Michigan iGaming is having an unprecedented year in terms of online casino revenue. That trend continued throughout the month of March, which saw the state collect over $90 million in taxes associated with internet gaming.
According to the Michigan Gaming Control Board, online casino gross receipts achieved their best month since iGaming launched early 2021. Revenues reached $322.1 million for online casino activity in the state during the month of March. That figure represents a two percent increase over the previous monthly record set in December 2025 of $315.8 million.
Compared to February 2026, Michigan iGaming spiked 17.9% while online sports betting rose 28.6%. Year-over-year, the state’s online casino gross revenue has soared more than 25%. Online sports betting revenue has also seen an improvement of more than $18 million.
March Madness college basketball was responsible for a considerable bounce in monthly online sports betting handle throughout the month. Sportsbook apps in the state reported $485.1 million in total wagers.
However, the Adjusted Gross Receipts (AGR) amounted to $32.7 million. When winning bets were settled, the cumulative hold for Michigan online sportsbooks during the month of March was 6.74% once promotions were deducted.
The enforcement wing of the state’s Gaming Control Board has recently set its sights on offshore, illegal operators that offer their online casino and sports betting services to individuals located within the state. Earlier this month, the MGCB issued cease-and-desist orders to 45 entities that operate online gambling in Michigan. Platforms including BetOnline and BetAnything were among the companies that were warned for their unlicensed activity.
The move could prove to be a net positive for legal online casino and sports betting in the state. Offshore operators reduce the overall revenue and market share of licensed iGaming apps that contribute to local and statewide initiatives through taxation agreements. The more entrenched offshore operators become in a state that offers regulated iGaming, the less potential revenue (and taxes) the state can expect from operators that it formally licenses through compacts with land-based casinos and tribal gaming facilities.
The potential revenue boost from curtailing illegal gambling in the state could prove pivotal in Gov. Whitmer’s $800 million tax plan. The governor is proposing a revamped, tiered taxation system for MI online casinos and sports betting that could impact Return to Player (RTP) rates for slots as well as prices sports bettors pay via odds.
Included in the proposal is a potential $0.25 per-bet levy on all sports bets that are handed within the state’s borders, plus another $0.25 assessment for all wagers once a 20-million-bet threshold is met. Tax increases on all Michigan iGaming revenue above $185 million could also experience an eight percent hike under the plan.
If the Michigan legislature passes the proposal, it could significantly impact the frequency and value of promotions that individuals might otherwise benefit from. For now, the state allows online operators to deduct promotional expenditures from final revenue figures. If and when that changes, MI online casinos and sportsbook apps could impose greater scrutiny on how often casual players are able to take advantage of reload and first deposit bonuses.
