Michigan iGaming And Sports Betting Hit Nearly $3.8 Billion In 2025
Michigan, which has a regulated online gaming market, posted a record year in 2025, with combined iGaming and sports betting revenue reaching nearly $3.8billion, making it one of the most successful digital gaming markets in the country.
In December, combined gross receipts from iGaming and sports betting for commercial and tribal operators totaled $399.8million, an increase of 19.1% from November.
The final month of the year closed on a high note, driven primarily by online casino gaming, largely in line with expectations.
iGaming reached a new high in December, generating $315.8m in gross receipts and surpassing the record set in October.
Adjusted gross receipts totaled $296.7m, highlighting strong player engagement during the holiday period.
For the full year, iGaming generated $3.1bn, accounting for the vast majority of Michigan’s nearly $3.8bn in combined gaming revenue and representing a solid increase from the prior year.
Sports betting results were mixed in December. Gross receipts declined slightly to $84m, down from $87.3m in November.
Adjusted gross receipts fell to $61.1m, while handle slipped month over month to $512.9m.
Despite the December slowdown, sports betting produced $671.3m in gross receipts for the year, contributing to a 29.5% increase in total gaming revenue compared with 2024.
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Tax Contributions And Market Expansion
The revenue growth delivered significant tax benefits. Gaming operators paid $66.3m in taxes during December, including $62.1m from iGaming alone.
Detroit’s three commercial casinos contributed $15.2m in wagering taxes and municipal service fees, while tribal operators made payments totaling $8.5m to their governing bodies.
For all of 2025, Michigan gaming operators paid $624.6m in gaming taxes, with Detroit receiving $161.4m and tribal governments collecting nearly $72m.
Market expansion also supported 2025’s results. Hard Rock Bet launched in December through partnerships with Island Resort & Casino and the Hannahville Indian Community, replacing the former Sports Illustrated sportsbook after Evoke exited US consumer operations.
Michigan ended the year with 15 approved iGaming operators and 12 licensed sports betting platforms.
Player activity drew national attention in November, when DraftKings paid out a record-breaking $22.4m prize to a Michigan player from a $0.20 online slot bet.
The win marked the largest online casino payout in U.S. history and briefly impacted monthly revenue totals. Regulators maintained a firm stance as the market expanded.
Following a high-profile NBA betting scandal, the Michigan Gaming Control Board increased scrutiny around sports betting integrity and warned operators against offering prediction markets tied to sporting events.
As sportsbooks test new wagering formats nationally, Michigan regulators emphasized compliance, consumer protection, and market integrity.
Nearly four years after launching its iGaming and sports betting framework, Michigan continues to deliver strong revenue growth, substantial tax contributions, and consistent regulatory oversight.
With annual tax revenue approaching $625m, the state’s 2025 performance is increasingly viewed as a benchmark for other jurisdictions considering similar legislation.
