Michigan iGaming Revenue 2026: Figures and Tax Split

Michigan iGaming revenue reached 3.09 billion USD in gross receipts during 2025. That is up 26.5 percent on the prior year, according to the Michigan Gaming Control Board. Online casino play now drives most of the state’s online gambling income, and it sits well ahead of internet sports betting. This guide sets out the yearly figures since launch and the split between gross and adjusted receipts. It also covers how the state taxes internet gaming and where the money goes.

Michigan iGaming revenue in 2025

In 2025 the state’s online casino operators reported 3.09 billion USD in internet gaming gross receipts. That figure is up 26.5 percent on 2024, so the market grew by more than a quarter in a single year. After promotional deductions, internet gaming adjusted gross receipts came to 2.90 billion USD.

Sports betting adds a second stream on top. Combine online casino and internet sports betting, and the total climbs. Michigan operators booked 3.8 billion USD in gross receipts and 3.3 billion in adjusted gross receipts across the year. The combined adjusted figure rose 39.5 percent on 2024, per the MGCB monthly revenue report for December.

December 2025 set the monthly record. Internet gaming gross receipts hit 315.8 million USD that month, the highest on record for the state. Companies planning to enter should read our Michigan iGaming licence requirements guide first. Only a fixed group of licensees can earn this revenue.

How Michigan reports internet gaming revenue

The MGCB publishes two revenue numbers each month, and operators often confuse them. Gross receipts measure what players lose across all sessions, before any deductions. Adjusted gross receipts then subtract eligible promotional play, such as free credits and bonuses.

That gap matters because the state taxes the adjusted figure, not the gross one. For internet gaming in 2025, the gap was about 190 million USD: 3.09 billion in gross receipts against 2.90 billion adjusted. For sports betting the gap runs wider, because operators lean on promotions to win bettors.

So when a headline reports Michigan online casino revenue, check which figure it uses. Gross receipts show market scale. Adjusted gross receipts show the taxable base and give a truer read on what operators keep before costs.

Michigan iGaming revenue by year since launch

Michigan launched internet gaming and online sports betting in January 2021. Combined online receipts have grown every year since. The table below tracks the yearly totals for both products together, as reported by the MGCB each January.

Combined receipts rose from 1.4 billion USD in the first year to 3.8 billion USD in 2025. The 2025 total was 29.5 percent above 2024. Internet gaming carried most of that growth. Online casino receipts alone climbed from 1.9 billion USD in 2023 to 3.09 billion in 2025.

Internet gaming versus sports betting revenue

Online casino play is the larger of the two streams by a wide margin. Internet sports betting brings in far less, because a bettor stakes money that mostly returns as winnings, while casino games retain a steadier hold. The split for 2025 looks like this.

Internet gaming produced roughly four of every five dollars of gross receipts in 2025.

That is why operators treat the online casino licence as the prize and the sportsbook as a customer-acquisition tool. Many of the leading brands run both, then move sports bettors across to casino games where the margin is higher.

How Michigan taxes internet gaming revenue

Michigan taxes the two products at different rates, and both apply to adjusted gross receipts rather than gross. The wider compliance and reporting duties behind those tax filings sit in our guide to Michigan iGaming compliance. Internet gaming carries a graduated rate. Internet sports betting carries a single flat rate.

The graduated iGaming rate starts at 20 percent on adjusted gross receipts under 4 million USD. It then rises in bands to 28 percent on receipts above 12 million USD per operator each year. So a large operator pays a higher marginal rate than a small one. The internet gaming tax law sets these bands in statute.

Detroit’s three commercial casinos also pay a share to the city on top of the state tax. Tribal operators sit outside the commercial tax framework, because they run under tribal-state compacts. Instead they make agreed payments to governing bodies, which came to 71.9 million USD in 2025.

Where Michigan iGaming tax revenue goes

The state directs internet gaming tax into a dedicated Internet Gaming Fund. After the MGCB covers its regulatory costs, the money flows to several named recipients set in state law. Most sources report the totals but never say where the tax lands, so this is the part operators and residents ask about most.

The largest share supports the state School Aid Fund, which pays for K-12 education. Defined portions also go to the City of Detroit and the state equine development fund. The exact percentages sit in MCL 432.212, and the MGCB publishes the annual distribution alongside the Detroit casino wagering tax figures. The rate itself may change: see our guide to the proposed Michigan iGaming tax increase for the 36 percent band under discussion.

Sports betting tax splits on a fixed basis. For commercial operators, 70 percent of the 8.4 percent tax goes to the state and 30 percent goes to the City of Detroit. That means a single Detroit operator funds both the state budget and its host city from one wager.

What the revenue figure does not show operators

A 3.09 billion USD headline looks large, but it is not operator profit. Several deductions sit between market gross receipts and the money an operator keeps. Anyone modelling a Michigan entry needs the full stack, not just the top line.

First, promotional play comes off gross receipts to reach the taxable base. Michigan caps that promotional deduction, though. It tapers from 10 percent of receipts in the first three years to nothing after year five, so the taxable base widens over time. Then the graduated tax takes 20 percent to 28 percent of that adjusted figure for online casino. On top of tax, an operator pays platform and supplier fees, game-content licensing, payment processing, and marketing. Our revenue reporting and audit support team models these lines before an application goes in.

The market structure caps who can earn this revenue at all. Only fifteen operators can hold an internet gaming licence, and each must partner with a licensed casino. A platform brand cannot trade on its own. Entry runs through a casino deal plus a supplier licence, handled by our gaming licence acquisition service.

Who earns Michigan iGaming revenue

Michigan reserves internet gaming for its casino licensees. Three Detroit commercial casinos and twelve federally recognised tribes can each hold one licence, which caps the market at fifteen operators. Each operator may run up to two brands, so the state supports up to thirty online skins.

This closed structure explains why a small group of national brands dominates the revenue tables. The licence stays with the casino, and a commercial platform reaches players only through that partnership, as our guide to MGCB licence categories explains. Operators weighing US markets often assess the New Jersey iGaming market and the Pennsylvania iGaming licence alongside Michigan. Each state runs its own regulator and taxes revenue on its own terms.

Ongoing compliance shapes the cost of holding that revenue. Operators file monthly revenue reports, connect to the state responsible gaming database, and meet MGCB testing standards. Our gaming licensing compliance team manages those duties day to day. For the licensing side, see the full cost of holding a Michigan licence.

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