In 2023, Michigan’s iGaming market made a significant impact, claiming 29.4% of the national market share, ranking it second in the United States. The state’s online gambling industry witnessed remarkable growth, with Michigan casinos online seeing a 21.6% increase in collective revenue compared to 2022. This achievement highlights Michigan’s strong presence in the national iGaming landscape, driven largely by top operators like BetMGM, DraftKings, and FanDuel. Together, these operators contributed significantly to Michigan’s $1.9 billion total revenue for 2023.
Michigan Edges Out New Jersey in Close Competition
Michigan narrowly clinched the second spot in the national iGaming market, sharing a 29.4% market share with New Jersey but surpassing it in dollar value by a mere $115,513. This tight race saw Michigan’s online casinos generate $1,923,857,570 in revenue, slightly more than New Jersey’s $1,923,742,057. The competition was intense throughout the year, with both states showing parallel revenue trajectories.
Despite having fewer operators (15 in Michigan versus 29 in New Jersey), Michigan’s online casinos have been more effective in revenue generation. This is partly due to Michigan’s larger adult population of 7.9 million compared to New Jersey’s 7.2 million, and the fact that online casinos contribute a more significant portion (82%) to Michigan’s total gambling revenue than in New Jersey (66%).
Other states like Pennsylvania lead with a 32.2% market share, while Connecticut, West Virginia, and Delaware hold smaller shares, contributing less significantly on a national scale.
Prospects of Michigan Outshining Pennsylvania in 2024
Despite having a smaller population than Pennsylvania, Michigan is rapidly becoming a leading market for online casino gambling. Software vendors are increasingly launching new games in Michigan, as seen with the release of “Star Trek: The Next Generation” at BetMGM Casino. Operators are continuously enhancing their platforms with better promotions and more engaging games. Michigan’s successful performance in 2023 sets a high bar for 2024, though overtaking Pennsylvania’s market share might be challenging due to the demographic differences.
Michigan’s remarkable achievement in the iGaming sector in 2023, claiming a significant share of the national market and closely competing with New Jersey, underscores its growing influence in the online gambling industry. The state’s ability to attract top operators, innovate in gaming offerings, and leverage its demographic advantage suggests a bright future, potentially making it one of the most robust markets for online casino gambling in the nation.