A report from the American Gaming Association (AGA) shows that Michigan had the largest online casino market in 2023. It is currently the online casino capital of the U.S. In overall revenue from retail and online casinos, it finished in fifth place.
Michigan’s online casinos
With $1.92 billion wagered at online casinos, Michigan beat New Jersey to first place by about $115,000. Next in line came Pennsylvania followed by Connecticut and West Virginia.
A turning point came in Michigan with the passing of the Lawful Internet Gaming Act in 2019. This permitted legal Michigan online gambling to thrive. Residents could play a diverse range of casino games. Michigan started to offer online gambling in 2021, and this opened the door for players to bet on slot machines, table games, and poker. Under the law, online casinos must adhere to various rules and regulations to protect players. Online casinos are now legal in six U.S. states and there are currently 16 online casinos in Michigan.
Casino apps
Online gambling allows casinos to expand their customer base and serve players who do not live near a casino. Players can download casino apps and play their games from home using their mobile phones. In 2021, residents of Michigan bet $1.1 billion through apps. This figure reached $1.6 billion in 2022 and $1.92 billion in 2023.
Online gambling tax revenue
Michigan gained $354 million in tax revenue from internet gaming which was higher than expected. Most of the tax revenue goes to support the School Aid Fund for Michigan’s K-12 public school students. There are predictions that tax revenue could go higher than half a billion dollars by 2026. For those wanting to buy a home in Michigan, this is good news, especially if their children attend public schools.
Responsible online gambling
When online gambling was made legal, one of the responsibilities of casinos was to implement responsible gambling measures. The aim was to balance the economic benefits of online gambling with the need to protect players.
Casino market growth and the convenience of online gambling can have negative consequences for some individuals. It has become very easy for compulsive gamblers to place bets. The harm they can experience from addiction is well-documented and the societal cost can be high. Helplines in Michigan are receiving more gambling-related calls and there are more referrals to treatment for gambling-related problems.
Michigan has lessened this burden by introducing social programs to help those suffering from gambling addiction. Raising awareness and connecting problem gamblers with resources is a priority. It has several counseling agencies that offer treatment opportunities. This includes three facilities in the Detroit area that offer in-patient treatment. With continued investment in these projects, the positives could outweigh the negatives.
Michigan is fifth in overall gambling revenue
Retail casinos in Michigan have taken a hit. In 2023, Michigan had a 2.7% decline in traditional casino gross gaming revenue. Despite this drop, Detroit still ranks eighth in the country when it comes to retail gambling revenue. Nevada, New Jersey, Pennsylvania, and New York beat Michigan into fifth place in overall casino revenue. The long-established retail casino market in Nevada is still the largest in the country but Michigan is gradually gaining on the three other markets.
