Michigan online gambling sites are expected to hit a new record in earnings by 2024, owing to impressive figures from the previous year. Currently, Michigan occupies second place in earnings from virtual casinos, with Pennsylvania as the leader. However, after significant growth in the first half of this year, the revenue generated from online casinos in Michigan is expected to skyrocket. It may contribute an extra $400m by the end of this year.
According to data recently published, Michigan’s online casinos generated revenues of $1.92 billion in 2023. This trend continues in 2024, with the state generating $976.6 million from January to May alone. Altogether, the average monthly gross revenue collected from the online casinos in Michigan has been approximately $195.3 million.
If this growth continues, it will be possible for Michigan to reach up to $2.34 billion in total revenue by the end of the year, according to economic analysts. The current success has been due to optimistic results of established Michigan’s online platforms in the last three months, which recorded a minimum of $190 million per month and $215.2 million in March. These figures establish a promising outlook as Michigan aims to become the best online casino USA hub.
This competition between industry giants like BetMGM and FanDuel is gradually deepening, and they directly contribute to the performance of Michigan’s market. BetMGM maintained its leading position for a record of almost three years before FanDuel pipped it in March and April of this year. However, BetMGM took the lead in May with a difference of only $100,000. This competition shows that the market is dynamic, and the operators always seem to seek a competitive advantage using several strategies and offering as many games as possible. For instance, BetMGM offers 1,821 unique slots instead of FanDuel with 1,110, showcasing different strategies to attract and maintain clients.
Additionally, the future of Michigan’s online gambling sector has new shifts as Sports Illustrated is planning to exit the market. SI is one of the 13 online casinos in the state that has had problems and has been ranked last regarding revenue. Moreover, their monthly earnings have not exceeded $1.9 million this year. After their exit, there will be a new slot for a license, and rumor has it that Hard Rock may be willing to grab it. This could lead to even more competition as Hard Rock recently acquired several assets from 888 Holdings.
The MGCB has pointed out that although Hard Rock has bought them, they will still need to apply for an online casino license in Michigan. While they grossed nearly $9 million in New Jersey in May, the entrance of Hard Rock will likely lead to changes and disruptions to the Michigan market.
Therefore, as the online casino industry expands in Michigan and new records are set, it is not only about competing with Pennsylvania. However, Michigan is also trying to position itself among the top iGaming states in the United States of America as well. The state’s growth strategy in this sector is not limited to revenue generation for Michigan. Still, it also wants to ensure that the state is among the preferred destinations for anyone interested in online casinos, suggesting bigger pictures and changes within this segment.
As the regulation of online gambling changes and the operators continue to tinker at the edges of compliance, the outlook for online gambling in Michigan well into 2024 and beyond is very bright for players and everyone involved.