Michigan Tribal Gaming Payments Decreased 1.4% in 2023

The Michigan Gaming Control Board has released the data on payments made by the state’s tribal casinos to local entities in 2023. As reported, gaming payments made by 23 tribal casinos in the state have declined for the second consecutive year.

1.4% Tribal Payment Decline:

According to Play Michigan citing the official 2023 Tribal Gaming Annual Report (pdf) from the Michigan Gaming Control Board (MGCB), tribal casinos’ payments to local entities decreased 1.4% in 2023 over the amount funneled in 2022.

Second Consecutive Annual Decline:

The 23 tribal casinos stand for almost 90% of all land-based gaming operations in Michigan, with only three other Detroit-based resorts. As Play Michigan reports, the commission’s report reflects tribal payments made to the local state authorities out of slot machine revenues. These payments account for around 2% of the tribal net gaming revenues, according to the source, and the reported payment decline indicates the second year of slightly lower revenue levels in tribal casinos.

$30.4 Million in Tribal Payments:

According to Play Michigan, the MGCB’s report is the only vehicle for the regulator to monitor the gaming revenue trend in tribal casinos in Michigan representing the base for the state revenues and contributions leverage. Such payments made to state entities reportedly amounted to $30.4 million in 2023. Compared to the $30.8 million paid in 2022,  payments are 1.4% down to indicate a slightly decreasing trend for the second year.

Potawatomi Decreased Payments by 12%:

As reported, 23 tribal casinos in the state are operated by 12 Native American tribes. Out of total, four casino operators experienced a decline in 2023, which represents a better result than in 2022 when eight tribes reported a decline. In 2023, three operators decreased their 2% payments and ranged from 1.3 to 4% lower levels on a year-over-year basis. But, as Play Michigan reports, the Pokagon Band of Potawatomi Indians saw a decline of 12% in payments funneled from gaming revenues generated in its three Four Winds Casinos.

Chippewa Increased Payments by 17.7%:

The same source reports that eight out of 12 tribal casinos in the state increased their payments to local state entities in 2023. The highest increase of 17.7% was reportedly seen from the Sault Ste. Marie Tribe of Chippewa Indians running Kewadin Casinos. The operator reportedly exceeded the 2022 improvement of 12.4 % to make the highest tribal payment to the state in 2023.  Bay Mills, the owners of Bay Mills Resort & Casino, followed with a 15% payment increase in 2023 over the 3.3% decline in 2022. Grand Traverse Band of Ottawa and Chippewa Indians and Little Traverse Bay Band of Ottawa Indians increased their payments by 5% and, respectively, 3.8%.

When comparing the total payments made from 2021 to 2023, Michigan tribal casinos decreased payments by 1.4% 2023 over 2022. In 2021, tribal payments amounted to around $31.5 million to testify about a 3.6% payment decline from 2021 to 2023 to raise the regulator’s concerns, as reported by Play Michigan.