Michigan’s online gambling industry hit unprecedented heights in 2024, as commercial and tribal operators collectively generated a remarkable $2.9 billion in gross receipts from iGaming and sports betting. This figure marks a 23.8% increase from the previous year, further cementing Michigan’s status as a major hub for online gaming. Notably, iGaming was the clear frontrunner, accounting for $2.4 billion of the total, while sports betting contributed $460.5 million.

Record-breaking growth in 2024:

While the state experienced a slight month-to-month dip in December, the overall growth trajectory for 2024 remains strong. December’s gross receipts for internet gaming amounted to $244.0 million, the highest monthly total recorded to date. This surpassed the previous high of $226.0 million in November 2024. On the other hand, sports betting receipts saw a significant decline, dropping to just $20.2 million from $58.3 million in November. The stark contrast between iGaming’s success and sports betting’s slump highlights an ongoing shift in consumer preferences.

The December performance breakdown offers a closer look at the underlying trends. In terms of adjusted gross receipts (AGR), which account for promotional expenses and other business deductions, iGaming achieved an 8.0% increase, totaling $219.6 million. This marks a continued upward momentum for the state’s iGaming sector, which has witnessed steady expansion since its legalization.

However, the situation for sports betting was markedly different. Sports betting AGR plunged by a staggering 99.3%, falling to just $267,881. The decline in sports betting revenues aligns with a broader national trend, where favorable sports outcomes have led to reduced betting volumes. The December handle, or total amount wagered, for internet sports betting dropped by 8.1%, from $650.2 million in November to $597.7 million.

The downturn in sports betting was not only reflected in the receipts but also in the taxes and payments generated from the sector. In December, operators paid a total of $46.1 million in taxes and fees to the state of Michigan. Of this, $45.9 million came from iGaming, while internet sports betting accounted for just $214,291. The City of Detroit, home to three of Michigan’s largest commercial casinos, received $11.4 million in taxes, with the entirety of this amount stemming from iGaming, as sports betting from these casinos generated negative AGR and thus no tax liability.

Michigan’s impressive annual revenue and growth in online gaming:

Looking beyond the monthly data, Michigan’s 2024 performance paints an even more impressive picture. The state’s total handle for the year across iGaming and sports betting hit a substantial $5.3 billion, marking a 15.2% increase from 2023. The combination of increased player engagement and a growing number of authorized operators contributed to this surge. Overall, adjusted gross receipts for online gaming were up 22.3% year-on-year, reaching $2.4 billion, with iGaming gross receipts alone topping $2.2 billion, up by 26.3%.

The state’s online gaming landscape continues to be dominated by a few major players. BetMGM and MGM Grand Detroit, in particular, posted record results, generating $640.1 million in gross receipts and $576.9 million in adjusted receipts. FanDuel and MotorCity Casino were close behind, reporting $614.6 million in gross receipts. Meanwhile, DraftKings and the Bay Mills Indian Community rounded out the top three with $454.7 million in gross receipts.

Despite sports betting’s struggles in December, it still achieved a yearly gross receipt total of $460.5 million in 2024, marking a 9.5% increase. Adjusted gross receipts from sports betting for the year, however, were down by 13.0% to $194.4 million. This decline further underscores the volatility of the sports betting market, especially in light of fluctuating outcomes in high-profile events.

As Michigan Gaming Control Board reports, December 2024 capped off a record-breaking year for Michigan’s online gambling industry, with gross receipts for the month reaching $264.2 million. Although this figure represents a 7.1% decrease from November, it still signifies a year-on-year increase of 9.0%. The month’s adjusted gross receipts came in at $219.9 million, reflecting a solid 10.8% increase from December 2023 but an 8.5% dip from the previous month.

At the same time, December’s figures revealed the growing dominance of iGaming. Gross receipts for the iGaming segment hit $244.0 million, surpassing previous records. However, the sharp drop in sports betting receipts, down 66.9% from December 2023, points to a troubling trend for the sector. Despite this, operators continue to contribute significantly to Michigan’s economy. The state collected $466.1 million in taxes and payments from both iGaming and sports betting throughout 2024, with iGaming accounting for the bulk of the revenue at $451.4 million.

Tribal operators, too, contributed to the state’s economic growth, with $55.3 million in payments to governing bodies in 2024. As Michigan’s online gaming market expands, the influence of tribal operators continues to play a key role in maintaining the sector’s dynamic growth.