2025 was a record year for Michigan’s online gambling industry, with $3.8b (£2.7b) in gross receipts from regulated iGaming and online sports betting.
That sum showed a nearly 30% increase from 2024, highlighting the size of the state’s now-established online gambling industry.
With nearly $400m (£290m) in online gambling receipts, December was the highest monthly total since Michigan introduced regulated online betting and casino gaming.
The majority of that momentum came from online casino play, which was still far more popular than sports betting.
Online Casino Drives the Growth
Online casino gaming has become the primary revenue source for Michigan operators.
Over the full year, internet casino games brought in $3.1b (£2.2b), accounting for the large majority of all online gambling income in the state.
In December, iGaming alone produced $315.8m (£229.2m) in gross receipts, setting a new monthly high.
Following promotional deductions, the adjusted 2025 iGaming revenue amounted to around $2.9b (£2.1b), thus marking a rise of more than 30% compared to the previous year.
Even after removing marketing costs, online casino offerings remain the main driver of operators and tax revenue, whereas sports betting accounts for a smaller share of the total digital market.
Annual sports betting receipts increased to $671.3m (£487.1m) in December, well above 2024 totals, despite a slight decline in revenue from November and a sharp decline in handle.
Even though operator revenue increased throughout the year, betting volume did not increase significantly.
This suggests that tighter promotions and better margins, rather than increased wagering activity, were the main drivers of the sportsbook side’s growth.
In 2025, operators turned over $624.6m (£453.2m) in state taxes and statutory payments — nearly all of which came from online gaming — and the state collected over $66m (£47m) in December alone.
The city of Detroit received $161.4m (£117.1m) in wagering taxes and fees from online activity, while the city’s three physical casinos brought in about $1.3b (£943.4m) annually, a little less than in prior years.
With nearly $72m (£52m) in payments to their governments throughout the year, tribal operators continued to play a significant role.
Overall, the 2025 figures show that online gambling is now a reliable, lucrative source of income for Michigan’s gaming industry rather than a growth experiment.
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