The City of Detroit has published its FY 2025 report. According to the document, fiscal revenues from online gambling and sports betting have become a major source of budget inflows, ranking 2nd only to income taxes.
Funds from the gaming industry support basic city services and public programs. Their pool includes police and fire protection, snow removal, infrastructure maintenance, and other sectors.
Key Financial Indicators of the City
In the first 5 months of the current fiscal year (July through November 2025), Detroit collected $133 million in gambling taxes, $24 million more than projected. The growth of online casinos and mobile sportsbooks primarily drove the jump. Increased activity is being recorded among both city residents and customers from other states using digital platforms.
Donnie Johnson, the local Deputy Budget Director, noted that iGaming revenues have shown resilience during economic downturns. This fact was evident during the pandemic when activity in the sector remained strong despite high unemployment and overall instability. There are no signs of a significant slowdown in the area now.
Online casinos generate significantly more taxes for the city than sports betting, although both niches continue to grow. Collectively, digital formats account for approximately half of all gambling fees. The remainder comes from land-based entertainment venues offering real-money wagering.
Currently, 3 licensed properties are operating on the territory:
- MotorCity Casino;
- MGM Grand Detroit;
- Hollywood Casino at Greektown.
Forecasts for the Rest of the Fiscal Year
The FY ends on June 30th, 2026. By that time, Detroit’s gaming taxes could reach $315 million. This amount is expected to account for approximately 22% of the city’s general fund, estimated at $1.41 billion. For comparison, the budget received $306 million in fiscal contributions from the sector by the end of fiscal year 2025.
Detroit’s strengthening position reflects the broader growth dynamics of the industry in Michigan. According to the state’s Gaming Control Board (MGCB), commercial and tribal operators reported a combined adjusted gross receipts of $3.3 billion for 2025, a 29.5% YoY increase.
The web segment in the region launched in 2021. Since then, 9 operators have received licences for digital platforms.
Detroit has a separate tax regime for different forms of entertainment:
- 10.9% — land-based casinos;
- 6−8.4% — internet gambling;
- 4.62% — retail bookmakers;
- 2.52% — online sports bets.
Mixed Opinions of the Opposition
Some experts and critics point out that the city’s growing dependence on gaming revenue carries social costs.
Key thoughts of representatives:
- Les Bernal. Stop Predatory Gambling’s National Director calls such a reliance an epic failure of public policy. He argues that the expansion of the web vertical exacerbates ludomania and harms the population’s mental health.
- Denzel McCampbell. Detroit’s Council believes that a balance must be found between financial gain and consumer protection. While deriving significant revenue from gaming growth, officials must consider the potential negative impacts on visitors. It is crucial to strengthen safeguards and ensure easy access to support for vulnerable groups.
Experts cite the decline in profits from other sources as another factor increasing the city’s dependence on the gambling industry. Funds, including state profit sharing and corporate income tax, have fallen below projected levels. This situation reflects the overall slowdown in the national economy.
Regional authorities scheduled a Revenue Estimating Conference on February 13th to review their assessments of key segments and approve updated metrics. The gathering is held regularly, twice a year.
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