest revenue-generating state when it comes to retail casinos, iGaming, and sports betting, both online and offline. According to the Michigan Gaming Control Board, 2024 was a record-breaking year as online casinos and sportsbooks delivered over $500 million in state taxes.

The Michigan Gaming Control Board has announced a record-breaking year for the state's gaming industry, which includes Detroit's three commercial casinos, online casinos, sportsbooks, and fantasy sports operators. In 2024, the gambling sector delivered over $501 million in state taxes, which is a substantial boost for Michigan’s K-12 public education system and other vital programs.

Record tax revenue from diverse gaming channels

Detroit's three prominent casinos - MotorCity Casino, MGM Grand Detroit, and Hollywood Casino at Greektown - played a pivotal role in the impressive figures. Combined, these establishments contributed $99.8 million in state gaming taxes. Retail sports betting at these venues added approximately $655,000 to the total.

The online gaming segment proved to be a significant revenue driver as well, generating nearly $388.5 million in taxes. Mobile sports betting added another $12.9 million, while taxes on fantasy sports fees contributed $297,000.

Executive Director for the MGCB, Henry Williams, highlighted the board's role in facilitating this success, saying: "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."

Education benefits take center stage

A substantial portion of the gaming tax revenue, $501.4 million, was directed to the Michigan School Aid Fund. These funds are earmarked for K-12 public education, providing critical support for schools across the state.

Additionally, the MGCB allocated funds to other state programs. The First Responder Presumed Coverage Fund received $4 million, while the Agriculture Equine Industry Development Fund benefited from $3.7 million. The board also invested $3.75 million in its Emmy Award-winning 'Don't Regret the Bet' responsible gaming campaign and $3 million into the state's Compulsive Gambling Prevention Fund.

Michigan: a gaming powerhouse

Michigan solidified its position as the fourth-largest commercial gaming state in the US, trailing only Pennsylvania, Nevada, and New Jersey. Much of this growth stems from the state's robust iGaming market, which has rapidly gained popularity among residents.

Despite the economic benefits, the expansion of online gaming has sparked concerns. Mental health professionals warn that the accessibility of online gambling has contributed to rising rates of problem gambling.

Addressing problem gambling

Gambling disorder specialist Alia Lucas, who works with the Michigan Department of Health and Human Services, noted the challenges posed by the widespread availability of online gaming: "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."

Lucas added that the state health agency has had to adapt its approach to meet the growing demand for problem gambling support. Efforts include public education on recognizing the signs of gambling addiction and providing accessible resources for those in need.

Tax rates and regulatory framework

Michigan's commercial and tribal gaming tax structure ensures significant contributions to state coffers. In-person casino revenue is taxed at 8.1%, with an additional 9.9% allocated to the City of Detroit. Meanwhile, sports betting revenue from casino sportsbooks and tribal online books is at 8.4%, while commercial online sportsbooks face a slightly higher rate of 9.65%. Online iGaming taxes, which apply to both commercial and tribal operators, range from 20% to up to 28% based on annual revenue.

With its gaming industry reaching new heights in 2024, Michigan has demonstrated the economic potential of a well-regulated gaming market. While the industry's growth has provided substantial benefits, it has also demonstrated the importance of addressing the social challenges associated with gambling.