HomePublicationsNewsletter ArchiveVolume 27Issue 26Michigan Operators Report $111.9 Million in July Gross Internet Gaming and Sports Betting Receipts

According to a press release, Michigan internet gaming operators reported $92.3 million in internet gaming gross receipts for July. Internet sports betting operators received $19.6 million in total gross sport betting receipts and reported a total handle of $188 million for the month.

Taxes and payments are based on adjusted gross receipts, which were $83.1 million for internet gaming and $12.4 million for internet sports betting during July. The operators paid approximately $17.8 million in taxes and payments to the State of Michigan for July, with Internet gaming contributing $17.1 million and internet sports betting contributing $762,220.

During July, Internet gaming adjusted gross receipts increased 25.6% month-over-month. This increase is due in part to June receipts being reduced by MGM Grand Detroit’s first free play deduction since launch in January. Michigan law limits the deduction for internet casino gaming free play to 10% or less of gross receipts in the first three years after launch.

For internet gaming, the state receives 70% of the total tax from the commercial operators and 80% of the total payment from tribal operators. The tax and payment rate ranges from 20% to 28% based on yearly adjusted gross receipts.

For internet sports betting, commercial operators pay 70% of the 8.4% tax to the state and 30% to the city of Detroit. Tribal operators make an 8.4% payment on adjusted gross receipts to the State of Michigan.

The three Detroit Casinos – MotorCity Casino, MGM Grand Detroit, and Greektown Casino - reported city wagering taxes and municipal service fees of $4.8 million for:

  • Internet gaming taxes and fees: $4.4 million
  • Internet sports betting taxes and fees: $377,233

Tribal operators reported making total payments of $2 million of wagering payment to the tribes’ governing bodies according to the MGCB.

From the Jan. 22 launch through July 30, aggregate internet gaming adjusted gross receipts totaled $518.7 million and aggregate internet sports betting adjusted gross sports betting receipts were $52.9 million.

An online gaming and sports betting revenue distribution table is available on the agency’s website.

During July, 13 operators were authorized for one or both forms of online wagering. Details for each operator’s internet gaming and internet sports betting results are available in tables published on the MGCB website.

 

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