$2.5 Billion Collected in Taxes by Michigan Gaming Control Board to Support K-12 Schools Since its Creation 1997
In a recent press release, the Michigan Gaming Control Board (“MGCB”) announced that it had collected $2.5 Billion in tax revenue from the Detroit casinos and internet gaming, internet sports betting, and fantasy contest operators since the agency’s creation in 1997. This revenue directly supports Michigan’s School Aid Fund.
The taxes paid through 2021 are calculated 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 since the legalization of internet gaming in 2019.
“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.”
“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.”
Please see the release for more details of the exact breakdown of tax revenue generated by the type of games for both School Aid Fund and the City of Detroit.
Bipartisan Deal Expanding Funding for the Michigan Gaming Control Board Approved by State Legislature Media Day
The Michigan Gaming Control Board (“MGCB”) issued a press release to celebrate the approval of the State of Michigan’s Fiscal Year 2023 budget, which includes $7 million in additional funding for the MGCB. The budget is now heading to the Governor’s desk for approval, where it is expected to take effect at the beginning of the fiscal year on October 1.
The expanded funding will support directing citizens to services available for problem gambling, extending its outreach to community organizations, and creating a comprehensive responsible gaming messaging campaign. Additionally, the budget provides for a stable funding source for charitable gaming millionaire party events, ensuring the MGCB will continue to operate at its current levels of service for charities without having to increase licensing fees.
In addition, funding was approved for new MGCB positions and IT support and infrastructure to assist with the surge of increased internet gaming activity, internet sports betting, and fantasy contests. The funding will also allow for upgrades to the network speeds and storage capacity at the MGCB office to enable greater support operations and the transfer of large regulatory files.
“I would like to thank Governor Whitmer and the legislature for their leadership and a budget deal that recognizes the crucial role the MGCB plays in ensuring fair and honest gaming in the State of Michigan. said MGCB Executive Director Henry Williams. “Our 2023 budget emphasizes investments to help strengthen our mission and integrity, support local charities, and educate Michigan citizens on ways to enjoy gaming responsibly.”
Detroit Casinos Report $98.6 Million June Aggregate Revenue
According to the June revenues released by the Michigan Gaming Control Board (MGCB), the three Detroit casinos reported $98.6 million in monthly aggregate revenue in June. Table games and slots generated $98.2 million in revenue, and retail sports betting generated $488,703 in revenue.
The June market shares were:
- MGM, 49%
- MotorCity, 34%
- Hollywood Casino at Greektown, 17%
Monthly revenue for table games and slots declined 7.2% when compared to June 2021 results and fell 7.6% when compared to May 2022 results. Through June 2022, table games and slot revenue rose 5.2% when compared with the same six-month period last year.
When compared with June 2021, monthly gaming revenue results were:
- MGM, $48.34 million, up 4.3%
- MotorCity, $33.51 million, down 9.8%
- Hollywood Casino at Greektown, $16.35 million, down 26.6%
The three Detroit casinos paid $8 million in gaming taxes to the State of Michigan, compared to $8.6 million for the same period last year. The casinos also reported submitting $11.7 million in wagering taxes and development agreement payments to the City of Detroit in June.
Second quarter aggregate revenue rose by a fractional 0.04% for the three Detroit casinos compared with second quarter 2021 results.
Gaming revenue by casino was:
- MGM, $155.1 million, up 14.3%
- MotorCity, $104.5 million, down 9.3%
- Hollywood Casino at Greektown, $61.7 million, down 12.1%
The three Detroit casinos paid $26.03 million in second quarter gaming taxes compared
with $26.02 million paid to the state of Michigan during the second quarter of 2021.
Retail sports betting qualified adjusted gross receipts (QAGR) for June fell 80.5% to $448,703 when compared with June 2021 results. Monthly QAGR was down 81.2% from the $2.4 million reported in May 2022. The Detroit casinos reported total retail sports betting handle of $22,378,536, and total gross receipts were $462,215.
