Michigan just celebrated its second anniversary of the legalization of online casinos. During its first 24 months of operation, Michigan reported a record-breaking $2.7 billion in online casino revenue. As the online casino gaming industry is growing across the country, Michigan is another indication that this industry is expanding.
Not only has the legalization of online casinos proved to be profitable for operators, but it has also shown to be widely beneficial for state tax revenue. The Great Lake state saw over $675 million generated in tax revenue from online gaming in the past two years. Some would argue this reason alone is enough to legalize online gambling because it has demonstrated to be a consistent source of revenue for the state. Regulated online wagering also gives players a safe and regulated option in their state to steer them away from unregulated, offshore websites.
Michigan’s online sports wagering follows a similar trend. The state took on the challenge of launching the legalization of online casinos and sports betting on the same day. Since then, sports betting has totaled $8.21 billion in the online handle. Generating $31.8 million in state and city tax revenue over the past two years.
Comparing Michigan to Other States
Compared to other states that have legalized online casino gaming, Michigan’s revenue of $2.7 billion within the first two years is record-breaking. Here’s a look at what a few other states totaled in their first two years:
- Delaware: $3.78 million
- New Jersey: $253 million
- West Virginia: $113 million
- Pennsylvania: $1.37 billion
Although, Michigan is still just behind New Jersey and Pennsylvania’s revenue totals from 2021 and 2022.
- New Jersey: $3.03 billion
- Pennsylvania: $2.96 billion
BetMGM Wiping the Floor in Revenue Earnings
BetMGM has been running the show when it comes to online casino gaming in Michigan. BetMGM online casino is leading the charts with just over $1 billion in revenue over two years. The operator accounts for 37.3% of the $2.7 billion total online casino revenue since their launch in the Great Lake State.
BetMGM even has its two closest competitors beat when it comes to their combined total revenue. FanDuel and DraftKings Casino MI have earned $432.9 million in combined total revenue. With $2.7 billion in total revenue, BetMGM has them beaten by a long shot.
The Growth of the Industry in Michigan
Upon the arrival of online gaming on January 22, 2021, in Michigan, the state had a total of eight online operators available to customers. Since then, seven more have been added, bringing the total to 14.
The second year (2022) is where Michigan noticed the most growth. The state broke monthly revenue earnings in March, April, October, and November, and ended the year with a record of $152.8 million in December.
Here’s a breakdown of the numbers and growth Michigan has seen over the past two years:
Michigan online casino revenue:
- 2021 total revenue: $1.11 billion
- 2022 total revenue: $1.58 billion
- Total 2-year revenue: $2.7 billion
Michigan online casino state taxes:
- 2021 total state taxes: $201.7 million
- 2022 total state taxes: $289.2 million
- Total 2-year state taxes: $490.9 million
The state reported a 41% increase last year in total gross receipts from 2021.
Growth Likely to Continue
Michigan’s online casino market will likely continue to grow, at least slightly. In April of 2022, Michigan was accepted in Multi-State Internet Gaming Agreement. This was the start of interstate poker play for Michigan fans. This allows players to compete against others in New Jersey, Nevada, and Delaware. Interstate poker went live in the state on January 1st, with one operator, PokerStars.
Mac Daniel is a writer for PlayOnlineCasino and PlayOnlineSportsBetting. He has experience writing about a wide variety of topics, including healthcare, tourism, non-profit organizations, and most recently casino and sportsbetting news. To check out more of his work, visit: playonlinemichigan.com