Detroit Mayor Mike Duggan credited online gambling taxes helping the city offset losses due to the COVID-19 pandemic.
The mayor also predicted that online gaming will help balance the city’s budget for the Financial year 2023which begins in July.
How has online gambling helped Detroit?
In fiscal year 2021, $26.6 million from General fund revenue comes from iGaming. That same year, Detroit forecast revenue of $1.084 billion, but only managed $1.015 billion.
For the Financial year 2022iGaming, which includes online casinos and sports betting, is expected to bring in $71.1 million in revenue. If the industry lived up to that expectation, it would push Detroit’s general fund to more than $1.1 billion.
While speaking with council members, Duggan discussed the impact iGaming has had on the city.
“In December 2019, the casinos went to Lansing and demanded legislation to allow Internet gambling. We reached an agreement, with the support of our Detroit delegation, that the city would get a share of Internet gambling… that income from Internet gambling, which was new to us, has so far compensated for the losses in our tax revenue.
Take a look at the road to iGaming
To advise Fred Durham IIIthe man behind the legalization of online gambling, says the city is reaping the rewards.
Talk with the Detroit Free PressDurham has this to say:
“We have the ability to capture those dollars. During a pandemic, if they close, obviously people can’t spend money and we generate less revenue. But the ability to capture online has created stabilization or a safety net for us so that we don’t lose vital revenue for city services. »
Motor City is also expanding its iGaming tax revenue projects over the next few fiscal years. The city estimates that tax revenue will increase to more than $76 million by 2026.
- $74.6 million – fiscal year 2023
- $75.2 million – fiscal year 2024
- $76.1 million – fiscal year 2025
- $76.9 million – fiscal year 2026
Future projections correlate with the success of Michigan Online Games. In 2021, $3.7 billion was wagered online, generating $292.2 million in revenue.
IGaming brought in $1.1 billion in tax revenue, which resulted in $209 million in state taxes. Municipal taxes were cleared just north of $60 million.
January was also another good month for the state. Sports betting management peaked at $496.8 million, translating to $34.7 million in casino revenue. The states’ share was $1.4 million in tax revenue.