June QAGR by casino was:
- MGM, -$22,251
- MotorCity, $165,931
- Hollywood Casino at Greektown, $305,023
Total retail sports betting handle was $22,378,536 and $462,215 in total gross receipts during June. The three Detroit casinos reported submitting taxes on retail sports betting in the amounts of $17,802 to the State of Michigan and $21,758 to the City of Detroit during for June 2022.
Year to date thru June 30, aggregate retail sports betting QAGR results were:
- MGM, $1.5 million
- MotorCity, $2.1 million
- Hollywood Casino at Greektown, $4.1 million
Fantasy contest operators reported total adjusted revenues of $1.3 million and paid taxes of $112,964 during May 2022.
Fantasy contest operators reported aggregated total adjusted revenues of $6.4 million and paid taxes of $538,629 to the state through May 30.
Gun Lake Casino Named One of West Michigan’s Best and Brightest Companies for a Third Straight Year
For a third consecutive year, Gun Lake Casino has been named one of West Michigan’s Best and Brightest Companies to Work For by the National Association for Business Resources (“NABR”). NABR identifies companies that display a commitment to excellence in communication, work-life balance, employee education, diversity, recognition, retention, and more.
“This honor means even more than ever before,” said Gun Lake Casino CEO Sal Semola, “we pride ourselves in taking care of our Team Members like our own family. It’s not just about the excellent benefits, it’s also about the great working environment and the culture that we have created, a culture that wouldn’t exist without great Team Members. Thank you to them for voting for us the third year in a row.”
To see more about the industry-leading benefits and future career opportunities, please see the press release.
Gun Lake Casino is owned by the Match-E-Be-Nash-She-Wish Band of Pottawatomi. For more information, visit www.gunlakecasino.com.
Association of Gaming Equipment Manufacturers Issues Call for Nominations for Seventh Annual Halle and Mead Memorial Awards
The Association of Gaming Equipment Manufacturers (“AGEM”) recently issued a Call for Nominations for the Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism and the Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications.
AGEM created the awards six years ago to honor and acknowledge the lasting impacts on gaming
by two distinct industry veterans who passed away unexpectedly. Jens Halle was a longtime Bally and Novomatic executive in Europe whose career ended as CEO of Merkur Gaming based in Florida. He died suddenly on May 20, 2015, at age 57. Peter Mead, the founder, and publisher of Casino Enterprise Management magazine, died suddenly in Las Vegas on June 24, 2015, at 54.
Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism
Nominees must have experience working in the global gaming supplier sector for a minimum of 10 years and possess the following traits and qualities that Jens displayed throughout his working life: professionalism, business success, international scope, attention to detail, and timely follow-up; a willingness to ‘go the extra mile,’ both figuratively and literally; a sense of humanity in an oft-times cutthroat business; a recognition of the importance of a handshake and a fair deal for all; and a dedication to the health of the industry as a whole.
Previous recipients of the Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism are Len Ainsworth in 2016, Rick Meitzler in 2017, Gavin Isaacs in 2018, Tom Nieman in 2019, the late Robert “Bob” McMonigle in 2020, and Sebastian Salat in 2021.
Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications
Nominees must have experience working in the mainstream media, gaming trade press, or individual gaming company PR/communications for a minimum of 10 years and possess the following traits and qualities that Peter displayed throughout his working life: quality reporting and communication with an emphasis on personal contact to generate ideas and gather information; taking risks and questioning the status quo; challenging the industry to consider new ideas, and identifying trusted partners to improve the overall product.
Previous recipients of the Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications are Howard Stutz in 2016, Roger Gros in 2017, Frank Legato in 2018, the late Dave Palermo in 2019, David Orrick in 2020, and Alan Feldman in 2021.
Nomination submissions must be received via email to Daron.Dorsey@AGEM.org by Aug. 31, 2022. They must include 300-700 original words identifying current gaming professionals and must meet the above criteria that aim to capture the unique attributes displayed by Halle and Mead during their storied careers.
Winners will be announced at G2E in Las Vegas on October 10-13.