Michigan’s gambling industry thrives under a comprehensive and evolving regulatory framework that ensures sustainability and growth. Last year alone, the sector brought in $5.3 billion in revenue. With its focus on trust, responsibility, and effective taxation, the state’s strict but efficient approach led to an impressive 39.5% increase in revenue from the previous year.
The taxes received from iGaming and sports betting operators, $451.1 million and $14.7 million as reported, contributed significantly to critical public sectors. Beyond the financial impact, the Michigan Gaming Control Board (MGCB) prioritizes constant evaluation and rule changes to maintain a healthy market. Throughout 2025, the MGCB’s emphasis is on enforcement actions to clamp down on illegal operators and protect residents. Therefore, 2026 promises to be a year of zero tolerance for unlicensed operators and promotion of safer gambling decisions via initiatives like “Play It Smart, Michigan”.
The Evolution of Michigan’s Online Gambling Market
According to research from the American Gaming Association, Michigan is now one of the leading states in the U.S. for regulated online gambling. In 2023 alone, residents wagered approximately $1.92 billion on online casino games.
Despite the impressive figures, many licensed platforms in Michigan allow new players to start with very small deposits or even explore games in demo mode. You could try here, for example, to see how these low-risk entry options work in practice. This accessibility became possible in 2021, when the first state-licensed online casino platforms officially launched.
However, the groundwork was laid with the Lawful Internet Gaming Act of 2019. Below are several key developments and regulations that shaped the state’s current framework:
- 2014: Michigan launched its official iLottery, allowing players to buy instant keno and scratch-off game tickets from a computer or mobile device.
- 2016: Michigan lottery expanded its operation to include online purchase of popular draw games like Mega Millions.
- 2019: Governor Gretchen Whitmer signed legislation legalizing online gambling, enabling Michigan’s tribal and commercial casinos to obtain new casino licences Michigan offers for sports betting, online casino games, poker, and fantasy sports.
- March 2020: the first retail sportsbook went live in Detroit.
- 2021: Michigan unveiled the first licensed online casinos, sportsbooks and poker sites.
- 2024: MGCB ousted Bovada in a new effort to clean the market, increase taxes, enforce advertising restrictions and promote responsible gambling.
- 2025: The board continues its enforcement drives by cracking down and sending nearly 100 cease and desist letters to several unlicensed operators.
What the 2026 Regulatory Changes Introduce
Most of the Michigan Gaming Control Board regulations are geared towards improving compliance and enhancing players’ protection. In the last two years, the board has shifted focus entirely to clearing the Michigan gambling market of offshore and unlicensed platforms. Additionally, the MGCB requires licensed operators to comply with its reinforced technical standards and enhanced responsible gambling practices.
Operators, in order not to miss out on the massive potential the Michigan market offers, are adjusting to the new regulatory demands. Operators must play by the rules and obtain a licence to enter the market. A partnership with one of the licensed tribal and commercial casinos is needed to operate in Michigan. After establishing a partnership, the next step is to file the operator licence application. MGCB thoroughly reviews the application, and the process can take up to 2 months.
An essential part of the review process conducted by the MGCB is the background check of all the managers and personnel in the casino’s operations. It is in the operator’s best interest to comply with state laws and provide detailed technical and financial information to increase the chances of approval. Obtaining an initial licence from MGCB costs $100,000 for the initial fee, $50,000 for annual renewal and a non-refundable $50,000 application fee.
New Licensing Rules, Tax Adjustments, and Compliance Standards
The Michigan Gaming Control Board (MGCB) recently renewed the licences of MotorCity Casino, MGM Grand and Hollywood Casino, all located in Detroit. Before renewal, all casinos in Michigan, whether land-based or online, undergo a thorough review for regulatory compliance and adherence to responsible gambling practices. An annual renewal fee also applies.
Online casino, sportsbook, and poker site operators pay taxes based on their adjusted gross receipts. Online casino tax rates range from 20% on less than $4 million in revenue to 28% on $12 million or more. Sports betting sites’ revenues, on the other hand, are taxed at 8.4% after the deduction of all free bets and bonuses. A further 0.25% federal excise tax applies to all wagers. Taxes for a month are collected on the 10th day of the coming month.
Responsible Gambling in Focus
The Great Lakes State is devoted to promoting and maintaining healthy gambling habits among its residents. The commitment was demonstrated in October 2024 as Governor Gretchen Whitmer signed bills to increase the budget for the initiative.
The move increased the compulsive gaming prevention fund from $500,000 in online sports betting tax revenue to $1 million. The annual $1 million fund from iGaming tax revenue also rose to $3 million. Isolatedly, the governor signed a bill to allocate $3 million annually for the ‘Don’t Regret The Bet’ campaign of MGCB.
As always, a significant part of Michigan gambling regulation 2026 is maintaining and promoting responsible gambling Michigan initiatives. Therefore, Michigan online casinos offer tools and resources to help them keep their gambling activities in check. These online responsible gaming tools and resources include:
- Time limit: Activating this feature helps limit the time spent on a gambling platform. It automatically shuts out the players once the time expires.
