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August 11, 2017

Michigan makes over $4 Billion in taxes from Gambling

The 11’th largest state in the US Michigan legalized gambling just over 20 years ago, since that moment they’ve managed to raise an incredible amount in taxes from the industry. Three casinos that operate in the largest city Detroit have paid a total of $4.5 Billion, a figure which is truly astounding (these figures come from the Michigan gaming control Board). They were realized 20 years after the signing of the 1997 Michigan Gaming and Revenue Act that saw gambling legalized in the state!legalized gambling just over 20 years ago, since that moment they’ve managed to raise an incredible amount in taxes from the industry. Three casinos that operate in the largest city Detroit have paid a total of $4.5 Billion, a figure which is truly astounding (these figures come from the Michigan gaming control Board). They were realized 20 years after the signing of the 1997 Michigan Gaming and Revenue Act that saw gambling legalized in the state!

 

Michigan have clearly spent their profits on important $1.9 Billion of the profits on public education initiatives throughout the state and the remaining money has been given to Detroit as wagering taxes. After the original legalization Casinos operating in Michigan were made to pay a total of 18% of their overall gaming revenues to the state. Rules which only lasted 7 years until 2004 when everything changes. Since 2004 Casinos have paid 10.9% of their gross receipts to the City of Detroit with the state itself only receiving 8.1%!

 

The Michigan Gaming Control Board has issued a couple of major licenses since the original legalization of Gambling in the state. The MGM Grand Detroit and MotorCity Hotels were given a license in 1999, followed by Greektown Casino Hotel in 2000. Since this there have been a massive 1400+ businesses opened which are all tied to these Casinos. This shows where all of the income has come from around Michigan and how they’ve managed to rack up nearly $5 Billion in taxes! There are nearly 7,000 workers in total throughout these companies.

 

When the figures were released, Richard Kalm who is the executive director of the MGCB said “Through the years, we oversaw the move from temporary to permanent casinos, watched the addition of hotels and other amenities and weathered the Greektown Casino bankruptcy. The MGCB has worked hard for 20 years to represent the interests of Michigan citizens while allowing the casinos’ management to run their businesses with reasonable oversight.”

 

One figure which was released in recent figures released by the MGCB they stated that over 4,000 people in the state openly admit to having a problem with gambling. This is not good and that is part of the reason the number of employees in the MGBC itself has gone up drastically in recent years. From 19 staff members in 1997 to 138 today. The board also said “The casino industry will continue to change as patrons’ interests evolve and technology brings new ways to game, The MGCB will adapt to these changes and new regulatory challenges while applying regulations reasonably, effectively and efficiently.”

 

Anyway, thank you for reading, if you want to find more news from around the gambling world feel free to check out some of our other articles.