Michigan’s regulated online gambling sector has reached a new record, reporting $3.8 billion in gross receipts for 2025. Data released this week confirms a nearly 30% increase over 2024, cementing the state’s position as a premier hub for digital iGaming and sports betting in the United States.
The year concluded on a high note, with December producing nearly $400 million in total receipts, the highest monthly figure since the market’s inception.
iGaming Outpaces Sports Betting
While sports betting remains a visible component of the market, online casino gaming continues to be the primary economic engine. In 2025, internet casino games generated $3.1 billion, accounting for the vast majority of total online income. In December alone, iGaming receipts hit a record $315.8 million.
Adjusted revenue for the year, which accounts for promotional deductions, rose by over 30% to approximately $2.9 billion. Conversely, while sports betting receipts grew to $671.3 million, the growth was attributed more to improved operator margins and tighter promotions rather than a significant surge in wagering volume.
State and Local Economic Impact
The industry’s success translated into a massive windfall for public funds. As per the Michigan Gaming Control Board, 2025, operators contributed $624.6 million in state taxes and statutory payments.
- Detroit: The city received $161.4 million in taxes and fees from online activity.
- Tribal Operators: Tribal governments received nearly $72 million in payments throughout the year.
The 2025 performance suggests that Michigan’s online gambling sector has transitioned from a high-growth experiment into a stable and essential pillar of the state’s financial landscape.
