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Michigan Gaming Summary

Background

Michigan has a state lottery, pari-mutuel betting on horse-racing, three commercial casinos in the city of Detroit, and Class-III Indian casinos.

Casino Gaming: Commercial casinos in Detroit

Development: The expansion of gaming in Michigan has paralleled national social trends in gaming acceptance. Parimutuel horse racing was legalized in 1933, followed by the legalization of a state lottery in 1972 and the explosion of gaming activity on Indian reservations in the 1980s. By the end of 1996, seven Indian tribes were operating 17 casinos in Michigan. Gaming has become a thriving industry in Michigan. The Michigan Lottery, which includes lottery ticket sales and charitable gaming, brought in 1.65 billion in fiscal year 1996.

Efforts to initiate legalized casino gaming in Detroit have been occurring since the 1970s. These efforts failed until the Windsor Casino opened its doors across the Detroit River in Canada in 1994. The steady flow of Michigan residents and U.S. dollars into the Windsor Casino, along with the continued expansion of Indian casinos in Michigan, has had a dramatic impact upon voter attitudes toward casino gaming. This attitudinal shift culminated with the passage of Proposal E in the November 1996 general election. Proposal E enacted the Michigan Gaming Control & Revenue Act (the "Act") by public referendum. The Act permited the development and licensing of three privately owned casinos within the Detroit city limits.

Regulation: The Detroit casinos are regulated by the Michigan Gaming Control Board.

Taxation: Effective tax rate: 24%. Originally set at 18%, as of September 1, 2004, the rate was raised to 24 percent. The wagering tax rate paid to the State of Michigan by the Detroit casinos went from 8.1% to 12.1%. The 6% is divided between the State of Michigan and the City of Detroit (two thirds of the tax (4%) is paid to the State and one third (2%) to the City of Detroit..

Currently, there are 3 casinos in Detroit: MotorCity, MGM Grand, and Greektown.

 

Indian Gaming

There are currently 12 federally recognized Indian tribes operating 19 casino locations. They are: Bay Mills Indian Community, Grand Traverse Band, Gun Lake Tribe, Hannahville Tribe, Keweenaw Bay Band, Lac Vieux Desert Band, Little River Band, Little Traverse Bay Bands, Nottawaseppi Huron Potawatomi, Pokagon Band, Saginaw Chippewa Indian Tribe, and the Sault Ste. Marie Tribe.

Michigan tribal casinos are operated under the authority of the Tribal-State Compacts mutually entered into between the Tribes and the State of Michigan, as well as the federal Indian Gaming Regulatory Act (IGRA). The Michigan Tribal Casinos make both 2% payments to Local Units of State Government/ Local Revenue Sharing Boards and payments to the Michigan Economic Development Corporation.   The payments are based on the "net win," which is the total amount wagered on each electronic game of chance, minus the total amount paid to players for winning wagers at such machines.

 

Lottery

Development: The Michigan Lottery was established to maximize net revenues to supplement state education programs, provide fun and entertaining games of chance, and to operate all games and bureau functions with nothing less than total integrity.

Beneficiaries:Since its inception in 1972, the Michigan Lottery has generated 15.2 billion in net revenues (current as of 2010) to support K-12 public education in Michigan.  In fiscal 2009 alone, the Lottery transferred 724.5 million directly to the state School Aid Fund.

The School Aid Fund is a restricted fund that can only be used for education.  Lottery revenues comprise roughly 5 percent of this fund, with the other 95 percent of the money coming from the state's sales and use tax, earmarked income tax and state education property tax, as well as cigarette, liquor and other taxes.

 

For more information:

Michigan Gaming Control Board
Annual reports, revenues and taxes for Detroit casinos.

Michigan Lottery 

Michigan Horseracing

Commercial Casino Revenue Data (Monthly)

For current year-to-date info and monthly stats, look at this report:

Detroit Casinos: Monthly Statistics
Revenues, Year/Year Change, and Market Share by Casino

 

Commercial Casino Revenue Data (Calendar Year)

 

