(WXYZ) — Online sports betting and gaming become legal in Michigan on Friday at 12 p.m., and the Michigan Gaming Control Board is breaking down where the tax revenue is going with the money made from online gambling.
According to the state, the tax ad payment rate for online sports betting is 8.4% while the tax & payment rate for internet gaming ranges from 20% to 28%. Detroit casinos also may be required to pay a municipal services fee and development agreement payment to the city.
For Detroit casinos, the breakdown for the tax allocation is below.
- 30% to the City of Detroit
- 5% to the Michigan Agriculture Equine Industry Development Fund (up to $3 million per year)
- 65% to the Michigan Internet Sports Betting Fund or Michigan Internet Gaming Fund
Other money collecting under the acts will be used for the compulsive gaming prevention fund, first responder presumed coverage fund and the state school aid fund.