Tax revenue from online betting and gaming to benefit multiple funds

The new business is expected to generate more than $90 million for the state in the first year.

MICHIGAN, USA — Online gambling is underway in Michigan and comes with all new taxes. Sports bets will be taxed at 8.4{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1}, and online gaming between 20{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1} and 28{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1}.

So where is that money all going?

“$500,000 goes to the Compulsive Gaming Prevention Fund. Then there is two million dollars that goes to the First Responders Presumed Coverage Fund,” says David Zin, Chief Economist for the Senate Fiscal Agency. “And then what’s left over goes to the School Aid Fund.”

Zin helped conduct financial analysis of the online gaming bill for the Senate. He says even before online gambling, there was already a connection between casinos and school aid.

“There was some inertia that you were just going to continue earmarking money for the School Aid Fund,” he says.

After sending portions of the tax revenue to other locations, Zin estimates the school aid fund will earn a net two to three million dollars in the first year just from online betting and gaming alone. Money that can help schools of all grade levels in many different ways.

“It can be used for everything from special education to technology grants. You name it,” says Zin.

The new business is expected to generate more than $90 million for the state in the first year.

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