The Michigan iGaming licence cost starts with a $50,000 application fee, followed by a $100,000 licence fee when the licence is issued and $50,000 for each year after that. Those figures come straight from the Lawful Internet Gaming Act, and they cover the internet gaming operator licence only. The headline fees are the smallest part of the real budget. This guide sets out the full cost of market entry: operator and supplier fees, background investigation charges, independent lab testing, bonding, and the graduated tax that begins once you go live.
Key takeaways
- Regulator: Michigan Gaming Control Board (MGCB), part of the Michigan Department of Treasury
- Operator licence: $50,000 application fee, $100,000 at issuance, then $50,000 each year, on a five-year term
- Supplier licence: up to $5,000 application fee, $5,000 at issuance, then $2,500 each year
- Eligibility: only a Detroit commercial casino licensee or a class III tribal casino can hold an operator licence
- Tax: graduated from 20% to 28% on adjusted gross receipts, plus a 1.25% City of Detroit municipal fee for Detroit licensees
- Extra costs: the board bills the actual cost of the background investigation on top of the application fee
What the Michigan iGaming licence cost covers
The statutory operator fees are fixed and public. An initial application must include a $50,000 fee, which is non-refundable once the board starts work. If the Michigan iGaming licence is granted, the operator pays a $100,000 licence fee at issuance and then $50,000 for every year the licence stays active. The licence runs for five years before renewal.
These numbers apply to the internet gaming operator licence. They do not include the underlying casino or tribal licence, the platform, or the investigation charges. For that reason, the fee table below is the floor, not the full price of entry.
| Operator cost item | Amount | Timing |
|---|---|---|
| Application fee | $50,000 | With the application, non-refundable |
| Licence fee at issuance | $100,000 | Once the licence is granted |
| Annual fee | $50,000 | Each year after issuance |
| Licence term | 5 years | Renewable for further 5-year periods |
| Background investigation | Billed at actual cost | Assessed on top of the application fee |
The Michigan Gaming Control Board deposits every application and licence fee into the state internet gaming fund. The fee amounts are set by section 6 of the Lawful Internet Gaming Act, so they do not change with negotiation. You can read the operator fee provision on the Michigan Legislature site.
Why you cannot buy a Michigan iGaming licence on its own
This is the point most operators outside the United States miss. Michigan does not sell internet gaming operator licences to any applicant with the fee in hand. The board may issue an operator licence only to a company that already holds a Detroit commercial casino licence, or to a federally recognised tribe that runs class III gaming in a Michigan casino. Each casino licensee and each eligible tribe can hold at most one operator licence.
Michigan limits the market to fifteen operator licences across three commercial Detroit casinos and twelve tribal gaming operations. If you do not hold one of those underlying licences, you enter the market by partnering with a casino or tribe as their platform or brand. In practice, that commercial deal, not the state fee, is where most of the money and the negotiation sit. The partnership terms set the revenue share, the marketing spend, and who carries the compliance load. For an external brand, that partnership fee often dwarfs the state portion of the Michigan iGaming licence cost.
Operators weighing several US states often look at the New Jersey iGaming licence and the Pennsylvania iGaming licence alongside Michigan, because each state runs its own casino-partnership model with its own fee schedule.
The full cost of entry beyond the headline fees
The published fees tell you what the state charges to hold the licence. They do not tell you what it costs to get through the door, and this is where the true Michigan iGaming licence cost is decided. Three cost areas sit outside the fee table, and each one is billed separately.
Background investigation charges
The application fee is not the investigation cost. Section 6 allows the board to charge operators additional fees based on the actual cost of the licensure investigation, with no maximum limit. The board reviews the applicant and its key persons for character, reputation, integrity, business probity, and financial ability. It checks criminal records, prior licence suspensions, litigation, and business associations across every jurisdiction the applicant has worked in. The board sets out its process on the state regulator’s licensing pages, and the review is explained further in our guide to how the MGCB investigates applicants.
Independent lab testing and platform certification
Before a platform goes live, it has to pass independent lab testing against MGCB technical standards. The board uses approved testing laboratories, and it passes those testing costs on to the licensee. Testing covers the random number generator, game fairness, geolocation, and the responsible gaming controls. The cost depends on how many games and systems need certification, so it varies by operator. We handle this stage through our RNG and platform testing coordination, and the technical rulebook is set out in our overview of the MGCB internet gaming rules.
Bonding, insurance, and internal controls
A Michigan commercial casino licensee must post a $1 million bond payable to the state as part of its casino licence. The Lawful Internet Gaming Act does not add a separate iGaming bond on top of that, but the board still weighs whether an applicant can fund adequate liability and casualty insurance and a surety bond. On top of that, you carry the ongoing cost of internal controls, an audit function, KYC and AML systems, and monthly tax reporting. These are recurring operating costs, not one-off fees.
Supplier and platform provider licence costs
If you supply software, services, or a platform to a Michigan operator rather than run the brand yourself, you need an internet gaming supplier licence. Our Michigan supplier licence guide covers who needs one, the vendor thresholds, and the full application. The supplier fees are much lower than the operator fees. The application fee is set at up to $5,000. A supplier then pays a $5,000 licence fee at issuance and $2,500 for each year after that, on a five-year term.
