Michigan directs online gambling money to public programs and schools

The Michigan Gaming Control Board uses internet gaming fund money to pay gambling oversight costs, support addiction prevention, and help pay first responder compensation costs. Compensation money goes to the Christopher R. Slezak first responder presumed coverage fund, which pays approved claims. Spending requires lawmakers’ approval and is subject to the exception referenced in section 15(2). Online gambling oversight and oversight of gambling events called millionaire parties come first, followed by $3 million each year for gambling addiction prevention. The first responder payment covers 50% of approved claim payments and fund administration costs, up to $7 million per fiscal year. The law took effect September 21, 2026.

The Michigan Gaming Control Board sends $1 million yearly through the Michigan strategic fund to tribal governments and sends remaining money to the state school aid fund. The tribal payment supports essential government services for federally recognized tribal governments in Michigan. Spending requires lawmakers’ approval and is subject to the exception referenced in section 15(2). Gambling oversight, addiction prevention, and first responder fund payments come before the tribal government payment. Tribal governments receive money under a distribution plan recommended by the Inter-Tribal Council of Michigan.

Nontribal online gambling operators pay state tax at rates from 20% to 28%, based on their annual gambling receipts calculated under the law. Tribal online gambling operators follow separate payment requirements in section 7(1)(f), rather than this tax schedule. The tax uses adjusted gross receipts, a measure of gambling revenue. Rates are 20% below $4 million, 22% from $4 million to below $8 million, and 24% from $8 million to below $10 million. Rates are 26% from $10 million to below $12 million and 28% at $12 million or more in annual adjusted gross receipts. If a city charges a casino licensee a 1.25% municipal services fee, it must also charge 1.25% on adjusted gross receipts from online gambling by a licensed operator whose casino is in that city. Existing city development agreements remain protected. Other taxes or fees aimed exclusively at online gambling operators are barred except as allowed by this act or section 12(17) of the Michigan Gaming Control and Revenue Act. Operators pay taxes or tribal payments monthly, by the tenth day of the following month.