In the first year of legal online betting, Michigan became “one of the largest regulated internet gaming markets in the world,” according to a sweeping state-by-state review of 2021 by the American Gaming Association.
The Michigan Gaming Control Board reported $2.7 billion in adjusted gaming revenue in 2021, with the majority of that coming from internet gaming. Michigan online casino platforms accounted for $1.11 billion of that figure, and online sports betting accounted for $292.2 million.
Michigan launched its online sports betting market on Jan. 22, 2021, following a delay caused by the COVID-19 pandemic. It proved to be an immediate success. In February 2021 the state reported more than $325 million in total sports betting handle — the highest figure at that time for any state in their first full month.
More than $600 million in taxes from gaming revenue was paid in Michigan for 2021, accounting for the total paid to the State Treasury and that paid to the City of Detroit and Tribal governments.
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Michigan Casinos See Increase In The Revenue
The state has 14 online casinos, some of which also offer live dealer games. It was one of the first states to do so.
Michigan’s land-based casinos are largely governed and operated by tribes and their partners, with the exception of those located in Detroit. In 2021, land-based casinos did not suffer from the advent of online gaming. In fact, most casinos also launched internet casinos or sports betting with a partner.
Detroit’s three casinos enjoyed a 104% increase in gross revenue from their electronic gaming devices and table games in 2021. In addition, the Detroit casinos pulled in land-based sports betting revenue of $27.3 million — an increase of 49.6% compared to the previous year when they were closed for extended periods due to the pandemic.
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Tax Revenue From Online Gaming And Sports Betting In Michigan
In 2021, Michigan received nearly $350 million in tax revenue from gaming activity — the bulk of that from casino gaming.
The City of Detroit, which hosts the three licensed Michigan casinos not affiliated with tribal lands, received $236.3 million in tax revenue from internet and land-based gaming activity. Tribal governments took in $22.4 million from internet gaming taxes, according to the AGA report.
Tax revenue from gaming is largely spent on the Michigan School Aid Fund, a program that funds K-12 public education. A portion of state tax revenue is also used for first-responder programs, as well as Michigan’s problem gambling resources.