Michigan online gambling reaches record $2.9 billion in 2024

Michigan’s online gambling sector achieved a remarkable milestone, with total revenue soaring to $2.9 billion (£2.4 billion/€2.8 billion) in the 2024 calendar year. Both igaming and sports betting reported unprecedented growth, reflecting robust consumer engagement and a thriving market.

Gross receipts from internet gaming and sports betting for 2024 exceeded the prior record set in 2023 by 23.8%. Notably, this figure represents a more than twofold increase compared to the initial year of legal online gambling in Michigan, which recorded $1.90 billion in 2021.

Adjusted revenue, which factors in promotional expenses, reached $2.4 billion—an impressive 22.3% increase from the previous year. These statistics, recently disclosed by the Michigan Gaming Control Board (MGCB) on January 21, encompass both commercial and tribal operators.

Igaming Revenue Surpasses $2.4 Billion

The igaming sector made significant strides, generating over $2.4 billion in revenue in 2024. This marks a 26.3% uptick compared to the previous year and sets a new benchmark for the state. Adjusted gross receipts for igaming also hit an all-time high of $2.2 billion, reflecting a 27.2% increase.

Leading the market, BetMGM and MGM Grand Detroit with $640.1 million in gross receipts and $576.9 million in adjusted receipts set a remarkable pace. Close competitors, FanDuel and MotorCity Casino, reported gross receipts of $614.6 million and adjusted receipts of $552.8 million. DraftKings and the Bay Mills Indian Community rounded out the top three with gross receipts of $454.7 million and adjusted receipts of $409.6 million.

Record-Breaking Sports Betting Performance

In the realm of sports betting, 2024 also marked a record-setting year. Gross receipts from online sports betting reached $460.5 million, representing a 9.5% growth. Conversely, adjusted gross receipts for this segment saw a 13.0% decline, totaling $194.4 million.

Players wagered a staggering $5.3 billion on sports online, yielding a 15.2% increase. The hold rate in Michigan for 2024 stood at 8.69% based on gross receipts.

Dominating the online betting landscape, FanDuel and MotorCity Casino accrued gross receipts of $202.4 million from a $2.0 billion handle, achieving a 10.36% hold. DraftKings and the Bay Mills Indian Community closely followed with gross receipts of $125.5 million from a $1.5 billion handle, resulting in an 8.33% hold. Notably, BetMGM and MGM Grand Detroit captured third place with $65.8 million in revenue from a $757.0 million handle, despite reporting an adjusted gross receipts loss of $14.3 million.

Other notable performers included ESPN Bet and Hollywood Greektown Casino, generating gross receipts of $20.2 million from $322.4 million in bets, yielding a 6.27% hold. Additionally, Fanatics, in partnership with the Lac Vieux Desert Band of Lake Superior Chippewa Indians, achieved $19.6 million in revenue from a $236.1 million handle for an 8.30% hold.

Contributing to state revenue, operators remitted a total of $466.1 million in taxes and payments, with $451.4 million attributed to igaming and $14.7 million to sports betting. Tribal operators also contributed $55.3 million to state governance.

Marginal Growth for Detroit Casinos

Turning to the land-based sector, Detroit’s three commercial casinos generated $1.29 billion in revenue, reflecting a modest increase of 1.6%. Slot machine revenue surged to $1.03 billion, a 4.9% increase, while table games revenue rose by 5.2% to $251.0 million. However, retail sports betting adjusted gross receipts fell sharply by 30.7%, totaling $9.7 million.

MGM Grand Detroit led the trio with $603.7 million in total land-based revenue, a 7.0% increase. MotorCity Casino’s revenue increased by 3.3% to $385.9 million, while Hollywood Casino at Greektown saw a 2.7% rise, reaching $292.9 million.

Collectively, these establishments contributed $103.9 million in wagering taxes from slot and table games, along with $372,729 from retail sports betting.

Strong Finish to 2024

The MGCB also reported December figures, which demonstrated record-breaking results for the month. Online gambling revenue reached $264.2 million, up 9.0% year-on-year, although 7.1% lower than November figures. Adjusted gross receipts for December were $219.9 million, reflecting a 10.8% increase from 2023, yet down 8.5% from the prior month.

Despite the month-on-month declines, igaming gross receipts hit a new record of $244.0 million, with adjusted gross receipts totaling $219.6 million.

Leading the December market, BetMGM and MGM reported their highest monthly total of $65.1 million in gross receipts. In the sports betting segment, however, gross receipts fell to $20.2 million, a 66.9% decrease from the previous year and a 65.4% decline from November. This trend reflects a broader industry pattern where favorable customer-friendly sports results have influenced operators nationwide.

Adjusted gross receipts for sports betting were a mere $267,881, with a handle of $597.7 million translating into a hold of 3.38% based on gross receipts. The leaders in this segment, FanDuel and MotorCity Casino, reported $7.2 million in gross receipts from a $235.5 million handle, achieving an 8.58% hold.

Detroit’s casinos concluded the year with a revenue of $109.6 million for December, falling 5.7% short of 2023’s figures, while edging ahead of November by 1.11%. Land-based slot revenue totaled $109.3 million, and retail sports betting adjusted gross receipts amounted to $276,509.