Key points:
- February 2025 total iGaming and sports betting revenue reached $268.5m, up 22.9% year-on-year but down 18.9% from January
- iGaming revenue of $209.1m grew 23.6% from February 2024 but dropped 10.3% month-on-month
- Internet sports betting revenue was $46m, down 44.5% from January, while the total sports betting handle fell 31.6% to $379.8m
The Michigan Gaming Control Board (MGCB) has reported a decline in iGaming and sports betting revenue for February 2025, following a record-breaking performance in January.
Total revenue from commercial and tribal operators reached $268.5m, down 18.9% from January’s $331.2m but reflecting a 22.9% year-on-year increase.
iGaming revenue remained the primary driver, generating $209.1m in adjusted gross receipts (AGR), a 23.6% increase. However, this marked a 10.3% decline from January’s record-setting $248.2m.
Sports betting, which saw a significant decline from January, generated $46m in gross revenue and $27.2m in AGR, representing a 50.2% month-on-month drop despite being up $14.3m from the prior year.
The overall internet sports betting handle also experienced a sharp decline, falling 31.6% to $379.8m from January. On a year-on-year basis, the handle was down 5.7%, reflecting a slowdown in betting activity following the conclusion of major sporting events in January.
Tax contributions and tribal operator payments
Michigan’s gaming operators reported $43.8m in state tax contributions for February 2025, with iGaming accounting for the majority at $42.3m, while internet sports betting contributed $1.5m. This represented a decline from January when operators paid a combined $46.8m in taxes.
The three Detroit casinos – MGM Grand Detroit, MotorCity Casino and Greektown Casino – paid $12.1m in city taxes and municipal services fees, including $11.5m from iGaming and $640,249 from sports betting.
Tribal operators made an additional $4.7m in payments to governing bodies, reflecting a slight decrease from January’s $5m contribution.
Performance of Detroit casinos in sports betting
Retail sports betting at Detroit’s three casinos also saw significant declines. MotorCity Casino reported the highest retail betting handle in February at $3.1m, while MGM Grand Detroit followed with $2.6m. Greektown Casino also posted a $2.6m handle but reported the lowest AGR at just $47,200.
Comparatively, MGM Grand Detroit generated $202,100 in AGR for the month, while MotorCity Casino led retail sports betting revenue with $566,300. These figures highlight a continued challenge for retail sportsbooks in Michigan, which face strong competition from online betting platforms.
Comparison to January and historical performance
The February decline followed an exceptionally strong start to the year, with January 2025 setting a new record for iGaming revenue at $248.2m. Total gaming revenue in January reached $331.2m, representing a 44.3% year-on-year increase, with sports betting revenue alone climbing 74% compared to January 2024.
The drop in February is in line with seasonal trends, as sports betting activity typically declines after the conclusion of the NFL playoffs and Super Bowl betting surge. The iGaming sector also saw a moderate pullback after its record-breaking January but remains a significant growth driver for Michigan’s gaming industry.
Regulatory actions and market outlook
Amid the fluctuating revenue trends, the MGCB has taken steps to address illegal offshore gambling. On 6 March, the regulator issued cease-and-desist letters to five companies operating in violation of Michigan law.
Despite the February downturn, Michigan’s gaming industry remains in a strong position. Year-to-date iGaming revenue reached $457.3m, marking an 18.5% year-on-year increase. Sports betting, while facing a difficult month, is expected to rebound during key sporting events later in the year.
Operators will be looking to stabilise revenues in the coming months as seasonal factors shift and promotional strategies evolve to drive engagement. With Michigan remaining one of the largest regulated iGaming markets in the US, industry stakeholders are closely watching how digital gaming trends will shape the market in 2025.
