Michigan Crosses $5 Billion In Revenue To Cement Status As iGaming Powerhouse

Written By Corey Sharp on April 23, 2024
Large orange and yellow poker chip with the Michigan outline on it, a large pile of money and the large yellow and orange words

March marked a huge milestone in Michigan, as online casinos achieved $5 billion in lifetime revenue. It became the third state to cross that threshold, joining New Jersey and Pennsylvania.

The Great Lakes State has come a long way since the launch of online casinos back in 2021. MI online casino revenue has grown significantly over the years, making it one of the leading iGaming markets in the US.

Michigan’s online gaming regulations and competitive landscape appear to have set up its iGaming industry for sustained growth.

Michigan joins PA and NJ in $5 billion iGaming revenue club

iGaming operators in Michigan recently notched a state record, producing $215.3 million in gross revenue for the month of March. That total put lifetime earnings over the $5 billion mark.

Michigan online casinos have generated $5.2 billion in overall revenue since January 2021, putting the state in third out of the seven states with legal platforms.

The state launched with nine operators in January 2021 and currently has 15 iCasino sites. Yearly revenue has grown dramatically over the years:

  • 2021: $1.11 billion
  • 2022: $1.58 billion
  • 2023: $1.92 billion

After March’s record, Michigan’s online operators are on pace to record $2.34 billion in gross gaming revenue this year.

Competition drives better offerings and revenue

A main reason for sustained industry growth in Michigan is tight competition at the top. BetMGM, FanDuel and DraftKings have been competing for dominance in this lucrative market since the beginning. That often translates to aggressive promo spend and competitive game offerings for players.

The following five brands lead the state in lifetime earnings. Together, these five account for 80.1% of lifetime market share:

  • BetMGM: $1.75 billion
  • FanDuel $997.7 million
  • DraftKings: $910.8 million
  • BetRivers: $329.1 million
  • Golden Nugget: $224 million

Despite BetMGM sitting atop the lifetime revenue standings, FanDuel recently made waves in becoming the new leading iGaming operator in the Mitten State.

FanDuel helping to lift iGaming markets nationwide

In March, FanDuel online casino Michigan produced $57.6 million in revenue to top BetMGM for the first time. BetMGM online casino led the market for 39 straight months.

March was the first month that FanDuel’s promo spend was above $5 million. FanDuel outspent BetMGM for the month in terms of promos $5.8 million to $4.6 million.

It’s clear that FanDuel’s investment in iGaming is a major industry driver, and not just in Michigan. According to Alex Weldon at PlayUSA:

“FanDuel-operated casino sites across all states increased their monthly total by $70 million from March 2023 to March 2024. That accounts for almost half of the total annual growth for the US market over that period.”

Expanded live dealer offerings another source of growth

iGaming platforms offer thousands of slots for players, along with table games, including live dealer games.

Evolution Gaming, which powers live dealer games in Michigan, entered the state in 2021 and have increased offerings ever since. Over the years, Evolution has expanded offerings with popular games such as Lightning Roulette, Live Dealer Craps and more.

Slot offerings are another area where operators continually expand and innovate. Players in Michigan now have access to more than 10,000 Michigan online slots. And that number is growing all the time.

Michigan ranks second in online casino market, behind Pennsylvania

The Great Lakes State has shown impressive growth in the iGaming space, considering legal operators launched after New Jersey and Pennsylvania.

New Jersey was the first state to have online casinos in 2013 and Pennsylvania followed suit in 2019. Michigan did not enter the game until 2021.

Despite that, Michigan ranks as the second-largest US online casino market in terms of revenue. It crossed the $200 million mark for monthly revenue in March for the first time ever.

Michigan squeaked past New Jersey in 2023 gross revenue, producing $1.92 billion, about $115,000 more than the Garden State. Pennsylvania is the leading market with $2.11 billion in 2023 revenue. PA also leads in monthly revenue, outpacing Michigan in March with $233.1 million in GGR.

So far in 2024 gross iGaming revenue, Michigan is cementing its status as the No. 2 largest market:

  • Pennsylvania: $637.7 million
  • Michigan: $585 million
  • New Jersey: $562.8 million

Can Michigan catch PA?

It appears that the Pennsylvania market is humming along, which is going to make it tough for Michigan to catch. However, it’s not impossible.

Michigan is a desirable market for operators with the second-biggest revenue pool and modest tax rates: 20% tax for gross revenue less than $4 million and 28% tax for gross revenue greater than $12 million. Additionally, Michigan’s iCasino market is capped at 15 licenses with only one brand allowed for each.

That cap could limit the market from overtaking PA, a state that has no limit on number of skins. However, it could also be another selling point for new operators looking for an in-road to iGaming in the US.

Hard Rock is now positioning to enter MI, after acquiring the departed 888 brand’s assets. Hard Rock is a formidable operator, recording $9 million in New Jersey revenue last month.

Caesars is another player looking to expand in Michigan. The casino company is acquiring the WynnBet online gaming license and plans to introduce another Caesars-owned skin to the market.

The Great Lakes State, even with a maximum of 15 operators, has grown into one of the top markets in the US and shows no signs of slowing down.

Photo by PlayMichigan
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Corey Sharp

Corey Sharp joined Catena Media in 2022 and is the go-to expert for Michigan gambling. Born and raised in Philadelphia, PA, he previously worked for the Philadelphia Inquirer and NBC Sports Philadelphia as a sports journalist and content producer. In Corey’s role as Lead Writer for PlayMichigan, he works alongside a talented team of expert journalists and analysts to bring you the most comprehensive and accurate coverage of gambling news in Michigan. Corey’s contacts around the industry makes him a trusted source. Corey produces daily stories and features about the gambling space. Corey graduated from Holy Family University in Philadelphia with a bachelor’s degree in sports management.

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