Michigan Exceeds 2021 Online Gambling Tax Revenue Projections
It’s been 6 months since Michigan’s online casinos and online sports betting went live officially and the state is already reaping huge monetary rewards. The state tax revenue is almost at $90 million in just six months since online gambling was officially established in Michigan. This figure is expected to go up to $200 million by the time the year ends. By the time Michigan finally legalized online gambling many online casino operators were already prepared to start operating. So many online gambling sites were established and this is what has led to the tax revenue growth in Michigan.
Michigan’s Online Gambling Legislation and Tax Revenue
The legislation that would make online gambling and eventual success in Michigan was signed all the way back in December 2019 by governor Gretchen Whitmer. With this legislation online sports betting and online casinos could finally operate straight from Michigan. January 2021 saw the official launch of online gambling sites in the state. According to projections there was an expected $10 million to $50 million expected annually in tax revenue. And the year is not even over and that figure has already been doubled.
In total the state has collected $87.8 million in tax revenue in addition to the $34.7 million from tribal casino revenues. Online sportsbooks have a fixed tax rate of 8.4% while online casino sites have a tax rates ranging from 20% to 28%.
Michigan Online Gambling Revenue
Online casino sites and sports betting sites have received more than $483 million in bets in just the first half of 2021.
The state of Michigan is benefiting greatly from the tax revenues collected from gambling operators. Taxes collected from online gambling sites go towards funding the Michigan school aid program, the department of health programs to assist with problem gambling into a fund for firefighters getting affected by cancer. There are more initiatives that benefit from the tax revenues.
Positives of online gambling in States like Michigan will go a long way in convincing other restrictive States to legalize online gambling operators and their own States.
We will keep you updated with any other States that may open up the online gambling industry.