- Deposit limit: The tool allows players to decide the amount they wish to deposit for the day, week or month. It then restricts the players from depositing beyond the set amount.
- Cooling-off period: Michiganders can suspend themselves from all gaming activities on a site until the scheduled re-opening date.
- Helpline: Out of the gaming platforms, the Michigan Department of Health and Human Services (MDHHS) offers 24/7 toll-free help via 1-800-270-7117.
- DontRegretTheBet.Org: The site provides Michiganders with helpful resources and links to support those in need of support and guidance with their gambling habits.
New MGCB Measures for Player Protection
Michigan is at the forefront of casino market trends 2026 for its zero tolerance for unregulated online gaming platforms. According to Jessica Langlille, a foremost casino with a knack for helping players make informed decisions:
“The number one quality to look for in a gambling platform is the availability and standard of its licensing”
Unlicensed and illegal operators expose Michigan players to risks, like identity theft, fraud and poor data security. Little wonder MGCB goes all out against such platforms and has targeted nearly 100 with legal actions so far this year.
As reported in May 2025, the MGCB adopted GLI-19 in its Administrative Code. The comprehensive standards encompass several technical requirements across various platforms, games, and payment systems. That said, operators are solely responsible for protecting the overall integrity of their platforms. Some of the standards MGCB would expect of an online gambling Michigan platform include:
- Age Verification
- Anti Money Laundering (AML) program
- Stringent KYC Procedure
- Suspicious Activity Reporting (SARs)
- Independent AML Audits
- Certified Random Number Generator
- Responsible Gambling Measures
- Self-Exclusion Security and Database
- And so on
How Digital Innovation Drives Competition
States such as Pennsylvania and New Jersey were at the forefront of the US iGaming growth. Despite being launched in 2021, which was later than several states, Michigan’s online gambling market currently outshines frontrunners. The state instantly leveraged the digital casino culture shift to maximize market growth. While the role of solid regulatory standards is apparent, early integration of digital innovations contributed significantly to Michigan’s success story.
One of the most visible adaptations is prioritising mobile gaming. The Michigan youth are always on their high-end smartphones and tablets. As expected, Michigan online casinos are designed with HTML5 and optimized for a seamless mobile experience with features such as gesture-based control and push notifications. Recently, casino sites in Michigan have been generating data and recommending games that match each player’s preference with AI. Other influential technological innovations include geotracking, live streaming, real-time social interaction, virtual reality, and Blockchain, among others.
Michigan vs. Other Regulated States
Michigan is one of the seven states that allow all categories of online casino games, which include slots, table games and poker. According to 2025 reports by the American Gaming Association, Michigan ranks second behind Pennsylvania and ahead of New Jersey in terms of revenue. The state recorded iGaming revenue of $2.4 billion and $460.5 million in 2024, representing a 26.9% and 9.5% rise from the previous year.
While Michigan offers operators one of the highest profit potentials, its online sports and casino tax rates are favourable. All factors considered, many investors would prefer the 20% to 28% tiered tax rate to other states in the same revenue and market league. Pennsylvania imposes 54% on online slot revenue and 16% on table games, while Delaware collects a 57% tax on online slot revenue. Even a state with a limited market size, such as Rhode Island, has a flat tax rate of 51%.
It is worth noting that two recent proposed bills aim to raise the online sports betting tax from 8.4% to 8.5% and the iGaming tax by just 1%. That seems even more considerate when compared to Louisiana’s proposal to increase the tax rate from 15% to 51% (now dropped) and Ohio’s doubling of the online sports betting tax to 20% in 2022. All these factors put Michigan at the top of the list of most sought-after operators, and the state currently has 16 fully licensed online casinos.
Scenarios for 2026–2030: What Comes Next for Michigan iGaming
Michigan’s iGaming gross receipts have been steadily rising since 2021. That trajectory should continue based on current trends and efforts of the MGCB. Several signs suggest that the Michigan betting industry is still in its infancy, despite overall rapid growth, exemplified by a 24.9% revenue increase in 2024. With its massive population and proactive gaming board with solid regulatory drive, the Michigan online casino market’s projection for the next decade shows positivity.
Furthermore, the direction for the Michigan gambling regulation 2026 is clear. The state’s board focusing its efforts on enforcement in the coming year indicates only one thing. That’s to drive out illegal and offshore sites, create more market opportunities for licensed operators and generate more revenues in the coming years. Even with competition from states (US online gambling laws do not allow intrastate gambling) and economic uncertainty considered, continued positive growth is more likely.
Conclusions and Insights
Online gambling got off to a great start in Michigan and has shown no sign of slowing down. In 2021, the state gave the three commercial and 25 commercial casinos the go-ahead to apply for an online casino licence. And that has resulted in 15 fully operational online casinos. The solid and transparent regulatory framework, overseen by MGCB, plays a key role in the success. Recently, the board has been working around the clock to clear out illegal operators.
Players’ protection always influences the board’s decision. Responsible gambling Michigan initiatives are not an afterthought but one of the objectives for MGCB. That has reduced concerns about problems associated with impulsive gambling. Overall, the evolution of the regulated casino ecosystem is clearly yielding positive results in Michigan and contributing to the growth of key sectors, including education and agriculture.