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Land-BasedCasinoLegal & Regulatory

Michigan collects $4.5bn in tax following gambling legalisation

Thre

michigancasino
e casinos operating in the city of Detroit, Michigan have paid over $4.5bn in taxes to the state of Michigan since gambling was first permitted 20 years ago, according to figures released by the Michigan Gaming Control Board (MGCB).

The figures, which were released to commemorate the anniversary of the signing of the 1997 Michigan Gaming & Revenue Act, show that $1.9bn of these taxes have paid to public education initiatives in the state, while the remaining $2.6bn was paid in wagering taxes to the city of Detroit.

Following the legalisation in 1997, casinos operating in the state were charged 18% on their gross gaming revenues, however this was amended in 2004 to its current level of 8.1% being paid to the state, with a 10.9% tax on the casino’s gross receipts being payable to the city of Detroit.

The MGCB issued licences to the MGM Grand Detroit & MotorCity Casino Hotels in 1999 and the Greektown Casino Hotel in November 2000. Since then more than 1,400 businesses tied to the casinos, including 800 Michigan companies have been registered with the gaming board. Over 6,800 employees at the casinos are licensed through the MGCB.

In a statement released with the figures, Richard Kalm, executive director of the MGCB since 2007 said: “Through the years, we oversaw the move from temporary to permanent casinos, watched the addition of hotels and other amenities and weathered the Greektown Casino bankruptcy.

The MGCB has worked hard for 20 years to represent the interests of Michigan citizens while allowing the casinos’ management to run their businesses with reasonable oversight.”

Figures released by the MGCB also revealed that 4,000 people in the state have identified themselves as problem gamblers and have voluntarily banned themselves for life from Detroit’s casinos.

The number of people working at the Michigan Gaming and Control Board has grown in tandem with the states casino industry, rising from 19 people in 1997 to 138 employees today.

The board added: "The casino industry will continue to change as patrons' interests evolve and technology brings new ways to game,

The MGCB will adapt to these changes and new regulatory challenges while applying regulations reasonably, effectively and efficiently."


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