Michigan iGaming Revenue Up by 24% in January

Michigan's online casino industry kicked off 2025 with a bang, posting a 24% year-over-year increase in January iGaming revenue, but the numbers took longer than expected to arrive.

A massive cyberattack on the Sault Ste. Marie Tribe of Chippewa Indians crippled operations, forcing the tribe’s land-based casino to remain closed since February 9th. The attack also disrupted access to crucial revenue data, delaying the release of Michigan’s January figures, which typically drop by the 18th of each month.

Despite the wait, the results were well worth it. Michigan joined New Jersey and Pennsylvania in reporting record-breaking online casino growth, with Pennsylvania iGaming revenue surging 40% and New Jersey climbing 21% compared to January 2024. However, Michigan set itself apart by not only posting a year-over-year increase but also logging a 1.7% month-over-month gain, outpacing both Pennsylvania and New Jersey, which saw slight declines from December.

For the fourth straight month, Michigan’s iGaming sector grew, reaching a total win of $248 million, up from $244 million in December and $226 million in November. The state also secured the second-highest iGaming revenue among legal U.S. markets, trailing only Pennsylvania at $268 million while surpassing New Jersey at $221 million, a figure that even outperformed Atlantic City's land-based casino revenue of $210 million.

Despite concerns that online gaming could cannibalize brick-and-mortar revenue, Detroit's three commercial casinos pulled in $104 million in January, an 11.6% increase over last year. This outpaced New Jersey and Pennsylvania, where land-based casino revenue grew just 2.6% and 3.5%, respectively, despite near-record iGaming numbers.

Michigan sportsbooks also shattered records in January, raking in over $85 million. This marked a significant change from December, when "player-friendly results" resulted in a meager 3.5% hold. Fast forward a month, and sportsbooks boosted their hold rate to 14.9%, leading to a massive revenue spike. The Detroit Lions’ playoff loss to the Washington Commanders played a significant role in the sportsbooks' success. With heavy bets placed on the Lions and the under, the house came out on top, especially as other NFL playoff results also favored the books.

Meanwhile, the story was quite different in Pennsylvania, where the Philadelphia Eagles' playoff success crushed sportsbooks statewide. Pennsylvania’s sports betting revenue dropped 26% for the month as local fans cashed in big ahead of the Eagles' eventual Super Bowl victory in February.

Michigan’s record iGaming month translated into $43 million in tax revenue for the state, far surpassing the $3 million generated from sports betting. Additionally, the three commercial casinos contributed another $8 million in gaming taxes, underscoring the strength of Michigan’s gaming industry across all sectors.

With Michigan continuing to show resilience and growth in both iGaming and land-based gaming, the state is proving itself as a major player in the rapidly expanding US online gambling market.