Michigan Online Gambling Revenue in 2024

Michigan’s online gambling revenue has been amassing billions of dollars annually. Despite its online betting scene being legalized in 2019, the state is already an industry giant, generating around $4 billion since 2021.

While the Great Lake State’s online gambling industry is younger than other US states regarding legalization, MI has capitalized on its potential, using the billion-dollar market to boost its education sector.

With such impressive numbers, Michigan’s online gambling revenue is something to watch out for. Let’s delve into the details to uncover the growth behind this upcoming massive industry. 

Highlights of the Article

• Michigan online gambling revenue reached $3.784 billion in online casinos and $972 million in online sports betting since online gambling began in 2021. 
• In 2021, Michigan’s online gambling industry had a $1.40 billion revenue.
• The online gambling industry made a revenue value of $1.98 billion in 2022.
• MI’s total lottery sales in 2021 amounted to $5.05 billion. Only $241.8 million of it came from the online lottery. 
• Michigan Lottery had a total revenue of $4.9 billion in 2022. Of this, only $193.2 million came from the online lottery. 
• The total handle made by bettors in 2022 was $4.6 billion, 24% higher than in 2021, which was $3.7 billion. 
• Online lottery made the least revenue among the three gambling types. It made $241.8 million in 2021 and $193.2 million in 2022.
• Michigan currently holds the second-highest revenue in all of the US for July 2023.
• Michigan’s online casinos made the most significant revenue among the three gambling types, with $ 1.113 billion in 2021 and $1.5 billion in 2022.

Online Gambling Industry Earnings in the State of Michigan

Michigan’s online gambling industry is young compared to other states in the US. New Jersey, MI’s top competitor, started in 2013. 

The state launched its online gambling sites only in 2021, two years after its legalization in 2019. Below are the states’ lifetime online gambling revenue and taxes paid. 

Michigan now boasts a total revenue of $3.784 billion in online casinos and $972 million in sports betting. These two produced $717 million in taxes for the state.

In 2022, online casinos and sports betting generated the most revenue. However, industry analysts project 2023 to break the previous year’s records, with July 2023 numbers showing the revenue potential.

Comparing MI’s 2022 online sports betting figures to other US states, the state has done well. For example, Connecticut’s online sports betting scene generated only $145,306,247, 63.6% less than MI’s.

Side Note

While MI’s online gambling revenue has been thriving, it has yet to catch to New Jersey, reaching over $6.5 billion, almost double that of Michigan’s.

Let’s see how each online casino operator fared throughout the years. Listed below are their lifetime revenue and taxes paid since 2021.

Online Casinos: Lifetime Revenue and Tax Collected

The highest revenues among all online casino operators are made by:

• MGM Grand Detroit
• MotorCity
• Bay Mills

Side Note

Michigan has 15 online casino operators, and each virtual casino applies for an online gambling license, which costs around $20,000 to $120,000.

Online Sportsbooks: Lifetime Revenue and Tax Collected

Online sportsbooks allow people to bet on baseball, basketball, and boxing. Still, one of Michigan’s most popular betting options is fantasy sports.

Here is a list of the most popular Michigan fantasy sports operators: 

• Caesars
• BetMGM
• PointsBet
• BetRivers
• FanDuel

Check out each sportsbook’s lifetime data through their revenues and taxes below. 

Michigan’s online gambling industry is currently worth billions of dollars, a percentage of which is dedicated to boosting the state’s economy and its vital sectors.

Given the five existing online gambling platforms operating legally in MI, its unsurprising how profitable the state’s iGaming industry is. Most of the sites also support crypto gambling, ensuring fast transactions despite the volatile nature of the market.

The sections below shall analyze the facts and figures to determine the trajectory of the state’s online betting scene and see what the industry has accomplished throughout its years of legalization, exploring the following aspects:

• Online Casinos
• Online Sportsbooks
• Online Lottery

Michigan’s Online Gambling Revenues Timeline (2021-2023)

Only seven months into 2023, online casinos reached a total revenue of $1.088 billion. At the same time, online sports bets made $213 million.

Side Note

Online poker is one of the most popular online casino games worldwide. Experts foresee a market growth of about $283.42 Billion in 2032. 

Michigan’s online gambling revenue in 2022 and 2023 between January and July shows a massive difference. Online casinos only made $883 million last year, while online sportsbooks only made $188 million.

Take a look at the latest revenue distribution and taxes settled in 2023.

Monthly Revenue and Taxes Breakdown for 2023

Michigan made a total combined revenue of $176.1 million, 4% higher than June’s $169.3 million. The total combined income in July 2023 shows an 18.8% increase compared to last year’s (July 2022) $148.2 million.

