Michigan Online Casino Revenue Hits New High in March

Spring may have arrived in the Mitten State, but that did not mean players were ready to return to brick-and-mortar casinos just yet. Instead, online wagering continued to grow. In March, Michigan reported a new monthly record of $260.5 million in adjusted gross revenue from its four-year-old online casinos and sportsbooks. Of that total, about $51 million will go to the state in taxes.

That figure marks a 21% increase from March 2024 and adds weight to the idea that iGaming is cutting into traditional casino business. Detroit’s three commercial land-based casinos saw their revenue drop by 4% year over year. New Jersey reported a similar trend, with online casino revenue up over 20% and land-based casinos in Atlantic City showing a modest decline.

The total could have been even higher if not for sportsbooks, which across the country have been facing several months of player friendly results. March joined October and December as another tough month for sportsbooks trying to stay profitable.

That said, sportsbooks still had plenty of action. Michigan’s total sports betting handle in March jumped 25% from February, despite that month featuring the Super Bowl. Players wagered just over $475 million in March, up from $380 million in February. Yet sportsbooks brought in only $14.6 million in adjusted gross revenue, which was a 45% decrease compared to March last year.

Even as record revenue numbers come in, Michigan’s online casino operators may soon face new challenges. Two Senate bills are moving through the legislature in Lansing, where some lawmakers are less focused on growing the industry and more focused on increasing the tax take.

To be fair, Michigan’s 8.4% tax rate on sports betting is relatively low compared to other states. Pennsylvania, for example, taxes sports betting revenue at 36% and applies a staggering 54% rate to online slot revenue. In Michigan, the highest rate currently paid is 28%, and that only applies to annual adjusted revenues over $12 million.

Despite the possible tax changes, there is little reason to doubt that iGaming will continue growing. Michigan’s 15 licensed online casinos are constantly improving their marketing, expanding their live dealer table games, and offering record setting progressive jackpots.

Just two months ago, DraftKings Casino made history by paying out the largest online jackpot ever in the United States. A player won $9.28 million on a 20 cent bet while playing Irish Pot Luck. That win was a record for both Michigan and the entire country. Now, DraftKings Michigan is closing in on another massive payout, with a new progressive jackpot approaching $10 million.

These kinds of jackpots, and the attention they bring, are helping drive growth not just in Michigan but in other legal online gaming states as well. It is hard to match the excitement of progressives tied to more than one thousand machines, where the jackpot meters are constantly rising.

Michigan’s March results show the strength and promise of a well run iGaming market. While retail casinos continue to struggle with foot traffic, the online gaming sector looks ready for another strong year of double digit growth, as long as lawmakers avoid placing too much tax pressure on the industry.