Michigan Online Gambling Hits $312.5M in August

Michigan’s online gambling market reached a new milestone in August 2025, generating a record $312.5 million in gross revenue. The surge reflects continued growth in both iGaming and internet sports betting, signaling that digital platforms are increasingly dominating the state’s gaming landscape. The Michigan Gaming Control Board (MGCB) reported that this figure was 39.5% higher than the same month last year, marking a significant year-on-year expansion. It also exceeded July’s total by 9.8% and surpassed the previous monthly record of $302 million set in May 2025 by 3.6%, highlighting the market’s consistent upward trajectory over the summer months.

iGaming and Sports Betting Drive Growth

iGaming remained the primary driver of Michigan’s online gambling growth, with gross revenue totaling $263.3 million, up 33.9% from August 2024. Internet sports betting also posted remarkable gains, jumping 79.9% year-on-year to reach $49.3 million. The figures encompass both commercial and tribal operators, reflecting the broad scope of the state’s regulated online gambling ecosystem. Adjusted gross receipts (AGR), which account for promotional spend and provide a more accurate measure of actual revenue, rose sharply by 45.7% to $281.4 million. iGaming AGR increased 39.8% to $247.2 million, while sports betting AGR more than doubled, rising 109.8% to $34.2 million, underscoring the sector’s rapid expansion and the growing engagement of Michigan residents with digital betting platforms.

Total sports betting handle, representing the amount wagered, stood at $338.9 million in August, a 21% increase from the same month last year. This generated a gross revenue hold of 14.55% and an AGR hold of 10.09%, reflecting both strong wagering activity and effective risk management by operators. FanDuel and MotorCity led the iGaming market, producing $71.1 million in gross revenue and $66.9 million in AGR, overtaking MGM and BetMGM, which slipped to second place with $66.6 million in gross revenue and $62.6 million AGR. DraftKings, partnered with the Bay Mills Indian Community, ranked third with $41.1 million in gross revenue and $38.6 million AGR, demonstrating the competitive dynamics among major operators in the state.

Operator Rankings in Sports Betting

In sports betting, FanDuel and MotorCity retained the top position, posting $17.8 million in gross receipts and $13.5 million AGR from a $107.7 million handle. This represented a hold of 16.5% based on gross receipts, illustrating their strong performance in both revenue generation and player engagement. DraftKings followed with $15.7 million in gross receipts and $9.9 million AGR from a $103.1 million handle, while BetMGM reported $6.8 million in gross receipts and $4.5 million AGR on a $50.7 million handle, corresponding to a 13.41% hold. These figures highlight a competitive sports betting market where market share and profitability vary significantly among operators.

The state collected $53.7 million in taxes from online gambling during August, including $51.6 million from iGaming and $2.1 million from sports betting. The City of Detroit received $13.8 million in local taxes, primarily from iGaming ($13.2 million). Tribal operators contributed $6.2 million to governing bodies, illustrating how both commercial and tribal gaming operations support state and local revenue streams. The increase in tax contributions underscores the growing economic significance of online gambling in Michigan, particularly as it continues to outpace traditional casino operations.

While online gambling surged, revenue from Detroit’s three commercial casinos fell to $106.9 million in August, a 5% decline from the previous year. Table games and slot machines generated $105.7 million, down 4.6%, while sports betting revenue fell sharply, down 26.7% to $1.2 million. MGM Grand Detroit maintained the largest market share at 48%, followed by MotorCity Casino at 30% and Hollywood Casino at Greektown at 22%. The contrast between the rising online sector and the declining brick-and-mortar revenue highlights a clear shift in consumer behavior, with more players gravitating toward digital platforms for convenience, promotions, and accessibility.

Michigan’s online gambling revenue hit a record $312.5 million in August 2025, driven by strong growth in iGaming and sports betting, while traditional commercial casino revenue declined.

Analysis

The August results indicate that Michigan’s online gambling sector is increasingly outperforming traditional casino operations, both in revenue generation and tax contributions. Rapid growth in iGaming and sports betting demonstrates the expanding role of digital platforms in the state’s gaming economy. Meanwhile, declining commercial casino revenue suggests a structural shift in the market, with online channels capturing a growing share of player activity. For operators and regulators, these trends emphasize the need to adapt strategies to a landscape where digital gambling is now the primary engine of growth.