Michigan’s regulated online gaming ecosystem posted robust growth in February 2025, defying a contraction in player wagering volumes. According to data released by the Michigan Gaming Control Board on March 18, combined gross receipts from online casino and sports betting hit $268.5 million, marking a 22.9% year-on-year rise, even as it registered a seasonal 18.9% decline compared to January. The state’s igaming segment continued to be the primary growth engine, while sports betting yielded mixed results, buoyed by higher hold percentages despite a notable drop in handle. Adjusted gross receipts—net of promotional outlays—also surged, reflecting improving margins for operators.

Strong Top-Line Numbers, But Seasonal Dip from January

Michigan’s combined gross receipts from online casino and sports betting operations reached $268.5 million in February, up from $218.5 million in the same month last year. This figure encompasses all licensed digital operators in the state.

Despite the robust year-on-year increase, monthly receipts were down nearly 19% from January’s high. This decline aligns with typical seasonal patterns, as January tends to see higher activity post-holiday. Nonetheless, the sector’s long-term momentum remains intact, underpinned by igaming’s steady rise.

Adjusted Gross Receipts Show Healthier Bottom Line

Adjusted gross receipts (AGR), which exclude promotional credits, totaled $236.3 million for the month. This marks a 29.8% increase from February 2024, though it represents a 17.9% month-on-month dip from January.

The consistency in AGR growth signals an improving profitability landscape for operators, even as they trim back on promotional spend. This shift also reflects a maturing market where user loyalty and organic engagement are beginning to take precedence over subsidized acquisition.

Sports Betting Revenue Rises Despite Lower Player Wagering

The state’s sports betting vertical painted a contrasting picture. Gross receipts reached $46 million in February, up from $30.5 million a year earlier—an increase of nearly 51%. However, total handle fell 31.6% year-on-year to $379.8 million, indicating players wagered significantly less.

The rise in gross receipts despite lower handle was driven by a more favorable hold rate. Gross hold stood at 12.11%, while adjusted hold was 7.16%, both well above historical averages.

FanDuel Remains Michigan’s Undisputed Leader

FanDuel, in partnership with MotorCity Casino, continued to dominate Michigan’s sports betting landscape. It reported $23.7 million in gross receipts from a handle of $142.9 million, translating to a monthly hold of 16.59%—well above the market average.

DraftKings, allied with the Bay Mills Indian Community, held the second position with $12.9 million in gross receipts and a 12.1% hold. BetMGM, working with MGM Grand Detroit, ranked third at $4.9 million and an 8.96% hold.

Online Casino (iGaming) Emerges as Core Growth Engine

The lion’s share of February’s online gaming revenue came from igaming. Gross receipts from digital casinos totaled $222.5 million, representing an 18.4% year-on-year increase. Adjusted receipts rose even faster at 23.6%, pointing to margin improvements.

FanDuel and MotorCity Casino led the market with $61.7 million in gross igaming revenue and Rs 58 million in adjusted receipts. BetMGM fell to second place after topping the charts in January, posting $60.3 million in gross and Rs 56.7 million adjusted. DraftKings secured third with $27.8 million in gross and Rs 26.1 million adjusted.

State and Local Tax Contributions Continue to Climb

Michigan’s online operators contributed Rs 43.8 million in taxes and fees during February, a substantial sum that underlines the fiscal significance of regulated digital gaming. Of this:

Rs 42.3 million came from igaming

Rs 1.5 million was attributed to online sports betting

Detroit’s commercial casinos paid Rs 12.1 million to the city and Rs 7.9 million to the state from gaming operations. Additionally, Rs 30,828 in sports betting tax went to the state, while Rs 37,679 was allocated to Detroit.

Tribal operators contributed Rs 4.7 million to their respective governing bodies, reflecting the balanced structure of Michigan’s dual-regulatory model.

Detroit's Brick-and-Mortar Casinos Face Downward Pressure

The performance of Detroit’s three land-based casinos contrasted with the upbeat online figures. Combined revenue from slots, table games, and retail sports betting totaled Rs 98.8 million, a 5.5% drop from February 2024 and 5.7% below January 2025.

Breaking it down:

Table games and slots earned Rs 106.4 million, down 6.4% from last year.

Retail sports betting, however, showed a modest rebound with Rs 820,450 in revenue, reversing a loss from the same period in 2024.

MGM Detroit led the retail market with a 47% share, followed by MotorCity (29%) and Hollywood Casino at Greektown (24%).

Stronger Numbers for Online Sports Betting: Digital Gaming Flourishes While Retail Lags

February reinforced the diverging paths of Michigan’s online and retail gaming sectors. While igaming and online sportsbooks continue to generate double-digit growth and solid tax contributions, physical casinos are facing stagnation, if not outright decline.

FanDuel, DraftKings, and BetMGM remain firmly entrenched at the top, although competition continues to sharpen. Regulatory stability, evolving product offerings, and disciplined promotional spending have given digital operators a runway for sustainable growth.

Going forward, the ability of the land-based segment to adapt—and possibly integrate more hybrid digital-physical experiences—may determine its long-term relevance in Michigan’s fast-maturing gaming market.