The state of Michigan just gave other states in the USA $1.92 Billion reasons to consider legalizing online casino gambling and poker.
For the fiscal year of 2023. MI collected just under $2 Billion in revenue from their domestic poker and casino sites. That is a growth of 22% on their collections from 2022.
That puts Michigan in the number one spot nationwide, edging out gambling powerhouse New Jersey. Michigan features the 10th highest state population in the nation.
Initial projections suggested that tax collection totals would be in the range of $30 to $40 million, but the actual numbers were $354 million.
Unlike sports betting, which aims to keep money coming in evenly on both sides of each wager, casino gambling can always be counted on for consistent profits. Michigan offers most traditional casino options online, including blackjack, slots, and other table games.
The same is true for poker regarding profits, but largely due to the percentage of the pot rake that each gambling venue keeps.
Just last week, we published an article regarding the stagnancy of online gambling in the United States. Connecticut, Delaware, New Jersey, Michigan, Pennsylvania, and West Virginia are the only US States that feature online casino gambling.
Rhode Island has passed laws allowing for web-based real money casinos, but they’ve yet to license any vendors to operate. Nevada permits online poker rooms, but no other casino games are allowed over the web.
Now compare those 8 states to the 33 US territories that regulate online or mobile sports betting. Why is there such a disparity between online sportsbooks and other types of domestic web-based gambling in the United States?
Some of it is due to the popularity of pro and college sports. Betting on games has been embraced by many pro franchises and leagues, and it is technically a game of skill that places the prospect of a payout in the gambler’s hands.
Casino gambling, outside of poker, is largely comprised of games of chance and, much like the lottery, is viewed as a routine loser. There’s also the lure of casino games and their addictive nature.
Couple that with the convenience that online gambling options offer, and there is the very real potential to develop problem gaming habits. In downtrodden economic regions like Detroit, desperation can cause low-income gamblers to risk too much and lose money that is intended for essential needs.
Despite MI’s number-one status in online gambling collections, they rank fifth behind Nevada, New Jersey, Pennsylvania, and New York in total collections when including in-person casinos and poker rooms.
The Detroit Free Press | Michigan Chronicle | WZZM 13 ABC Grand Rapids