MI state currently holds this month’s second-highest monthly income in the US. 

There was also a noted growth in Michigan’s Adjusted Gross Revenue (AGR) in July, which totaled $154.6 million. This figure is 17.8% higher than last year’s July and 5.8% above this year’s June.

June made a total combined revenue of $169.3 million for online casinos and sportsbooks. Online casinos made $151.0 million, while sports betting receipts were $18.3 million.

This total revenue is a 9.3% decrease compared to May 2023. But this also reflects a 21.2% increase in year-on-year growth.

For May, Michigan’s online gambling industry made a total combined revenue of $185.8 million. This amount is a 5.1% increase compared to the previous month.

On AGR, commercial and tribal operators showed a combined $157.5 million in revenue. Online casinos have an AGR of $135.5 million, while sports betting made $22.0 million.

Michigan made a combined revenue of $195.7 million for April. This data shows a 9.6% decrease compared to March results. However, this is an 18% increase on a year-on-year comparison.

The total AGR for April amounted to $157.5 million. Online casinos had a share of $135.5 million, and online sportsbooks had $22 million.

In March 2023, the total combined revenue was $216.4 million, a 26.7% increase compared to February’s total revenue. This figure was also a 28.67% increase compared to March 2022’s income.

The AGR for March amounted to $186.09 million. After promotional deductions, the online casinos made $154.65, while online sportsbooks made $31.44 million.

Michigan reported around $170.83 million for February 2023, an 8.8% decrease compared to January 2023. But, this also shows an increase of 16.16% compared to February of the previous year.

The combined AGR for February was $141.73 million, showing a 9.2% decrease compared to January’s AGR.

Michigan opened 2023 with a $187.3 million combined revenue for January. However, this is a fall of 7.1% compared to December 2021, which made a revenue of $201.6 million.

The revenue for the first month is also an 18.3% increase compared to January 2022.

Michigan’s online gambling scene made the most revenue in the following months: 

Meanwhile, Michigan online casinos won $0.53 daily in February 2023. It nearly surpassed the leading state of New Jersey with $0.55 per resident daily in iGaming Revenue. 

Behind Michigan’s $0.53 is Pennsylvania with $0.45. Next is Connecticut with $0.28, West Virginia with $0.26, and Delaware with $0.04.

The following operators also made the highest revenue for online casinos throughout the year. 

Online casino games like blackjack, slot machines, poker, and roulette are among the most popular in Michigan’s Online Casinos.

Here are the top-performing online sportsbooks and their total revenue. 

Michigan’s sports betting handle decreased to $208 million in July. This record is the lowest in two years. 

Michigan’s online operators saw their wagers drop by 11.9% compared to June. This figure is relatively high compared to physical books, only showing a drop of 2.4% in their bets.

Shown below are the generated revenue and percentage decline of Michigan’s online operators in 2023:

• Fan Duel: $73.4 million (📉 0.8%)
• DraftKings: $55.3 million (📉 15.3%)
• BetMGM: $32.9 million (📉 21.2%)

Quick Tip

Online Casinos such as BetMGM, Caesars Palace, and FanDuel are safe and trustworthy casinos.They are licensed operators regulated by the Michigan Gaming Control Board, using the latest SSL encryptions to keep their gamblers’ data safe.

Michigan’s online gambling industry is becoming an unstoppable market in the United States. Let’s delve into its first year of operation in 2021 and see how it all began. 

2022: The Significant Growth of Michigan’s Online Gambling

The Michigan Gaming Control Board reported a total revenue of almost $2 billion for 2022. Of this, $1.58 billion came from online casinos and $399 million from online sportsbooks. 

The highest revenue recorded for online casinos was in December, with $152 million. Meanwhile, it was in October, with an income of 49.22 million for online sportsbooks. 

Michigan also received a combined $302 million worth of taxes. $289 million came from online casinos, and $13 million was from online sportsbooks. 

Online Casino Revenue and Taxes 2022

Online casinos paid $289 million in taxes in 2022, a 35.6% increase from last year’s. Operators paid the highest tax in December and the lowest during January.

Below is a comprehensive table of Michigan sports gambling tax and revenue in 2022. 

Online Sportsbook Revenue and Taxes 2022

Online sportsbooks contributed the second highest tax in 2022, totaling $13 million. This data is a 61.6% increase from the tax paid by online sportsbooks in 2021. 

Official reports also showed the total handle made by bettors that year was $4.6 billion. This figure significantly increased from the previous year’s $3.7 billion.

Fun Fact

Sports betting grew and popularized worldwide in the 19th century, with the United States being one of the 3 locations that capitalized on its potential.

Online Lottery 2022

* No data for the total tax made by online lotteries alone. 

