Taxes from gambling operations are no longer a peripheral source of revenue in Detroit. They are now a core component of how the city budgets for operations.
A Big Line Item Behind Police and Public Works
In its adopted budget for 2025-26, Detroit budgeted income taxes of approximately $432 million. Meanwhile, casino wagering taxes were budgeted at approximately $292 million, which makes them a big line item in the city budget.
The source of that revenue is, according to a report from a Michigan news source, going directly into core city services such as police, fire, road maintenance, and more. That’s a big shift from talking about “casino revenue” as a source of extra funds, to talking about “casino taxes” as a source of funds for core operations.
Online Play is Doing More of the Work
What is changing is that online play is doing more of the work in bringing in that revenue. The Michigan Gaming Control Board announced that Detroit received $161.4 million in 2025 from its three commercial casinos in the form of iGaming and internet sports betting wagering taxes, as well as municipal services fees. Of that, $152.6 million was from iGaming, while $8.8 million was from internet sports betting. This is a significant figure in terms of representing more than half of the full-year projection of the city’s budget for its wagering tax.
The on-land segment appears to be relatively stable for the time being. The three Detroit casinos generated a revenue of $1.28 billion in 2025 for slots, tables, and retail sports betting. Table and slot gaming were down 1.3% year over year.
Why This Matters for the Market
For operators and regulators, Detroit’s dependence changes the incentives. If online wagering taxes are underwriting municipal services, enforcement against unlicensed competition becomes more than a consumer-protection issue—it becomes a revenue-protection issue. And when that revenue is forecast into the general fund, volatility in sports betting performance (and shifts in player behavior) becomes a city-level planning risk.
Detroit’s reliance on these figures changes the equation for gaming operators and regulators in the region. If tax revenue generated by online gaming is being used to fund city services, enforcement against unlicensed gaming sites is no longer simply a consumer protection issue. It’s now becoming a revenue protection issue.
Bottom Line
Detroit’s figures are part of a larger trend in the US that suggests tax revenue generated by iGaming is now “recession-resistant” when compared to casino gaming revenue growth. This could spell a louder voice for cities that receive a direct share of tax revenue generated by online gaming sites. Greater political pressure to ensure compliance and safety for consumers can also be expected.
