Michigan’s online sports betting and igaming revenue reached an all-time high of $2.30 billion in 2023, surpassing the previous record set in 2022 and the initial year of legal betting in 2021. The figures reported include revenue from licensed commercial and tribal igaming operators in the state.
Out of the total revenue, $1.90 billion came from igaming and $420.4 million from gross sports betting receipts. Adjusted gross receipts from both sectors after promotional deductions amounted to $1.96 billion, representing an 18.8% increase from the previous year. Of this, igaming accounted for $1.73 billion and adjusted gross sports betting receipts totaled $223.5 million.
Operators paid a total of $369.8 million in taxes, with Detroit’s three casinos contributing $95.8 million and tribal operators paying $43.1 million in taxes and fees to governing bodies.
In addition to the record annual revenue, Michigan saw a peak in December with total gross online gambling revenue hitting $181.4 million, the highest monthly total to date. This growth was driven by both the igaming and sports betting sectors, which also reached new monthly highs for gross revenue and handle.
However, the online gambling results follow a decline in revenue from land-based casino gaming in Michigan, specifically in the Detroit area. Revenue from the three commercial casinos in the city fell 3.1% in 2023, with declines reported in table games and sports betting.
Furthermore, the Michigan Gaming Control Board took action against three online gaming companies operating illegally in the state, issuing cease-and-desist letters to PredictionStrike Inc, VGW LuckyLand, and Sweepstakes Limited (Stake.us). These operators were offering online gaming in Michigan without the necessary licenses, in violation of state laws.
The MGCB executive director, Henry Williams, emphasized the importance of adhering to gambling regulations, stating that illegal gambling operations are not welcome in Michigan. He expressed concern for residents who may be vulnerable to unregulated sites and emphasized the importance of supporting regulated, legal gambling establishments that contribute to communities through taxes.