Michigan's online gambling industry has kicked off 2025 with exceptional performance, setting new records and continuing the impressive growth trajectory established throughout 2024. January's combined internet gaming (iGaming) and sports betting gross receipts reached an unprecedented $331.2 million, representing a substantial 25.4% increase compared to December's figures.
January's iGaming gross receipts totaled $248.2 million, establishing a new all-time high for the state and surpassing the previous record of $244.0 million set just a month earlier in December 2024. The sports betting segment also demonstrated remarkable performance with gross receipts of $83.0 million, a dramatic surge from December's $20.2 million.
When accounting for promotional spending, the adjusted gross receipts (AGR) for both segments combined reached $287.9 million in January. The breakdown shows $233.1 million from iGaming (a 6.1% increase from December) and $54.8 million from sports betting (an astonishing increase of $54.5 million compared to the previous month).
Year-over-year comparisons are even more impressive, with iGaming AGR growing by 42% and sports betting revenue increasing by $36 million compared to January 2024.
The competitive landscape remains relatively stable with three major operators dominating the Michigan market:
BetMGM and MGM Grand Detroit maintained their market-leading position in iGaming with January receipts of $66.5 million, up from $65.1 million in December and representing a 37% year-over-year increase.
FanDuel and MotorCity Casino followed closely in iGaming with January gross receipts of $62.9 million, reflecting a substantial 47% year-over-year rise. This partnership also secured the top position in online sports betting with a total handle of $218.3 million, generating gross receipts of $40.6 million—a 52% increase from the previous year.
DraftKings and the Bay Mills Indian Community maintained third place in iGaming with gross receipts of $42.2 million (up 16% year-over-year) while seeing their sports betting gross receipts double from $10.9 million to $22.1 million despite a decrease in handle.
One intriguing aspect of January's performance is that despite total internet sports betting handle decreasing by 7.1% to $555.2 million (compared to December's $597.7 million), gross receipts increased dramatically. This indicates significantly improved margins for operators in the sports betting segment during January.
The industry's growth continues to generate substantial tax revenue for Michigan:
Operators submitted $46.8 million in taxes and payments to the State of Michigan in January
$43.7 million from iGaming
$3.1 million from internet sports betting
The three Detroit casinos paid $12.8 million in wagering taxes and municipal services fees
$11.8 million from iGaming
$1.0 million from sports betting
Tribal operators contributed an additional $5.0 million in payments to governing bodies
January's strong performance follows an exceptional 2024, during which Michigan's online gambling revenue reached an all-time high of $2.9 billion—surpassing 2023's record by 23.8% and more than doubling the $1.90 billion generated during Michigan's first year of legal online gambling in 2021.
The iGaming segment alone topped $2.4 billion in 2024, a 26.3% increase from the previous year, while sports betting revenue reached a new high of $460.5 million, up 9.5% year-over-year.
As of January 2025, Michigan's online gambling market features 15 authorized commercial and tribal operators, with 12 offering internet sports betting and all 15 providing iGaming services. This robust competitive environment has helped drive innovation and consumer choice in the state.
The Michigan Gaming Control Board (MGCB) continues to ensure regulatory compliance, recently issuing a cease-and-desist order against offshore operator BetNow for violations of several state laws.
With January's record-setting performance, Michigan's online gambling industry appears poised for another strong year in 2025. The continued growth in iGaming particularly suggests that consumer adoption and engagement remain on an upward trajectory despite the market's increasing maturity.
The divergence between handle and revenue in sports betting will be an important trend to watch in the coming months, potentially indicating shifts in operator strategies or bettor behaviors.
As Michigan's online gambling market continues to evolve, it remains a dominant force in the national landscape, driving substantial tax revenue and economic activity throughout the state.