Michigan's Online Gambling Success: Key Numbers from 2023

Michigan: The Largest Online Gambling Market in the US for 2023

By Jane Shaw Senior Editor Updated: 09/06/2024

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We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.

The Largest Online Gambling Market

Michigan’s Journey to the Top

Michigan’s journey to becoming the top online gambling market began with the legalization of online gambling in January 2021. Since then, the market has experienced exponential growth. According to the American Gaming Association, in its first year, Michigan gamblers wagered $1.1 billion through online platforms. This figure surged to $1.6 billion in 2022, culminating in $1.92 billion in 2023.

The state’s regulatory environment, managed by the Michigan Gaming Control Board, has fostered this growth. In an interview with the Michigan Gaming Newsletter, Henry Williams, Executive Director of the MGCB, shared that the results have exceeded expectations:

Internet casino gaming and internet sports betting saw great successes since Michigan launched both forms of gaming in January 2021. The level of interest and resulting revenue have far exceeded what the Michigan Legislature projected when the gaming bills were under consideration in 2019.

State-by-State Comparison

The state’s dominance in online gambling is evident when compared to other jurisdictions. While Michigan and New Jersey both reported $1.92 billion in online gambling revenue for 2023, the Wolverine State narrowly outperformed the Garden State by $115,500, securing its position as the top market.

Pennsylvania also made the top three by generating $1.74 billion. Despite the difference in total revenue, all these states have shown robust growth and have been instrumental in driving the overall expansion of the US online gambling sector. Experts attribute Michigan’s edge to its strong adoption of various online casino games.

The Economic Impact of Online Gambling in Michigan

The explosion of online gambling in Michigan has had significant economic benefits for the state. In 2023, $354 million in tax revenue was collected from online gambling alone, far exceeding initial estimates of $30 million to $40 million. This revenue has been a blessing for the state’s School Aid Fund, which supports K-12 public education.

Traditional Casinos Face Challenges

Despite the success of online gambling, Michigan’s physical casinos have faced challenges. In 2023, the state saw a 2.7% decline in traditional casino gross gaming revenue, one of the largest decreases in the country. This trend reflects a broader shift in consumer behavior as more gamblers prefer the convenience and accessibility of online platforms.

The Broader Gambling Landscape

Michigan’s success is part of a larger trend in the US gambling industry. In 2023, the total revenue from land-based casino games, sports betting, and iGaming reached a record $66.52 billion, marking the third consecutive year of growth. The iGaming industry alone grew by 22.9% from 2022 to $6.17 billion, with Michigan contributing significantly to this expansion.

However, traditional gambling markets like the Las Vegas Strip remain dominant, with $8.833 billion in revenue for 2023. Despite Michigan’s success in online gambling, it ranks fifth in overall gambling revenue, following Nevada, New Jersey, Pennsylvania, and New York.

Future Outlook

As Michigan continues to lead the online gambling market, the state’s revenue from this sector is expected to grow further. Industry experts predict that tax revenues could exceed half a billion dollars by 2026. This growth will likely drive further investments in online gambling platforms and technologies, solidifying Michigan’s position as a leader in the industry.