News Release: Michigan Gaming Control Board collects $2.5 billion in taxes to support K-12 schools since authorizing act signed in 1997

Contact: Mary Kay Bean, beanm1@michigan.gov

For Immediate Release:

Michigan Gaming Control Board collects $2.5 billion in taxes to support K-12 schools since authorizing act signed in 1997

Detroit, July 14, 2022 – The Michigan Gaming Control Board has collected a lot of silver — $2.5 billion worth — from the Detroit casinos and internet gaming, internet sports betting, and fantasy contest operators for Michigan’s School Aid Fund in the agency’s 25 years of existence.

The taxes paid through 2021 are based on revenues and receipts from casino slots, casino table games and, more recently, retail sports betting, internet gaming, internet sports betting and fantasy contests.

“Dollars invested in education are critical to the development of Michigan’s future workforce,” said Henry Williams, MGCB executive director. “My MGCB colleagues and I are proud to play our role in helping Michigan schools by collecting wagering taxes on legal, regulated gaming.”

Wagering taxes on the Detroit casinos for gaming and retail sports betting are collected and sent monthly to the School Aid Fund. For internet gaming, internet sports betting, and fantasy contests, taxes are transferred to the School Aid Fund at the end of the fiscal year. This happens after other required allocations are made from the Internet Gaming, Internet Sports Betting, and Fantasy Contest funds. The respective laws authorizing the gaming established the transfer schedules.

Education tax funding by type of gaming includes:

Year	Type	Total
1999-2021	Retail Tables/Slots	$2.43 billion
2020-2021	Retail Sports Betting	$1.7 million
2021	Internet Gaming	$87.2 million
2021	Internet Sports Betting	$1.8 million
2019-2021	Fantasy Contest	$2.4 million
1999-2021	Total	$2.52 billion

 The Michigan Gaming Control and Revenue Act was signed by former Gov. John Engler on July 17, 1997. Gov. Gretchen Whitmer signed the Lawful Internet Gaming Act, Lawful Sports Betting Act, and the Fantasy Contests Consumer Protection Act  on Dec. 20, 2019. The MGCB authorized online gaming and sports betting on Jan. 22, 2021. If a person as of May 1, 2018, met the definition of a fantasy contest operator in the Fantasy Contests Consumer Protection Act, the person, or entity, can continue offering fantasy contests until issued or denied a license under the law, which also was signed by Gov. Whitmer on Dec. 20, 2019.

“Legal, regulated gaming has grown in Michigan in ways no one likely imagined in 1997,” Williams said. “At that time, the internet had about 130 million users, and many thought it was a passing fad. The focus was on the brick-and-mortar casinos and what they could do for the city of Detroit. Both forms of gaming have proven their worth in raising funding for Michigan’s schools.”

Detroit tax revenue

The Detroit casinos have provided significant tax revenue to the city of Detroit since their inception. The casinos have reported submitting to the city an estimated $3.44 billion in taxes from 1999 through 2021. 

Year	Type	Total
1999-2021	Retail Tables/Slots	$ 3.39 billion
2020-2021	Retail Sports Betting	$ 2.1 million
2021	Internet Gaming	$ 48.0 million
2021	Internet Sports Betting	$ 2.7 million
1999-2021	Total	$ 3.44 billion

(Note: The MGCB has tracked and confirmed taxes since 2012. Taxes for 1999-2011 are estimated.)

Behind the scenes work

Every year, MGCB employees review applications, conduct investigations and perform many other tasks behind the scenes of legal gaming.

In 2021 alone, the agency licensed or registered 2,021 entities, including 878 related to the commercial casinos and 651 related to internet gaming and sports betting.

Investigators conducted:

• 189 investigations for new or renewed licenses and supplemental licenses, which includes background investigations of new key individuals or businesses and transfers of ownership
• Nearly 320 criminal investigations, including 240 based on illegal gambling tips received from the public

Since the agency’s inception, the Employee Licensing staff has issued more than 83,000 occupational licenses, including 32,500 initial licenses and 50,700 license renewals.

The Gaming Lab section accomplished 1,444 gaming product evaluations in 2021:

• 1,384 for new gaming software
• 60 for new gaming hardware

The Gaming Lab also completed:

• 259 audits of independent test laboratories’ software certifications with no issues found
• 1,025 inspections of slot machine software returning to the gaming floor and newly installed slot machines at the three Detroit casinos to ensure each machine uses approved software

“The MGCB applies rigorous standards set by Michigan laws and our administrative rules to make sure Michigan residents and visitors enjoy fair gaming whether they visit a Detroit casino or an authorized internet operator,” Williams said. “It’s a big task for a small agency, but we have a reputation of getting things done.”

Responsible Gaming

The MGCB maintains two self-exclusion programs for problem gamblers: the Disassociated Persons List and the Internet Gaming and Sports Betting Responsible Gaming Database. Members of the public can ban themselves from the Detroit casinos with the option to choose to remain on the Disassociated Persons List or opt out after five years. The Internet Gaming and Sports Betting database can be joined for one or both forms of gaming — a ban from all Michigan-authorized operators — for one or five years.

As of July 2, 2022, the agency had processed 4,139 applications for the Disassociated Persons List, including 147 applicants processed in 2021 and 108 applicants processed through June 2022. The agency had received 203 applications for the responsible gaming database as of May 23, 2022. At that time, 165 participants were placed on the internet gaming list and 154 on the internet sports betting list with five applications pending. The public may contact the MGCB at 1-888-223-3044 for more information about self-exclusion options and application information.

"The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the State of Michigan."

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• MGCB silver anniversary news release July 2022.docx