Michigan’s iGaming and sports betting sectors have experienced a surge in momentum in 2023, carrying over into the new year. The two sectors combined for a record $2.3 billion in gross receipts in 2023, an 18% increase from the previous year. This growth is a positive sign for the state’s gaming industry, which saw only $1.4 billion in revenue in its first year of legal betting in 2021.
The Michigan Gaming Control Board (MGCB) reported that the $2.3 billion in gross receipts in 2023 consisted of $1.9 billion from iGaming and $420.4 million from sports betting, both of which are new annual records. The strong performance of Michigan’s sports teams, including the Michigan Wolverines and the Detroit Lions, contributed to the heightened betting action in 2023. The Detroit Lions’ appearance in the NFC Championship game garnered significant betting interest, especially after their victory over the Tampa Bay Buccaneers.
December 2023, in particular, saw a surge in gambling activity, as the total gross gambling revenue hit $181.4 million, the highest monthly total ever recorded. Online gambling Adjusted Gross Revenue for December was also up almost 30% year on year at $198.4 million. This strong performance led to operators paying $36.7 million in taxes in 2023, with the majority coming from iGaming.
In addition to its record-breaking numbers, the MGCB has also focused on other areas of business, including reappointing board members Joni M. Thrower Davis and Andrew T. Palms, by Governor Gretchen Whitmer. Their terms will expire at the end of 2027. Furthermore, the MGCB has taken action against illegal operators in the state, issuing cease-and-desist letters to three online gaming companies operating illegally.
Overall, Michigan’s gaming industry has seen substantial growth in 2023, fueled by the success of its iGaming and sports betting sectors. The record-breaking revenue numbers and actions taken by the MGCB indicate a positive trajectory for the state’s gaming industry as it enters 2024.