A platform provider is a type of supplier, so it faces the heaviest technical scrutiny of any supplier category. Its systems go through the same lab testing described above before the board approves distribution. The supplier fee provision sits in section 8 of the Act. One point matters for budgeting: an operator and its platform provider need to agree in the contract who pays for the platform testing, because the state bills the licensee and the commercial deal decides who ultimately carries it.
| Supplier cost item | Amount |
|---|---|
| Application fee | Up to $5,000 |
| Licence fee at issuance | $5,000 |
| Annual fee | $2,500 |
| Licence term | 5 years |
How Michigan taxes internet gaming revenue
The licence fees are fixed, but the tax is the larger long-term cost. Michigan taxes adjusted gross receipts from internet gaming on a graduated scale that rises with monthly revenue. The rate runs from 20% at the lowest band to 28% at the top. Detroit casino licensees also pay a 1.25% municipal services fee to the City of Detroit on their internet gaming receipts.
| Monthly adjusted gross receipts | Tax rate |
|---|---|
| Under $4 million | 20% |
| $4 million to under $8 million | 22% |
| $8 million to under $10 million | 24% |
| $10 million to under $12 million | 26% |
| $12 million and above | 28% |
Tax is due monthly, by the tenth day of the following month. That means the tax cost is continuous, not annual, so cash flow planning matters from launch. Over a full year, this tax is usually the largest single line in the Michigan iGaming licence cost. For the full picture of how much operators pay and where Michigan iGaming tax revenue goes, see the market data in our revenue guide.
Michigan iGaming licence cost timeline and what drives it
Cost and timing move together because a longer review keeps your capital idle and increases your investigation bill. Supplier licences move faster than operator approvals. A full supplier licence typically takes about seven to nine months to process, while a provisional supplier licence can come through in two to four months so the supplier can start work sooner.
The board first establishes the parent company’s suitability, so operator approval depends heavily on whether the underlying casino or tribal licence is already in place. Platform testing then adds time on top, because a system cannot go live until the lab signs it off. If you budget only for the fees and not for the months of legal, compliance, and testing work, the real Michigan iGaming licence cost lands well above the statutory numbers.
Where Michigan applications run over budget
Applications rarely fail on the fee. They stall on suitability and on incomplete filings. The applicant carries the burden of proving suitability by clear and convincing evidence, so weak financial disclosure, unexplained ownership, or a history of regulatory non-compliance in another jurisdiction all extend the review. Every extra week of investigation adds to the actual-cost bill the board sends you.
Two other cost traps are common. First, operators underestimate the platform certification stage and treat it as a formality, when geolocation and responsible gaming failures routinely send systems back for retesting. Second, they overlook the ongoing compliance headcount: the internal controls, audit, and reporting duties that run every month after launch. Getting the corporate and compliance structure right at the start is cheaper than fixing it under a deficiency notice, which is why most new entrants use a gaming licence acquisition service to manage the filing and the correspondence.
Budgeting your Michigan market entry
The statutory Michigan iGaming licence cost is clear: $50,000 to apply, $100,000 at issuance, and $50,000 a year for an operator, with far lower fees for suppliers. The number that decides your budget is the one the statute does not print, which is the cost of the casino partnership, the investigation, the platform testing, and the graduated tax once you launch. To model your full cost of entry against your operating plan, contact DD Consultus at contact@licencegaming.com or +356 99408536 for a consultation.
Frequently asked questions
How much does a Michigan iGaming licence cost?
An internet gaming operator licence carries a $50,000 application fee, a $100,000 licence fee at issuance, and a $50,000 fee for each year after that, under the Lawful Internet Gaming Act. The licence is valid for five years. The board also bills the actual cost of the background investigation on top of the application fee.
Can you buy a Michigan iGaming licence without owning a casino?
No. The Michigan Gaming Control Board issues an internet gaming operator licence only to a company that holds a Detroit commercial casino licence or to a class III tribal casino in the state. Companies without one of those licences enter the market by partnering with a casino or tribe as their platform or brand.
How much is a Michigan internet gaming supplier licence?
The supplier application fee is set at up to $5,000. A supplier then pays a $5,000 licence fee when the licence is issued and $2,500 each year after that. The supplier licence runs for five years and is renewable.
Does the operator pay for the background investigation separately?
Yes. Section 6 of the Lawful Internet Gaming Act lets the board assess additional fees for the actual cost of the licensure investigation, and that charge is not capped for operators. The board adds this charge to the $50,000 application fee, and the review’s length and complexity determine the final amount.
How long does it take to get a Michigan internet gaming licence?
The board usually processes a full supplier licence in around seven to nine months and may grant a provisional supplier licence within two to four months. Operator approval depends on the underlying casino or tribal licence already being in place, followed by platform lab testing before the system can go live.
How much tax do Michigan iGaming operators pay?
Michigan taxes adjusted gross internet gaming receipts on a graduated scale from 20% to 28%, rising with monthly revenue. Detroit casino licensees also pay a 1.25% municipal services fee to the City of Detroit. Tax is remitted monthly, by the tenth day of the following month.
Is a bond required for a Michigan iGaming licence?
A Michigan commercial casino licensee posts a $1 million bond to the state as part of its casino licence. The Lawful Internet Gaming Act does not add a separate internet gaming bond, but the board still assesses whether an applicant can fund adequate insurance and a surety bond.
How many operators can hold a Michigan iGaming licence?
The market is capped at fifteen operator licences, one for each of the three Detroit commercial casinos and the twelve eligible tribal gaming operations. Each casino licensee or tribe can hold no more than one internet gaming operator licence.