Year
MGM Grand Detroit
MotorCity
Greektown
Total
1999
173,679,112.22
14,759,589.25
0.00
188,438,701.47
2000
397,235,334.93
315,746,974.38
30,650,659.55
743,632,968.86
2001
366,135,859.96
361,034,767.91
279,822,838.18
1,006,993,466.05
2002
394,981,693.27
402,513,542.51
327,648,264.68
1,125,143,500.46
2003
403,312,839.33
401,576,270.79
325,312,777.04
1,130,201,887.16
2004
433,269,430.39
436,107,617.60
319,887,388.89
1,189,264,436.88
2005
460,697,859.89
432,212,661.34
335,633,365.40
1,228,543,886.63
2006
489,635,967.64
468,653,111.03
345,013,744.60
1,303,302,823.27
2007
513,480,980.38
480,214,415.45
341,320,495.58
1,335,015,891.41
2008
578,306,948.18
464,978,705.28
316,298,982.20
1,359,584,635.67
2009
547,632,906.61
445,826,163.01
346,020,203.02
1,339,479,272.64
2010
581,887,436.10
446,409,013.40
349,632,635.44
1,377,929,084.94
2011
599,709,633.81
471,978,180.83
352,757,646.43
1,424,445,461.07
2012
604,879,416.74
459,750,323.64
352,104,685.88
1,416,734,426.25
2013
566,813,352.85
454,344,330.43
328,345,985.98
1,349,503,669.26

This chart has information on the total adjusted gross revenues reported by Detroit casinos for the calendar year in question.

Lottery Revenue Data (Fiscal Year ending September 30)

 

Year
Total Ticket Sales
Prizes Awarded
Prize %
Net Income
Net %
1999
1,730,917
944,508
54.56%
522,673
30.19%
2000
1,694,751
920,800
54.33%
614,537
36.26%
2001
1,614,668
873,325
54.08%
642,215
39.77%
2002
1,688,058
918,105
54.38%
651,082
38.56%
2003
1,681,548
919,222
54.66%
575,387
34.21%
2004
1,973,900
1,130,844
57.28%
629,997
31.91%
2005
2,069,493
1,179,642
57.00%
655,652
31.68%
2006
2,212,368
1,268,175
57.32%
683,124
30.87%
2007
2,342,597
1,355,263
57.8%
756,448
32.29%
2008
2,330,198
1,350,735
57.96%
757,259
32.49%
2009
2,377,437
1,436,373
60.41%
708,087
29.78%
2010
2,359,228
1,408,918
59.71%
720,273
30.53%
2011
2,339,954,260
1,344,325,434
57.45%
741,390,695
31.68%
2012
2,413,458,637
1,369,751,857
56.75%
789,186,825
32.70%
2013
2,476,398,393
1,461,543,405
59.02%
743,062,699
30.01%

All 1999-2010 numbers are in thousands--add 000 to get full amount. From 2011 on, dollar amounts are given.

"Total ticket sales" reflects all money wagered on the lottery in the fiscal year in question; from 1995 on, this includes money wagered on video lottery terminals."Prizes Awarded" is not adjusted for unclaimed prizes.. "Net Income" is the total revenue minus operating expenses and fees. Prize and net revenue percentages are taken from the total sales.

Michigan Gaming Timeline

1933: Parimutuel betting on the results of horse races at licensed race tracks legalized in Michigan

1972: Michigan State Lottery and various forms of Charitable Gaming legalized

1990: Keno game goes on sale (lottery)

1993: Seven Tribal-State Compacts approved in Michigan authorizing seven federally recognized Indian tribes to operate casinos on tribal reservations and certain tribal trust lands in the state

1994: Seven Indian tribes begin legally operating casinos in Michigan pursuant to federally mandated Tribal-State Compacts (currently, there are 17 Native American casinos in Michigan)

1994: Windsor (Ontario, Canada) Casino opens for business

1996: Michigan joins "The Big Game" multi-state lottery

1996: Michigan voters approved Proposal E, authorizing up to three licensed casinos to be built in Detroit. Proposal E subsequently took effect as law on December 5, 1996, as the Michigan Gaming Control & Revenue Act

1997: In November, Detroit Mayor Dennis Archer selects and announces final three proposed Detroit casino developers: Atwater/Circus Circus; Greektown/Sault Ste. Marie Tribe of Chippewa Indians; and MGM Grand.

1999: MGM Grand Detroit Casino begins casino gaming operations (4:30 PM 7/29/99) at its temporary location.

1999: Detroit Entertainment, LLC, begins casino gaming operations in its temporary MotorCity Casino (6:00PM 12/14/99)

2000: Greektown casino opens in a temporary facility (11/10/00)

2004: In September, Michigan law is amended to raise the casino tax to 24% (from 18%)

2005: MGM Mirage acquires MotorCity casino as part of the acquisition of Mandalay Resort Group, sells MotorCity to Marian Ilitch's Detroit Entertainment

2007: MGM Grand Detroit opens permanent casino at 1777 Third Street

2008: Greektown casino files Chapter 11 bankruptcy

2009: Hotel, theater open at Greektown casino

2010: The Office of Racing Commissioner (ORC) was integrated into the Michigan Gaming Control Board.

 


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Last modified Thursday, 29-May-2014 14:13:49 PDT