The tax and payment rate for online sports betting is 8.4% with igaming ranging from 20% to 28%, while the Detroit casinos may also be required to pay a municipal services fee and a development agreement payment to the city.
Taxes collected from the Detroit casinos, Greektown, MGM Grand Detroit and MotorCity, will see 30% allocated to the city of Detroit, 65% to the state Internet Sports Betting Fund or the state Internet Gaming Fund, and 5% to the Michigan Agriculture Equine Industry Development Fund.
For internet gaming, a hold-harmless provision seeks to help the city recoup lost gaming tax revenue if Detroit collects less than US$183 million in a fiscal year.
For tribal casinos, online sports betting payments are allocated to the Internet Sports Betting Fund (90%) and the Michigan Strategic Fund (10%).
Internet gaming will see 20% allocated to local jurisdiction governing body for services, 70% to the state Internet Gaming Fund and 10% to the Michigan Strategic Fund.
Other money collected under these acts will be used for appropriated funding for MGCB, The Compulsive Gaming Prevention Fund, The First Responder Presumed Coverage Fund, and The State School Aid Fund.
“The Michigan Gaming Control Board and the state’s commercial and tribal casinos will begin a new era on January 22 with the launch of regulated online gaming and sports betting,” commented Richard Kalm, MGCB executive director.
“Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos. Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue,” Kalm added.
Those permitted to begin offering online casino gaming and/or online sports betting are Bay Mills Indian Community/DraftKings; Grand Traverse Band of Ottawa and Chippewa Indians/William Hill; Greektown Casino Hotel/Barstool Sportsbook; Hannahville Indian Community/TwinSpires; Keweenaw Bay Indian Community/Golden Nugget Online Gaming; Little River Band of Ottawa Indians/Rush Street; MGM Grand Detroit Casino/BetMGM; MotorCity Casino/FanDuel; and Sault Ste. Marie Tribe of Chippewa Indians/Wynn.
The MGCB expects to authorise additional operators and platform providers in the coming days and weeks as submissions are reviewed to ensure they meet the state’s regulatory requirements.
Source: Casino Beats
