The Michigan Gaming Control Board announced Tuesday it is set to receive an additional $7 million in funding for Fiscal Year 2023.
Legislative leaders recently reached a bipartisan deal on the state budget, which now heads to Gov. Gretchen Whitmer for her signature. The additional funding for the MGCB is included in that deal, and is expected to mainly fund responsible gambling services.
It also will address new positions required by the MGCB, as well as charitable funding.
Three priorities with added MGCB funding from Michigan budget
In total, Michigan’s budget is nearly $76 billion. The budget is expected to take effect starting on Oct. 1.
“I would like to thank Gov. Whitmer and the legislature for their leadership and a budget deal that recognizes the crucial role the MGCB plays in ensuring fair and honest gaming in the State of Michigan. Our 2023 budget emphasizes investments to help strengthen our mission and integrity, support local charities, and educate Michigan citizens on ways to enjoy gaming responsibly,” said MGCB Executive Director Henry Williams.
MGCB is focused on three key points with the 2023 funding.
- Responsible Gaming: Create a comprehensive responsible gaming messaging campaign. Also direct citizens to available services for RG while extending the outreach of RG to community organizations.
- Millionaire Parties: Create a stable funding source for charitable gaming millionaire party events. The added funding will address capital concerns and ensure the MGCB can continue to service charities without an increase in licensing fees.
- Jobs/Infrastructure: Create new MGCB positions and IT support to assist with the higher-than-expected surge in internet gaming, online sports betting and fantasy contest activity. Also increase network storage capacity and speeds in MGCB casino offices to support operations. A total of 31 new staff positions is proposed.
Tax revenue aiding MGCB as well
The surge in online gambling hasn’t just raised the need for additional positions within the MGCB, it has also provided the organization with a lot of funding.
A percentage of tax revenue generated through internet gambling goes to the MGCB for its cost of regulating and enforcing the Internet Gaming Act.
When it comes to online casinos, tax rates range from 20-28% on operators based on their yearly adjusted gross receipts. Of that total, 65% from non-tribal operators and 70% from tribal operators is given to the Internet Gaming Fund.
For online sports betting, an 8.4% tax rate is issued to operators based on their adjusted gross sports betting receipts. Non-tribal operators then contribute 65% of that to the Internet Sports Betting Fund. Tribal operators provide 90%.
Both of those funds, as well as the Fantasy Contest Fund (8.4% tax rate on operators), contribute to the MGCB’s yearly operations.
Related Articles
