New Jersey Vs. Michigan: Who Got the Bigger Tax Revenue in 2021?

Lotteries, casinos, pari-mutuel wagering (e.g., horse races), sports betting, and video games are all examples of state-sanctioned gambling that generate money for state and municipal governments (e.g., video poker).

The state government receives a portion of the proceeds from all lottery tickets sold. The remainder of the funds will be used for prizes, retail commissions, and administrative costs (including advertising). The government often taxes a gambling operator's earnings in most other kinds of gaming. That is, once the operators have paid out winning wagers, the state taxes the money. Being informed on this topic allows you to be a better player, you know the best Michigan and NJ authorized online casinos, you win more, lose less, and if this is something that sounds nice to you – visit iGaming NJ, a website about everything that has to do with online gaming of the Garden State.

Tax Revenue of Michigan’s Gaming Industry

Michigan’s tax revenue from gaming

There are 26 casinos in the state of Michigan, 3 of which are commercial, 23 are tribal, their economic impact stands at $6.28 billion, the tax impact stands at $1.30 billion and the gross gaming revenue is $4.12 billion. Michigan’s gaming industry provides 37991 jobs. If you are interested in a more detailed breakdown of revenue taxes, casino by casino, here’s the source for you. The top 5 casino taxpayers in Michigan are BetMGM, DraftKings, FanDuel, BetRivers, and GoldNugget.

As for Michigan’s gaming tax rate – it stands at 19% (Gross Gaming Revenue), 10.9% of which goes to the city and 8.1% goes to the state. When it comes to the sports betting tax rates – they go as follows: 8.4% effective tax rate for land-based casinos, 9.65% for commercial online casinos, and 8.4% for tribal online casinos.

Michigan’s tax allocation of gaming

The city’s gaming tax is used to support the police force, community and development projects, public safety activities, anti-gang programs, capital renovations, and road improvements, among other things. The whole State Wagering Tax is put in the School Aid Fund, which is used to fund K-12 classrooms throughout the state.

Tax Revenue of New Jersey’s Gaming Industry

New Jersey’s tax revenue from gaming

New Jersey has 9 casinos, their economic impact stands at $6.45 billion, the tax impact stands at $1.19 billion, and the gross gaming revenue stands at $4.74 billion (by the end of 2021). The industry provides 39007 jobs.

When it comes to the tax rate, it’s a 9.25% effective rate on casino gross gaming revenue. As for the internet gaming revenue – it’s a 17.5% effective rate. The sports betting tax rate goes as follows – 9.75% effective rate for land-based casinos and 14.25% effective rate for online casinos.

New Jersey’s tax allocation of gaming

Gaming taxes in New Jersey go to help the elderly. Money in the Casino Revenue Fund is used solely to reduce property taxes, rentals, phone, gas, electric, and municipal utility charges for eligible senior citizens and disabled residents of the State, as well as to provide additional or expanded health services or benefits, as well as transportation services or benefits to eligible senior citizens and disabled residents, as provided by law.