Michigan Has Largest Online Gambling Market in U.S., Study Shows
Michigan Online Gambling Market Study: State Gains $1.9B Revenue
According to a recent Michigan online gambling market study, the state has become a hotbed for gambling.
The American Gaming Association released findings showing that bettors in Michigan wagered $1.92 billion on poker, blackjack, and other online casino games in 2023. As such, Michigan topped the list of largest online gambling markets for the third consecutive year, edging New Jersey and Pennsylvania.
Michigan and New Jersey both collected $1.92 billion in revenue, but the Great Lake State technically outperformed by $115,500. Here’s more information on the study.
Record Growth
Throughout the U.S., the commercial gaming industry continues to grow in popularity. Total revenue hit a record $66.52 billion between land-based casino games, sports betting and iGaming in 2023, marking the third straight year of unprecedented growth.
That includes spreads betting, Over/Unders, props, etc. The iGaming industry, in which Michigan had the biggest handle, grew 22.9% from 2022 to $6.1 billion in 2023.
Detroit, the state’s largest city, ranks as the eighth most popular market for gambling. Detroit saw $1.2 billion wagered in 2023, placing it ahead of St. Louis ($1.07 billion) and Boulder City, Nev. Unsurprisingly, the Las Vegas strip was far and away the biggest market, raking it $8.8 billion last year.
That was $6 billion more than No. 2 on the list, Atlantic City, N.J. The Chicago ($2.1 billion) and Baltimore-Washington, D.C. ($2.08 billion) metro areas were third and fourth, respectively, followed by Gulf Coast, Miss. ($1.5 billion).
Amidst the rise of online gaming, brick-and-mortar casinos have taken a hit. The Michigan online gambling market study showed the state saw a 2.7% decline in traditional casino gross gaming revenue last year, the fourth largest decrease in the country. Indiana had the biggest decrease of any state at 3.4%, followed by Maryland and Mississippi.
‘Tough Sell’
While online sports betting is now legal in 29 U.S. states plus Washington, D.C. — Michigan launched in December 2019 — online legalization has progressed at a much slower rate.
Michigan is one of six states to also offer legal online casinos, along with Connecticut, Pennsylvania, New Jersey, Delaware, and West Virginia. Rhode Island is set to join the fray in early 2024.
Michigan bettors have several online operators to choose from for casino play, including Caesars, WynnBET, BetRivers, DraftKings and FanDuel. Based on handle, DraftKings and FanDuel have separated themselves as the best gambling sites.
This popular form of gaming allows players to play many of their favorite games such as video poker, blackjack, roulette, and dozens of different slots. Payouts are instantaneous, and players have the option of placing their winnings toward online sportsbook bonuses.
Proponents expect more states to adopt online casino gambling within the next year, as it has proven to be a strong source of revenue. However, it is also seen as a more serious form of gambling than online sports betting, which concerns some critics.
Chris Krafcik, managing director of the Eilers and Krejcik gambling analytics firm, told the Associated Press that online casinos have “always been a tough sell” for state lawmakers. Krafcik predicted that “only a very small number of states” will legalize online casino betting by the end of 2027.
Stay tuned for more updates on this Michigan online gambling market study.
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