State Wagering Tax - 12.1% casinos' Net Win*
(Sect 12(1)) (also see Note A)


City Wagering Tax - 11.9% of casinos' Net Win*
(Sect 12(1)) (also see Note A)

Application Fees - $0.05 million x 3 casinos**
One-time fee

Licensing Fees - $0.025 million x 3 casinos
Payable annually

Annual State Services Fee
(Sect 12a(1))*** (also see Note B)
Each casino pays one-third of $25 million annually

Municipal Services Fee (Sect 13(1)) ($4 million x 3 casinos)
Payable annually

Effective Gaming-Related Tax Rate (State + City), based on $900 million Net Win* ... 24%

* Net Win (sometimes referred to as Adjusted Gross Receipts) is a casino's gross receipts, less winnings paid to wagerers. From the Net Win, a casino pays fees and taxes, employee wages and benefits, and other costs related to operating a casino.

** Additional costs for investigations may be incurred

*** Adjusted annually by Detroit Consumer Price Index. No single casino's share shall exceed 1/3 of the total Annual State Services Fee

Note A: State/City Wagering Tax - The State/City Wagering Tax totals 24% of the three casinos' Net Win. The entire State Wagering Tax (12.1% of the casinos' Net Win) is deposited into the School Aid Fund for statewide K-12 classroom education. The City Wagering Tax (11.9% of the casinos' Net Win) may be used by the City of Detroit for the hiring, training, and deployment of street patrol officers; neighborhood and downtown economic development programs designed to create local jobs; public safety programs such as emergency medical services, fire department programs, and street lighting; anti-gang and youth development programs; other programs that are designed to contribute to the improvement of the quality of life in the City; relief to the taxpayers of the City from one or more taxes or fees imposed by the City; the costs of capital improvements; and road repairs and improvements.

Note B: Annual State Services Fee - The day-to-day operating expenses of the MGCB are paid for by the Annual State Services Fee (this fee is not related to the casinos' gaming revenues). Each year, $2 million of this $25 million Fee goes toward compulsive gambling programs, administered by Michigan Department of Community Health.