In a remarkable display of growth, Michigan’s online gambling market has hit a new zenith, with gross revenue from sports betting and iGaming reaching an unprecedented $2.30 billion in 2023. This figure not only surpasses the previous year’s earnings by 18.3% but also markedly exceeds the $1.40 billion generated in the market’s inaugural year of 2021.
Breaking down the earnings, igaming contributed a staggering $1.90 billion, while sports betting brought in $420.4 million, both setting new annual records. The sports betting handle remained consistent at $4.60 billion. Adjusted gross receipts (AGR) from both sectors tallied up to $1.96 billion, an 18.8% increase from the prior year.
The state of Michigan received a significant tax boost from these operations, with total payments amounting to $369.8 million, including $354.0 million from igaming and $15.8 million from sports betting. Detroit’s casinos contributed $95.8 million in taxes, with tribal operators adding another $43.1 million.
December 2023 was particularly stellar, recording the highest monthly total ever at $181.4 million, driven predominantly by the igaming sector. The adjusted gross sports betting receipts and handle also hit record numbers in December, contributing to a monthly tax payment of $36.7 million.
Contrasting this online success, revenue from Detroit’s land-based casinos dipped slightly by 3.1% to $1.24bn in 2023. Despite a marginal increase in slots revenue, table games and retail sports betting revenues saw declines.
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The Michigan Gaming Control Board (MGCB) has taken active steps against illegal operators in the state, sending cease-and-desist letters to companies such as PredictionStrike Inc, VGW LuckyLand, and Stake.us for operating without licenses. This enforcement ensures the integrity of Michigan’s online gambling market and protects the interests of legal operators and players alike.
These developments underscore Michigan’s dynamic and evolving online gambling landscape, which has become a benchmark for other markets in the US. The state’s approach to regulation, taxation, and enforcement serves as a model for balancing industry growth with consumer protection and state revenue interests.
With a potent blend of lived experience and technical expertise, Stephen Naumov stands as a distinctive voice in Mr. Sweepstakes's content team. Born in the historic city of Sofia, Bulgaria, Stephen studied economics at New Bulgarian University and also enriched his expertise by becoming a software engineer at the renowned Telerik Academy.