Michigan’s gambling industry is enjoying a historic high. Buoyed by its flourishing land-based casino resorts and a fast-expanding online gaming sector, the Great Lakes State has established itself as one of the most successful regulated markets in the U.S. In May 2025 alone, online gaming revenues exceeded $300 million, setting a new state record. The vast majority of that was made up by online casino games, with internet sports betting providing a minor share.
That growth stems from a hugely successful 2024, in which Michigan generated over $2 billion in iGaming gross receipts, resulting in more than $450 million in tax revenue for the state. With such figures now becoming increasingly routine rather than exceptional, it has prompted conversations about what this means for the regulatory landscape, and whether Michigan might consider relaxing its rules, in line with the more liberal approach seen in states such as New Jersey and Pennsylvania.
The Foundation: Land-Based Casino Resorts
Michigan’s rise as a gambling destination has always been based on its vibrant casino resort scene. The state is home to 26 land-based casinos, including three major commercial venues in Detroit — MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown — and 23 tribally owned casinos spread across the state. These resorts are more than just your typical gambling halls; they’re entertainment destinations offering hotels, restaurants, live music, and convention centres.
What sets Michigan apart is how its land-based framework directly feeds into its online gambling laws. When the state legalised online casinos and sports betting under the Lawful Internet Gaming Act (2019), it did so with one crucial condition: online operators must partner with an existing land-based casino, whether tribal or commercial. It was a model designed to ensure that local institutions remained central to the ecosystem and directly benefited from the rise of digital gaming.
It’s a strategy that has worked for the most part. The partnerships forged between casinos and major platforms have allowed Michigan to launch one of the most successful, efficient, and well-regulated iGaming markets in the U.S. But there are questions about whether the requirements are too restrictive.
The Numbers Driving Change
The most compelling argument for re-evaluating Michigan’s current gambling structure is straightforward: the revenue generated from taxes is substantial. In 2024, the state collected $466.1 million in combined tax and fee revenue from internet gaming and betting. Of that, $451.4 million came from online casino gaming alone, nearly ten times what was contributed by online sports betting.
According the PlayMichigan’s Gambling Snapshot, these revenues go towards funding public schools, infrastructure, and community programmes. As a result, the Michigan Gaming Control Board (MGCB), the regulatory body responsible for overseeing commercial and tribal gaming, has been praised for maintaining a robust framework that balances consumer protection, responsible gambling, and strict enforcement of the regulations. The MGCB has gone as far as issuing multiple cease-and-desist letters to over a dozen offshore operators in recent months, as it’s determined to continue curbing illegal gambling.
With revenues growing month on month, many stakeholders now believe Michigan has earned the right to explore a more open system, one that offers greater flexibility for operators and potentially even more rewards for the state.
A Comparison with New Jersey and Pennsylvania
Two U.S. states that have consistently been used as models for gambling policy evolution are New Jersey and Pennsylvania. These states have adopted a more liberal approach towards the iGaming framework and have seen substantial growth as a result. In both cases, operators enjoy greater freedom in how they enter and operate within the market. While some level of land-based affiliation still exists, the requirements are looser, and regulatory agencies allow more direct licensing and platform diversity.
As a result, online casinos in these states have experienced significant growth. Pennsylvania’s success, in particular, demonstrates how flexibility in licensing can be balanced with robust consumer protections. This kind of openness has also encouraged both states to participate in the Multi-State Internet Gaming Agreement (MSIGA), enabling them to pool players for online poker and jackpot games across borders, boosting prize pools and consumer engagement.
Could Michigan Loosen Its Laws?
There’s no longer a question of whether Michigan can sustain a successful gambling ecosystem, because it already has, and continues to do so. The more pressing issue is whether that same ecosystem can evolve to remain competitive. The idea of relaxing the strict casino-partnering rule has gained traction lately, especially among lawmakers and industry analysts who see success in other states as proof that more freedom does not equate to greater risk.
Michigan, for example, could:
- Join the multi-state compact more fully to boost liquidity for online poker and other games.
- Allow for greater licensing flexibility for online-only operators.
- Reduce the dependency on physical casino partnerships to encourage innovation and market entry.
- Explore newer technologies such as augmented reality (AR) and virtual reality (VR) in relation to casino gaming, which could become easier to implement in a looser regulatory environment.
None of these steps would require dismantling the current model, but they would signal a shift toward aligning with national trends.
What It Means for Casino Resorts
Relaxing digital regulations does not mean sidelining Michigan’s casino resorts. If anything, greater digital freedom could allow resorts to focus on enhancing their physical appeal, investing more in on-site experiences, high-end hospitality, and live events that attract both tourists and locals.
In fact, many of these resorts already benefit from cross-promotion with their online partners. A land-based operation can be integrated with an online operation, which can then lead to the development of more partnerships, increased marketing flexibility, and improved consumer engagement.
Conclusion
Michigan has demonstrated its ability to lead the way in regulated online gambling. Its combination of tightly controlled laws, committed land-based casino partners, and effective oversight has delivered commercial success and real public benefit in the form of tax revenue and social reinvestment.
But if the state is to continue evolving and staying ahead of the curve, change will be necessary. Embracing elements from the New Jersey and Pennsylvania models, particularly in terms of market freedom, could unlock more growth and innovation.
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