Overview of Michigan Sports Betting
Michigan’s sports betting launched in March 2020 under the Michigan Gaming Control Board (MGCB). It started with retail and now includes commercial and tribal gaming and online and retail sportsbooks.
Municipalities’ cut of tax revenue created is used to help fund the police force, neighborhood and development programs, public safety programs, anti-gang programs, capital improvements, and road improvements. In contrast, the entire state wagering tax goes to K-12 classroom education. (American Gaming Association, 2024)
Michigan has a strong sports tradition, with each of Detroit's four major sports teams active since 1957 or before. Theoretically, that gives it great potential in the sports betting sector, but limited upward movement in handle and revenue between 2022 and 2023 suggests that history and culture won't always guarantee massive growth.
Annual Sports Betting Growth in Michigan
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Monthly Sports Betting Growth in Michigan
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Michigan Sports Betting Revenue
Michigan’s gross gaming revenue (GGR) has grown exponentially over the last four years. In 2020, with limited operations, the state generated $18.3 million in gross receipts during its infancy. However, the launch of online gambling in early 2021 helped GGR skyrocket to $319.5 million by the end of the year.
The growth continued in 2022, with total gross receipts reaching $418.6 million, a 31% increase from the previous year. By 2023, the market stabilized at $434.4 million, a 3.8% increase from the prior year.
In 2024, Michigan’s sports betting industry demonstrated strong performance once again. The state recorded $4.01 billion in total wagers from January to October, generating $398.49 million in gross sports betting receipts. This includes revenue from both online and retail sports betting operations, with hold rates averaging 10.07% for the year.
Michigan Betting Market Performance
Michigan sports betting has grown exponentially since it was legalized, and from 2020 to 2023, significant handle and revenue growth have occurred within the state.
2020
Michigan sports betting launched in a tough year with the COVID-19 pandemic.
Despite economic uncertainty, the state went live with sports betting and had an opening handle of $130,763,498. The market made $18.2 million in revenue, and the tax collected was $1.5 million. This was the foundation for growth to come.
2021
Michigan sports betting boomed in 2021 as internet gaming was introduced. The market exploded with a handle of just shy of $4 billion in gross sports betting receipts, a 3,031% increase from the previous year. Sports betting revenue followed suit with $319.5 million, and tax collected increased by more than $25 million. This was due to increased consumer interest, more market access, and potential stabilization after the pandemic.
2022
Michigan sports betting continued to grow in 2022. The handle was $4,814,088,969, a 21% increase from 2021. Revenue was $418,647,137 in adjusted gross receipts as the market grew with consumer engagement increasing. The steady growth meant sports betting was becoming more mainstream, more operators were entering the market, and more consumers were participating in legal sports betting.
2023
Michigan sports betting showed signs of maturity and stability. The handle was $4,810,903,877, almost the same as 2022. Revenue was up 3.7% to $434,438,031. This could be the start of a more steady growth phase for the market in the coming years.
2024
In 2024, Michigan’s sports betting market thrived, maintaining strong performance across key metrics. The total handle reached $4.01 billion from January through October, with $398.49 million in gross receipts.
Economic Contributions and Tax Allocations
Michigan's sports betting industry has contributed significantly to state revenues, benefiting local programs and public initiatives. Between January and October 2024, the state collected $35.99 million in city wagering taxes, a key component of Michigan’s gambling framework. A portion of these taxes supports the School Aid Fund, helping to finance education across the state.
The City of Detroit, a hub for commercial gambling, received $15.22 million in city wagering tax payments during this period. These funds, alongside monthly state taxes, are allocated to improve city infrastructure and community services. Michigan's governing bodies have ensured these funds are used effectively, supporting both local and statewide needs. (Michigan Gaming Control Board, 2024)
Latest Updates in Michigan Sports Wagering
- July 2024: Michigan Gaming Control Board adds $3 million to budget for responsible gaming initiatives. (Michigan.gov, 2024)
- June 2024: Caesars increases its footprint in Michigan by buying WynnBET’s Michigan sportsbook and iGaming business and partnering with Sault Ste. Marie Tribe of Chippewa Indians. (Yahoo Finance, 2024)
- May 2024: Offshore sportsbook Bovada is ordered to shut down in Michigan, representing an effort by the state to snuff out unlicensed operators. (iGamingBusiness.com, 2024)
- May 2024: The Michigan Supreme Court agrees to hear the case of a woman suing BetMGM for $3.2 million, a landmark case in the state's gambling industry. (Michigan Lawyers Weekly, 2024)
Online Sports Betting Revenue Highlights
- Michigan sports betting handle has increased more than 23 times since launch, from $18.3 million in 2020 to $434.3 million in 2023.
- Michigan sports betting handle has increased more than 37 times since launch, from $130.8 million in 2020 to $4.81 billion in 2023.
- Sports betting tax revenue is up over 2,000% since 2020.
- Michigan has come a long way, but major growth in 2022- 2023 was slow. The market may have reached its peak or need some adjustment.
Michigan Snapshot
| Key Aspect | Details |
|---|---|
| Population | Approximately 10.04 million residents as of 2024. (World Population Review, 2024) |
| Political Affiliation | Michigan has a slight Democratic lean in most cases and has a Democratic trifecta, controlling the governorship and both legislative chambers. It recently voted Republican in the 2024 presidential election. (270towin.com, 2024) |
| Year Sports Betting Legalized | Permitted from December 20, 2019. Retail sports betting operations began in March 2020, and online gaming became available in January 2021. (Detroit Free Press, 2021) |
| Number of Sportsbooks Operating | There are 13 online sportsbooks: DraftKings, BetMGM, FanDuel, Caesars, BetRivers, ESPN Bet, Eagle Casino Sports, Firekeepers Sportsbook, Four Winds, Fanatics Sportsbook, SI Sportsbook, Golden Nugget and Play Gun Lake (powered by betPARX). |
| Gross Gaming Revenue (GGR) 2023 | $434,438,031.00 |
| Sports Betting Handle 2023 | $4,810,903,877.00 |
| Professional Sports Teams | Michigan has several professional teams, including the Detroit Lions (NFL), Detroit Pistons (NBA), Detroit Red Wings (NHL), and Detroit Tigers (MLB) |
FAQs on Michigan Sports Betting Revenue
General Information
When was sports betting permitted in Michigan?
Sports betting was legalized on December 20, 2019, with retail operators opening in March 2020 and online operations beginning in January 2021.
How many sportsbooks operate in Michigan?
There are 14 sportsbooks in the state: DraftKings, BetMGM, FanDuel, Caesars, BetRivers, ESPN Bet, betPARX, Eagle Casino and Sports, Firekeepers Sportsbook, Four Winds and Fanatics Sportsbook.
Market Data
What was Michigan’s total sports wagering handle in 2023?
According to Michigan Gaming Control Board reports, the state reported a wagering handle of $4,810,903,877.00 in 2023.
How much revenue was generated in 2023?
Michigan’s gross gaming revenue in 2023 totaled $434.4 million, with over $36 million collected in taxes.
What is covered on this page?
This page provides a breakdown of Michigan's sports betting market, including handle, revenues, and operator updates, all backed by official reports. (Michigan Gaming Control Board, 2024)