Michigan’s commercial and tribal internet gaming (iGaming) and sports betting operators reported a sharp decline in February 2025, following a record-breaking performance in January. The total combined revenue for both sectors reached $268.5 million, a decrease of 18.9% compared to the $331.2 million posted the previous month. However, the figures still represent a 22.9% year-over-year increase, highlighting the overall growth of the industry despite the temporary downturn.

A decrease in iGaming and sports betting performance:

Breaking down the numbers, iGaming remained the dominant contributor to Michigan’s gaming revenue, with operators generating $209.1 million in adjusted gross receipts (AGR), reflecting a 23.6% year-over-year increase. However, this was a 10.3% decline from the $248.2 million recorded in January. The sports betting segment, which had reached a significant peak earlier in the year, saw a sharp drop, with gross receipts falling by 50.2% from January. February’s sports betting revenue amounted to $46.0 million in gross receipts and $27.2 million in AGR.

This decline was attributed to several factors, including the natural slowdown in betting activity after the conclusion of the NFL season. The February total handle for internet sports betting was $379.8 million, marking a 31.6% decrease from January’s $555.2 million. The year-over-year comparison of the handle also shows a dip of 5.7%, underscoring the seasonal dip in betting activity.

Despite the decrease in overall revenue, Michigan’s gaming operators continued to make substantial contributions to state and local taxes. In total, $43.8 million was paid in taxes and fees during February, with the bulk—$42.3 million—coming from iGaming, and a smaller $1.5 million from internet sports betting. This marks a decline from January’s combined tax payments of $46.8 million.

Operators in Detroit also made significant payments. The three casinos in the city—MGM Grand Detroit, MotorCity Casino, and Greektown Casino—reported $12.1 million in combined taxes and municipal services fees. Of this, $11.5 million came from iGaming, and $640,249 was from sports betting.

Meanwhile, tribal operators paid a total of $4.7 million in taxes to governing bodies in February, showing a slight decrease from the previous month’s $5 million in payments.

Retail sports betting struggles in Detroit:

According to the Michigan Gaming Control Board’s (MGCB) press release, retail sports betting in Detroit saw continued struggles, with declines observed in both betting handle and adjusted gross receipts. MotorCity Casino led the retail betting market in February with a handle of $3.1 million and generated $566,300 in AGR. MGM Grand Detroit followed with a handle of $2.6 million and $202,100 in AGR. Greektown Casino, on the other hand, reported the lowest AGR at just $47,200 despite posting a handle of $2.6 million.

This trend highlights the growing competition from online sports betting platforms, which have continued to dominate the Michigan market. Despite this, the retail sportsbooks in Detroit are still part of the overall landscape, providing competition for online betting giants like FanDuel and DraftKings.

While February’s numbers showed a marked decrease compared to January, the year-over-year growth remained robust. iGaming revenue saw a notable increase of 23.6%, and sports betting AGR grew by $14.3 million compared to the same period last year. This indicates that, while February was weaker compared to the previous month, the overall trajectory of Michigan’s gaming industry remains positive.

The downturn in February is consistent with seasonal trends, as Michigan’s sports betting market typically experiences a decline after the conclusion of major events such as the NFL playoffs and the Super Bowl. However, the industry is expected to recover in March, fueled by the excitement surrounding March Madness and the NCAA basketball tournament.

Despite the February decline, the outlook for Michigan’s gaming market remains strong. The MGCB has actively addressed issues related to illegal offshore gambling, issuing cease-and-desist orders to five operators earlier in March. As the industry continues to expand, Michigan’s gaming sector is well-positioned to maintain its status as one of the largest regulated iGaming markets in the United States.

The next few months will likely see fluctuations as seasonal factors continue to influence betting behavior. Operators are expected to adjust their strategies to stabilize revenues and capitalize on high-profile events like March Madness.