During January 2021, internet gambling online casinos and online sports betting became legal in the State of Michigan. The Michigan Gaming Control Board (MGCB) announced that internet gaming platforms reported $94.85 million in online gaming receipts for May. MGCB overseas the regulatory aspect of online gambling and sports betting. The sports betting online operators reported $19.46 million in gross receipts and a total handle of $237.6 million during the same period.
“Adjusted gross receipts for internet casino gaming were up two-tenths of a percent compared with April, which means state, city and tribal governments received more revenue,” said Henry Williams, MGCB executive director.MGCB June 15, 2021
Michigan Casino Gambling and Sports Betting Payments/Taxes for May 2021
Payments and taxes are computed based on adjusted gross receipts of $89.06 million for online gaming and $9.88 million for online sports betting for May 2021. These numbers include deductions for the value of incentives, such as free play offered as incentives to patrons. In all, the platforms provided approx. $18.7 million in payments and taxes to Michigan. The gaming payments/taxes paid to the State of Michigan were $18.1 million, which far exceeded the online sports betting payments/taxes which were $615,153.
For online internet gaming, Michigan receives 70% of the tax from commercial operators. In addition, it receives 80% of the payments from Native American tribal operators. The payment/tax rate ranges between 20% to 28% based on adjusted gross yearly receipts.
For online internet sports betting, operators of commercial casinos pay 70% of the 8.4% tax to Michigan. Secondly, the city of Detroit receives 30%. Thirdly, Native American tribal operators provide a payment of 8.4% to the State of Michigan based on adjusted gross internet sports betting receipts.
There are three Detroit based casinos which have agreements with online gambling and sports betting platforms. Firstly, Greektown Casino is partnering with Barstool Sportsbook & Casino. Secondly, MGM Grand Detroit is partnering with the BetMGM online casino & sports betting platform. Thirdly, MotorCity Casino is partnering with FanDuel for an internet casino and sports betting platform. They reported $5.2 million in online gaming taxes/fees and $378,632 in online sports betting taxes/fees. At the same time, Native American operators reported $1.9 million of payments from wagering to their tribal governments.