Early this year, the Michigan Gaming Control Board revealed that the gambling industry in the state generated a total tax revenue of $1.96 billion in 2022. This amount came from a wide variety of sources, considering that Michigan permits online and retail gambling in different capacities.
Online casinos were the largest contributor to the total tax revenue in 2022. They brought in $289.2 million in state taxes and another $77.8 million in city taxes last year. When added to the governing body of jurisdictions payments worth $32.8 million, the total tax revenue from Michigan online casinos came to $399.9 million.
The total revenue from online casinos is more than what was generated from sports betting, tribal casinos and Detroit online gambling centres put together. Interestingly, in 2023, online casino tax revenue is expected to rise by 27%, possibly adding $80 million to the total tax payments generated.
Michigan sports betting apps also brought it a sizable $20.5 million tax revenue. This total amount comprised $13.7 million paid as state taxes and $6.8 million worth of city taxes in 2022. Similarly, Detroit sportsbooks pulled in $1.6 million, paying more local taxes than state taxes for the outgone year. On the other hand, Detroit casinos fared better with a whopping $257.4 million worth of tax revenue.
The Michigan Lottery was the only sector of the gambling industry that generated above $1 billion worth of tax revenue. Michigan recorded a total tax figure of $1.25 billion from the lottery and another $1.4 million from Fantasy Contests within the state. The 23 tribal casinos in the state completed the tally with a contribution of $30.8 million to local authorities.