A $1,000 net win from Detroit casino slots is taxed at 19%, with less than half - about $81 - going to schools. While the initial crossover would likely be small, the financial impact could be bigger.įor a net win of $1,000 from the iLottery, schools get $700. The Whitmer administration has worried about the “substitution effect” - that people who play the Lottery online will move to playing poker and other internet games offered by the casinos, particularly in the long term as they become more comfortable using electronic devices to gamble. The Lottery sent nearly $1 billion to the state’s school fund in the last fiscal year for which figures are available, 7% of which came from online games. The abundance of competition is a complicating factor, primarily due to concerns that letting casinos offer online gambling would hurt rapidly growing revenues from the state’s iLottery. Those include three commercial casinos in Detroit, 24 tribal casinos across western and northern Michigan, and the Lottery, which also has an online component. The development would be a landmark in a state with many gambling options already. Gretchen Whitmer are closing in on an agreement to legalize sports betting and internet gambling in Michigan, with final votes possible this week.

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