MI’s lottery market for 2022 had a total revenue of $4.9 billion. Of this, only $193.2 million came from the online lottery, about 4% of the overall lottery revenue.

The lottery gave away $3.1 billion in prize winnings and reported $35.4 million of unclaimed winnings. The unclaimed prizes went straight to the School Aid Funds.

Michigan’s online gambling scene in 2022 made the most revenue in the following months: 

The following operators for online casinos also made the highest revenue the entire year.

As for online sportsbooks, the following operators rank as the highest revenue producer in 2022.

Online Casinos made the highest gross revenue among the three gambling types. Michigan’s online gaming revenue amounted to $1.5 billion, $469 million higher than in 2021. 

The second-highest revenue for 2022 was in online sportsbooks, with $399 million. This revenue is $107 million higher than 2021’s $292 million.

The second-year operation of Michigan’s online gambling industry outperformed its preceding year. With 2023 almost exceeding 2022’s record, the industry will expect a new record as the year ends.

2021: Michigan’s Online Gambling Industry Emerges

Gov. Gretchen Whitner signed the legalization of online gambling in Michigan in 2019. However, it was only in January 2021 that online casinos and sportsbooks officially launched in the state. 

Regulators needed time to craft rules to regulate these new online platforms. Further delays happened when the COVID-19 pandemic struck. 

Michigan only had 18 online casinos and sportsbooks when it launched in 2021. Currently, the state hosts 15 online casinos and 14 sportsbooks.

MI’s online gambling industry for 2021 ended with a $1.4 billion revenue. Of this, $1.11 billion came from online casinos and $292 million from online sportsbooks.

Side Note

There are currently 4,792 global online casinos in 2023. Europe holds the highest record with 3,211 businesses.

The state’s online betting income peaked in November, with a total combined revenue of $161.7 million, while it saw its lowest revenue in January, with $42.6 million. 

Casino and sports betting operators paid $208.9 million to Michigan. The highest paid tax for online casinos was in December, with $22 million. Online sportsbook operators settled their highest tax for $1.6 million in November.

See the monthly breakdown of Michigan’s online casino revenue and taxes in 2021 below. 

Online Casino Revenue and Taxes 2021

In Michigan, online casinos and poker sites must pay 20%-28% tax. The sites with less than $4 million gross revenue give 20% tax. Those with gross incomes over $12 million have a 28% tax. 

These numbers are high compared to New Jersey’s. NJ’s online sportsbooks are taxed only 14.25%. There is also a 15% tax rate for internet gaming gross revenue.

Here are the revenue and tax breakdowns by the Michigan online sportsbooks in 2021. 

Online Sportsbook Revenue and Taxes 2021

Michigan’s online sportsbooks wrote off 62% of their GGR in promotion. Due to this, the operators were at a loss in January-February 2021. Meanwhile, online casinos only deducted 10% of their gross income.

The least famous among the three online gambling types is the online lottery. 

Online Lottery 2021

* No data for the total tax made by online lotteries alone. 

The lottery in 2021 made a total revenue of $5.05 billion. Only $241.8 million of it came from the online lottery. The online lottery’s revenue is only 4.78% of the total lottery revenue. 

In Michigan, 35% of every dollar spent on the lottery benefits the school system. Since 1972, the total school aid fund given by the lottery amounts to $22 billion. 

Among the three gambling types, online casinos made the highest revenue. It made $1.113 billion in 2021.  

Sportsbooks placed second among the top contributors to online gambling revenue in 2021. They amassed a total of $292.2 million in revenue.

Side Note

There were over $27.6 million unclaimed prizes from the Michigan Lottery in 2017, amounting to $2 billion worth of lottery prizes that still needed to be redeemed in America.

Michigan’s online gambling scene in 2021 made the most revenue in the following months: 

The online casinos peaked in December 2021, having almost $122 million in revenue, while online sportsbook reached their highest income in November of the same year.

Online casinos that made the highest revenues in the following months:

Online Sportsbooks make revenue less than online casinos. However, they still contribute a hefty sum to Michigan’s gambling revenue. 

Take a look at the online sportsbooks that peaked the most in 2021. 

Despite the setbacks from the pandemic, Michigan’s online gambling revenue made a strong start. Now, let’s explore below how the industry performed during its second year in 2022.  

Bottomline

Michigan’s online gambling industry has grown tremendously since its legalization in 2019. The numbers may fluctuate monthly, but year-end revenues show steady growth.

MI has much to look forward to concerning their gambling scene. With good intentions in improving their education sector, Michigan’s commendable initiative is an example other states might imitate.

With continued patronage by its bettors, The Great Lake State’s market has the potential to become among America’s biggest gambling states, a win-win situation for both the MI and its citizens.