Michigan Sports Betting Revenue: Key Insights for 2024

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 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.

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)

• 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)

• 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.