Michigan Topples New Jersey as Online Gambling Royalty, Bringing $354M
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The digital dice are rolling in the Great Lakes State, as Michigan has been crowned the nation's king of online gambling. According to a recent report by the American Gaming Association (AGA), the state has seen $1.92 billion tossed into online betting pools, making it a joint leader with New Jersey in 2023. However, it's Michigan by a nose—or, more accurately, by an extra $115,500, as reported by the Detroit Free Press.
While in terms of population, it only stands as the 10th most populous, Michigan has defied the odds, coming in as the fifth-largest in overall gambling revenue amongst states, securing a hefty $3.6 billion last year. This was highlighted by the WZZM13, putting them behind the powerhouses of Nevada, New Jersey, Pennsylvania, and New York. However, in a startling growth spurt, the state's online betting surged by 22.9% from 2022.
But it's not just about the wagers. The tax revenue from this digital playland has proven to be a substantial boon for Michigan. The Michigan Chronicle reports that online gambling taxes contributed a staggering $354 million to state coffers in the last year alone. This is a windfall that far outpaces the $30 to $40 million initially forecasted, with the lion's share directed towards the state's School Aid Fund, a lifesaver for K-12 public education. Detroit, which has reaped the benefits of $89 million in internet gaming taxes from its three commercial casinos, is particularly feeling the fiscal love.
On the ground, traditional casinos are experiencing the ripple effects of the online wave. A 2.7% dip in gross gaming revenue for physical casinos in Michigan, sliding in just behind Indiana, Maryland, and Mississippi in terms of losses. But that hasn't dulled Detroit's shine as one of the premier casino markets. The city raked in $1.236 billion in 2023, a position that places them prominently in the country's top eight commercial gambling hotspots.
The state's Department of Health and Human Services, aware of potential downsides, reminds residents to wager wisely. As part of their outreach, the MDHHS problem gambling hotline offers counseling services round-the-clock, with the number 1-800-270-7117 available for those who need support, as underscored by WZZM13.
