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Tax revenue from online gambling would be divided four ways, Iden said. Five percent would go toward school aid, with 5 percent for transportation, 55 percent to the city of Detroit and 45 percent to the Internet Gaming Fund, which will administer the online gambling program.
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Pixies of the Forest An analysis of the House bills from the nonpartisan House Fiscal Agency says state and local governments likely would collect less in gambling taxes. That's mainly because casinos would have an incentive to promote online gambling — with a lower proposed tax rate — at the expense of brick-and-mortar wagering, which is taxed at a higher rate. The report notes that the fiscal impact would depend on whether internet gambling would have a "substitution, neutral or stimulative effect" on other forms of gambling, and it adds that online gambling presumably would reduce Lottery sales — mainly by diverting participants from the iLottery system.