City Wagering Tax: 10.9% of casinos' Net Win*

Application Fees: $0.05 million x 3 casinos ** One Time Fee

Licensing Fees: $0.025 million x 3 casinos (Payable Annually)

Municipal Services Fee: $4 million x 3 casinos (Payable Annually)

Effective Gaming-Related Tax Rate (State & City), based on $900 million Net Win*...19%

Note:

* Net Win (sometimes referred to as Adjusted Gross Receipts) is a casino's gross receipts, less winnings paid to wagerers. From the Net Win, a casino pays fees and taxes employee wages and benefits, and other costs related to operating a casino. The three commercial casinos in the City of Detroit have met the criteria for the P.A. 306 tax roll back.

** Additional costs for investigations may be incurred

*** Adjusted annually by Detroit Consumer Price Index. No single casino's share shall exceed 1/3 of the total Annual State Services Fee

Note A: State/City Wagering Tax

The State/City Wagering Tax totals 19% of the three casinos' Net Win. The entire State Wagering Tax (8.1% of the casinos' Net Win) is deposited into the School Aid Fund for statewide K-12 classroom education. The City Wagering Tax (10.9% of the casinos' Net Win) may be used by the City of Detroit for the hiring, training, and deployment of street patrol officers; neighborhood and downtown economic development programs designed to create local jobs; public safety programs such as emergency medical services, fire department programs, and street lighting; anti-gang and youth development programs; other programs that are designed to contribute to the improvement of the quality of life in the City; relief to the taxpayers of the City from one or more taxes or fees imposed by the City; the costs of capital improvements; and road repairs and improvements.