If 2023 has told us anything, it’s that online casino revenue is continuing to grow in Michigan.
With all Michigan online casinos already nearly at the 2022 yearly revenue total through 10 months of 2023, it means online operators are cashing in.
What it also means is tax revenue is going to new highs in the Michigan iGaming industry, as well.
Michigan’s online casino tax revenue history
Tax revenue from online casino gaming has been a big resource for the state of Michigan.
Just about three years old, Michigan is already well over $1 billion in tax revenue from iGaming.
Here’s a breakdown of what we have seen over the last three years.
| Year | State Tax | City Taxes | Local Jurisdiction Payments | Total Tax Revenue |
|---|---|---|---|---|
| 2021 | $201.7 million | $55.3 million | $22.4 million | $279.3 million |
| 2022 | $289.2 million | $77.8 million | $32.8 million | $399.9 million |
| 2023 (Jan.-Oct.) | $286.9 million | $72.8 million | $34.8 million | $394.5 million |
Online casino tax revenue approaching $475 million in 2023
Though there are still two months of data yet to come in for 2023, online casino tax revenue is already nearly at a yearly high.
The first 10 months of 2023 see us just about $5 million shy of all of 2022’s tax revenue.
For the year, 2023 is averaging $39.5 million in monthly tax revenue for the state.
Should that pace continue, Michigan will finish at $473.5 million in yearly tax revenue from online casinos. It’s certainly not out of the question to think it could even get to $475 million.
READ ABOUT MICHIGAN ONLINE CASINOS:
Can Michigan reach $500 million in online casino yearly tax revenue?
This number may have felt like an impossible goal in 2022 at $399.9 million through 12 months.
However, we are seeing online casino revenue continue to grow in the state. There’s been no sign of slowing down or plateauing.
Right now, 2023 is on pace to record about 18.8% more tax revenue from iGaming than 2022 did.
While 2024 may not see that same pace throughout the year, growth from $475 million to $500 million would just be another 5.3%.
Where do Michigan online casino taxes go?
Money that is raised through online casino tax revenue is spread out to different funds within the state.
Among those that receive the taxes are:
- Internet Gaming Fund
- Michigan Strategic Fund
- School Aid Fund
The city of Detroit and local governing bodies also receive their fair share of the total tax revenue.
While those funds sound a bit vague, they are used to aid other funds that include responsible gambling programs and first responders.
The School Aid Fund is the largest recipient of gambling tax revenue.
