Michigan should raise gambling taxes alongside tobacco and vape taxes, Nicholas Hess argued in a Nov. 5 opinion column published by The Alpena News. His argument links state revenue needs with concerns about the public-health costs of gambling.
Gaming revenue anchors the tax argument
Hess cites more than $340 million in gross revenue generated by Michigan casinos and gaming operators in June 2026. He also reports that Michigan casinos generated nearly $3 billion in revenue in 2025, with the state collecting nearly $600 million in taxes.
Those figures underpin his case for raising taxes on gambling as part of a broader effort to address what he describes as a structural state revenue problem that lawmakers have left inadequately addressed for decades.
The column also advocates higher tobacco taxes and a tax on vape products. According to Hess, Michigan’s cigarette tax is $2 per pack of 20 cigarettes, and the state is one of 16 that do not tax vape products.
Problem-gambling concerns inform the proposal
Hess reports that calls to Michigan’s Problem Gambling Helpline have increased by 171% since gambling legalization. He cites the National Council on Problem Gambling’s estimate that gambling proliferation costs the United States $14 billion annually.
The column describes teens and young adults as especially vulnerable to addiction, which can overlap with depression, anxiety and self-harm. Hess also points to the Michigan League for Public Policy’s latest Kids Count in Michigan report in discussing teen mental-health concerns.
Alongside his call for higher gambling, tobacco and vape taxes, Hess argues that Michigan should pursue more stable revenue sources, including taxes on income and corporate profits.
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Source: As reported by The Alpena News.