According to the latest figures, 2024 was a milestone year for Michigan and its online casino scene. The total revenue from iGaming came in at an impressive $2.4 billion. Other areas, like sports betting, also contributed, but their figures were in the millions rather than billions. In this article, we’ll talk about what is behind the success of this industry in Michigan and how this example could show other states how legalized iGaming can be a major driver of economy.
Online Casino Growth in Michigan
In December 2019, Michigan officially legalized online gambling with the Lawful Internet Gaming Act. The first online casinos and sportsbooks went live just over a year later. Now, Michigan is one of the few US states that offers all gambling options online.
All online gambling is overseen by the Michigan Gaming Control Board (MGCB). This organization deals with licensing, compliance, and responsible gaming. A part of the rules is that online operators must have partnerships with land-based casinos, so this has also helped sustain the traditional casino industry.
Since the introduction of online gambling, and online casinos especially, there has been record-breaking revenue. Operators here are generating hundreds of millions of dollars each month. The economic benefits for the state are huge—it means significant revenue from tax. This then goes into funding education, infrastructure, and other local government projects. The legislation also created more jobs, largely tech positions and customer service roles.
The success of the launch of online casinos in Michigan is a potential precedent for other states. It proves that if you have a well-regulated iGaming sector, it can benefit the rest of the state and its population.
What’s Behind the Success of Online Casinos Here?
Things have worked very well for Michigan in its launch of online casinos. The market here is one of the most successful in the US. This is largely down to
- Strong regulations
- Strategic partnerships
- Consumer demand
The regulatory structure here is good. The state prioritizes security, fair play, and responsible gaming. Licensing is strict and the MGCB ensures access to safe and trustworthy platforms. There are mandatory audits and compliance checks.
The requirement for a land-based partnership is a huge factor in its success. This creates a mutually beneficial relationship. Casinos like MGM Grand Detroit, MotorCity Casino, and Greektown Casino have joined forces with iGaming brands, and so online gaming and physical gaming have both benefited.
Michigan State recognized that more people seek out entertainment on mobile devices. The online casinos here have focused on providing convenient and accessible mobile options. Many platforms offer apps and mobile-optimized websites so users can enjoy playing from anywhere in the state. The shift to mobile gaming is likely playing a big part in the record revenue numbers.
Major Operators in Michigan
We can’t talk about the success of Michigan’s online casino scene without mentioning the biggest successes. Here are the top online casinos in Michigan currently
- BetMGM: There are over 1,600 games, a low minimum deposit of $10, and a generous welcome bonus (100% up to $1,000 + $25 on the house)
- Caesars Palace: 700+ games, a $10 minimum deposit, and a welcome bonus of 100% up to $2,500
- Bet Rivers: Over 1,600 games, $10 minimum deposit, and up to $500 casino losses back
Michigan: Setting the Stage for Other States
The success of online casinos in Michigan could help other states looking to legalize operations. The $466.1 million in tax contributions show other jurisdictions how iGaming can help bring money into a state and maintain a healthier economy.
Other states that are slightly behind Michigan could learn from what Michigan did, including New Hampshire, Illinois, Maryland, Wyoming, Maine, and New York.
In New Hampshire, the online casino bill passed through the House in 2023, but there was an edict not to pursue a bill in 2024. Things are at a bit of a stalemate there currently, but 2025 could well be the year for things to get moving again.
As for Illinois, this state is facing a large deficit, which makes iGaming a big consideration. This untapped revenue could help plug the deficit, but it’s unlikely this will happen in 2025.
In Maryland, there has been some progress in 2024 as the House wanted iGaming for its revenue potential. However, the bill won’t be filed in 2025. The attorney general also said a referendum was needed. This means it could all go wrong for the state (which could certainly benefit from the increased revenue, given the budget deficit).
Wyoming’s plans for legalization started making progress in 2024 when Rep. Robert Davis filed the online casino bill. This was the first time, but there weren’t enough votes for the bill to be considered in committee. Davis is said to want to refile the bill in 2025. This time, there is a study to go with it that shows the state could benefit from $40 million in tax revenue, which might sway votes.
Maine came closer to passing legislation for iGaming in 2024. The Senate did pass a bill, but this was voted down. Here, the bill was for iGaming exclusivity to native tribes in Maine, so it depends on how much they want to push forward. The state could certainly do with the revenue to fund infrastructure.
Michigan’s Influence on Online Casinos in Other US States
The success of Michigan’s iGaming implementation can show other states how this can be a major driver for the economy. As all states are different, it’s unlikely others can match the setup and organization in the same way. However, the Michigan blueprint is certainly a great place to start for other states looking to maximize revenue from this sector, especially those in deficit.
Whenever new states introduce and legalize iGaming, it will be important to focus on responsible gaming initiatives. This will then pave the way for long-term success and sustainability while protecting the consumer.
