It was a good year for the iGaming industry in the Wolverine State. Michigan online gambling revenue reached $2.9 billion in 2024, a new record according to sportsbook pay per head experts.
The total revenue from online gaming and sports betting in 2024 exceeded the previous record established in 2023 by a margin of 23.8%. In 2021, the first year that internet gambling was permitted in Michigan, the state earned $1.90 billion, more than quadrupling that amount.
Adjusted revenue, which reached $2.4 billion after deducting promotional expenditures, reflected a 22.3% increase from the previous year. The Michigan Gaming Control Board (MGCB) released the figures on Tuesday (21 January). Commercial and tribal operators are included in the statistics.
Michigan Online Gambling Revenue
In 2024, the igaming industry generated more than $2.4 billion in sales. The prior year’s total was 26.3% lower. Hence, this is an all-time high for the state. With a 27.2% rise, igaming’s adjusted gross receipts hit $2.2 billion, a record high. With total revenues of $640.1 million and adjusted revenues of $576.9 million, BetMGM and MGM Grand Detroit were crowned market leaders.
Based on sportsbook comparisons, FanDuel and MotorCity Casino were in close pursuit, with $614.6 million in total revenue. As a result of the collaboration, adjusted revenues were $552.8 million. Third place went to DraftKings and the Bay Mills Indian Community, who brought in $409.6 million after adjustments and $454.7 million in gross sales.
Next, we will look at sports betting, which, similar to igaming, had a record high income. Online sports betting brought in more than $460.5 million in 2024, a 9.5% increase from the previous year. However, at $194.4 million, adjusted gross revenues for this division were 13.0% lower.
Participants spent $5.3 billion on online sports betting, an increase of 15.2%. According to gross revenues, the hold rate in Michigan was 8.69% in 2024. It would appear that FanDuel and MotorCity Casino are unstoppable in the operator space. Gross receipts for the year were above $202.4 million, with a handle of $2.0 billion, representing a hold of 10.36%.
Sportsbooks in Michigan
Among the closest competitors, DraftKings and the Bay Mills Indian Community, with a handle of $1.5 billion, brought in $225 million, leading to a yearly hold of 8.33%. Third place went to BetMGM and MGM Grand Detroit, who secured $8.69% of the $757.0 million handle with $65.8 million in revenue. However, this collaboration’s $14.3 million loss in adjusted gross receipts should be noted.
Additionally, ESPN Bet and Hollywood Greektown Casino are other notable achievers. From $322.4 million in bets, $20.2 million was collected in gross revenues, yielding a hold of 6.27%. Fanatics, in partnership with the Lac Vieux Desert Band of Lake Superior Chippewa Indians, achieved an 8.30% hold, collecting $19.6 million in revenue out of $236.1 million in handling. There are talks that they are using odds management to increase sportsbook profits.
The operators forked over $466.1 million in state taxes and payments. Online gambling will receive $451.4 million, while sports betting will receive $14.7 million. Tribal operators also paid governing bodies a total of $55.3 million.
Turning our attention to land-based pursuits, we see that the three commercial casinos in Detroit brought in $1.29 billion, growing by 1.6%. A 4.9% rise brought in $1.03 billion from slots, while a 5.2% increase brought $251.0 million from table games. Competing sportsbooks saw a decline of 30.7% in QAGR, reaching $9.7 million.
The leader in overall land-based income, up 7.0%, was MGM, with $603.7 million. Compared to Hollywood Casino in Greektown, MotorCity had a 3.3% increase in revenue to $385.9 million and a 2.7% increase to $292.9 million. The three contributed $103.9 million to the state’s coffers through slot and table game wagering taxes and $372,729 through retail sports betting taxes.
