Michigan’s gambling market demonstrated resilience in February 2025, posting significant year-over-year growth even as the industry experienced typical post-January seasonal declines. According to the latest figures from the Michigan Gaming Control Board (MGCB), the state’s commercial and tribal operators generated $268.5 million in combined iGaming and sports betting gross receipts for February, representing a 22.9% increase compared to the same month last year despite falling 18.9% from January’s robust numbers.
iGaming Continues Its Dominance in Michigan’s Online Gambling Landscape
Online casino gaming remained the powerhouse of Michigan’s digital gambling ecosystem in February. Operators reported $222.5 million in gross internet casino revenue, continuing an impressive streak as the sixth consecutive month with iGaming revenues exceeding the $200 million threshold. This figure represents the fourth-highest monthly total in the state’s iGaming history, showcasing the sector’s sustained popularity among Michigan players.
Though February’s iGaming revenue reflected a 10.3% decrease from January’s record-setting $248.2 million, the year-over-year comparison reveals a much more positive story with an 18.3% increase from the $188 million reported in February 2024. When adjusted for promotional credits, iGaming produced $209.1 million in adjusted gross receipts, showing an even more impressive 23.6% year-over-year growth.
Industry analysts note that while the month-to-month decline might appear concerning at first glance, February’s shortened calendar (with three fewer days than January) contributed significantly to this decrease. On a per-day basis, February’s performance nearly matched January’s record pace, indicating consistent engagement from Michigan’s online casino players.
Sports Betting Experiences Expected Seasonal Contraction
The sports betting segment followed predictable seasonal patterns in February, with the conclusion of the NFL season leading to reduced betting activity. Michigan sportsbooks collected $388.1 million in total wagers during February, representing a significant 32.5% decrease from January’s handle and a 6.7% decline compared to February 2024. The month’s total marked the lowest monthly handle since August 2024.
Despite the reduced betting volume, operators benefited from favorable outcomes, particularly during the Super Bowl. Sportsbooks enjoyed a solid 12.1% hold rate (the percentage of wagers retained as revenue), generating $46.8 million in gross receipts. While this figure represented a 45.3% decrease from January’s exceptional performance, it showed an impressive 53.9% year-over-year increase.
Online sports betting dominated the market with $379.9 million in handle, while retail sportsbooks at Detroit’s three commercial casinos generated $8.2 million in wagers. After accounting for promotional credits, sports betting operators recorded $28.1 million in adjusted revenue for the month.
Operator Rankings Show Competitive Marketplace
February’s results revealed interesting shifts in the competitive landscape among Michigan’s licensed operators. In the iGaming sector, FanDuel reclaimed the top revenue position after trailing BetMGM for three consecutive months. FanDuel generated $61.7 million in gross iGaming revenue, reflecting a 27.4% increase from February 2024 and marking its third straight month above the $60 million threshold.
BetMGM finished a close second with $60.3 million in online casino revenue, also posting impressive year-over-year growth of 20%. Despite February’s results, BetMGM maintains a slim lead of $2.1 million over FanDuel for 2025 year-to-date performance with $126.7 million in cumulative revenue.
DraftKings retained its position as the third-largest iGaming operator, though its February performance of $27.8 million represented its lowest monthly total since June 2023 and a concerning 24.6% year-over-year decline.
In sports betting, FanDuel dominated the competition with $146 million in handle and $24.3 million in revenue, solidifying its position as Michigan’s preferred sports betting destination.
Tax Contributions Bolster State and Local Governments
Michigan’s regulated gambling market continued to deliver substantial tax revenues to state and local governments in February. Operators paid a combined $43.8 million in taxes and fees to the state during the month, with the lion’s share coming from iGaming operations, which contributed $42.3 million. Sports betting operators added $1.5 million in state taxes and fees.
Detroit’s three commercial casinos – MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown – submitted $12.1 million in taxes and municipal services fees to the city. This included $11.5 million from iGaming activities and $640,248 from sports betting operations. Additionally, tribal operators contributed $4.7 million in payments to their governing bodies during February.
Detroit’s Commercial Casinos Report Mixed Results
Beyond their online operations, Detroit’s three commercial casinos generated $104.63 million in monthly aggregate revenue from retail operations in February1. Table games and slots produced $104.76 million, while retail sports betting recorded a loss of $124,8531.
The market shares among Detroit’s casinos remained relatively steady, with MGM Grand Detroit leading at 47%, followed by MotorCity Casino at 30% and Hollywood Casino at Greektown with 23%. Compared to February 2023, MGM experienced a slight 1.6% decrease in gaming revenue, while MotorCity and Hollywood Casino posted modest increases of 1.3% and 0.6%, respectively.
The three Detroit properties paid $8.49 million in gaming taxes to the State of Michigan and submitted $12.5 million in wagering taxes and development agreement payments to the City of Detroit.
Michigan Sports Betting Achieves $20 Billion Milestone
February 2025 marked a significant milestone for Michigan’s sports betting industry as it surpassed $20 billion in all-time handle since the market launched in 2021. Despite the seasonal decline, February’s $388.1 million in wagers pushed the state’s lifetime sports betting handle to approximately $20.2 billion, highlighting Michigan’s status as one of America’s premier sports betting markets.
The first two months of 2025 represent the strongest start to any year since online sports betting launched in Michigan. Combined January and February gross sports betting revenue exceeded $132 million, a threshold that required three months (including March Madness profits) to reach in 2024. This record-setting performance was driven by unprecedented hold rates, with February marking the first time Michigan operators recorded consecutive months with holds exceeding 12%.
Regulatory Actions Target Unauthorized Operators
As Michigan’s regulated market flourishes, state authorities continue to combat unauthorized gambling operations. In February 2025, the MGCB issued cease-and-desist orders to five unlicensed offshore operators: BetWhale Casino (Curaçao), Black Lotus Casino (Belize), Coins Game Casino (Curaçao), Love2play Casino (Curaçao and Costa Rica), and Orion Stars 777 Players (China). These operators had been accepting payments from Michigan residents despite lacking proper state licensing.
The MGCB also announced it would hold its next public meeting on March 4, 2025, at the Cadillac Place Office in Detroit.
In industry news affecting Michigan’s gambling workforce, Light & Wonder subsidiary LNW Gaming revealed plans to close a facility in the state, resulting in approximately 100 employee layoffs. This development comes amid ongoing consolidation in the competitive gaming technology sector.
Michigan’s Market Maturity
Michigan’s regulated gambling market continues to mature since the launch of online operations in 2021. Currently, 15 commercial and tribal operators are authorized to offer iGaming and/or sports betting services in the state. All 15 entities provide iGaming options, while 12 offer online sports betting.
As the market enters its fifth year of operation, Michigan has established itself as one of the most successful regulated gambling jurisdictions in the United States, consistently ranking among the top states for both iGaming revenue and sports betting handle.
