What Is the Largest iGaming Market in America?
The evolution of iGaming worldwide is ongoing. This is mainly due to increasing accessibility. The use of mobile phones, internet access, and online payment gateways are factors making it more accessible.
The iGaming sector in Michigan became legal in 2021 and its expansion was quite dramatic. The revenue it started bringing in was able to surpass that of New Jersey and Pennsylvania. They legalized iGaming in 2023 and 2017 respectively.
Michigan is top of the list
Michigan swiftly emerged as America’s biggest iGaming market. In 2023, its online casinos did extremely well and surpassed $1 billion in revenue well before the year ended. From 2021 to 2023, it also surpassed all the other states with the iGaming revenue it managed to bring in.
The MGCB reports revenue
In the United States, Michigan is one of seven states where iGaming is legal. Online casinos must report revenue to the MGCB. This includes online gambling, sports betting, and poker.
The Michigan Gaming Control Board (MGCB) issues a report every month on gaming revenue. This includes online gaming revenue for each operator. The tribal casinos in Michigan, such as Gun Lake Casino, don’t have to report casino revenue to the MGCB. However, their online partners must do so. Michigan online casino Play Gun Lake is in partnership with Parx. So, this resulting partnership must report its revenue.
Michigan sets iGaming revenue records
Michigan started seeing growth in revenue from iGaming quite quickly. It began setting new records month after month.
Michigan set a revenue record in October 2024, bringing in $220.7 million in gross revenue. In November, gross receipts from iGaming peaked at $226 million, while adjusted gross receipts from online sports betting and iGaming combined totaled $240.4 million during the same month.
Casino operators are always trying to improve the experience for players. This includes offering great bonuses and promotions. They try to make interfaces as user-friendly as possible, use AI to determine player preferences, and ensure payment gateways are secure. They need to gain their loyalty, so players keep coming back for more.
New Jersey, Michigan, and Pennsylvania are the top three iGaming markets, and they jostle to win the top spot. In 2023, Michigan and New Jersey generated $1.92 billion but Michigan was slightly ahead. In 2024, Pennsylvania led the iGaming market with $2.42 billion in gross gaming revenue, followed closely by Michigan and New Jersey. Each of these states generated over $2 billion in gross gaming revenue in 2024. They have solidified their position as market leaders for iGaming in the United States.
Tax revenue in Michigan
In Michigan, online casinos are subject to a 20% tax on gross revenue up to $4 million and a 25% tax on gross revenue exceeding $12 million. With the gaming market growth in the US, states can benefit from the tax revenue from online casinos.
For the month ended November 30, 2024, iGaming taxes/payments for online gaming operators were $42.5 million. In Michigan, there are currently 15 operators offering iGaming and these casinos have combined to deliver more than $1 billion in tax revenue over their lifetime.
Online sports betting in Michigan
Online sports betting is legal in more U.S. states than online casino gambling. In Michigan, online sports betting first became legal in 2021. In November 2024, the gross revenue generated by the Michigan sports betting market was $58.3 million. In comparison to November 2023, this number was 72.0% higher. In November, more than $650 million was wagered online, setting a record for Michigan’s sports handle.
The tax rate for retail and online sports betting operators is 8.4% of adjusted gross sports betting receipts.
The state currently hosts 11 legal sports betting apps where players can legally place sports bets. In Michigan, watching live sports is a very popular pastime. This enables fans to stay informed about scores, player statistics, and game developments as they happen. Doing so can help them to make more informed bets.
Sports bettors in Michigan also get bonuses from online sportsbooks. Popular types of bets they can place include moneyline, point spread, over/unders, and prop bets. Some sports betting sites offer real-time data, making live betting a popular option. Sports bettors in Michigan can place bets on college games.
