Detroit

Michigan’s $5.4 Billion Sports-Betting Binge Hands Detroit An $8.8 Million Cut

AI Assisted Icon
Published on June 11, 2026
Michigan’s $5.4 Billion Sports-Betting Binge Hands Detroit An $8.8 Million CutSource: Google Street View

Michigan’s online sports bettors put roughly $5.4 billion on the line in 2025, which works out to about $534 per resident. The massive surge in mobile wagering poured millions into state and Detroit coffers and reignited a simmering fight in Lansing over how to tax bets placed on phones and apps, a market that has exploded since online betting launched in 2021.

Big handle, real revenue

State regulatory data show the total handle, or the amount wagered, reached $5.4 billion last year, while operators kept about $435.9 million in adjusted receipts before taxes. According to the Michigan Gaming Control Board, the state collected roughly $27.1 million from internet sports betting in 2025, and the three Detroit casinos split about $8.8 million under the current revenue rules.

Per-wager tax proposed and pulled

Governor Gretchen Whitmer tried to squeeze more out of that action in her FY27 budget with a sliding per-wager fee: 25 cents for the first 20 million wagers per licensee and 50 cents for every bet after that. The administration projected the move would raise about $38.8 million for Medicaid programs.

Lawmakers in both chambers ultimately left the per-bet idea on the cutting-room floor, omitting it from budget bills this spring after pushback from colleagues and industry groups. The proposal and its quiet demise were detailed in state budget briefing papers and reporting by Covers.

Responsible gaming: helplines and self-exclusion

Public-health officials and state data indicate more people are asking for help as betting has moved into everyone’s pocket. A data review published this week found average calls to Michigan’s problem-gambling helpline jumped from about 1,336 annually in fiscal years 2016–2020 to roughly 3,627 annually in the five years after online wagering began, a 171% increase, according to MLive.

The Michigan Department of Health and Human Services maintains a 24/7 Problem Gambling Helpline at 1-800-270-7117, and the Michigan Gaming Control Board’s executive director report shows 1,550 people were registered to self-exclude from sports betting as of Jan. 1.

Where the money flows: casinos and apps

Online casino play is still where most of the money is. iGaming produced roughly $2.9 billion in adjusted receipts in 2025. Sports wagering is catching up fast, though: total handle climbed from about $3.7 billion in 2021 to $5.4 billion in 2025, according to industry reporting by PlayMichigan.

Industry reporting also shows MotorCity Casino, FanDuel’s Detroit partner, recorded about $201.6 million in online sports-betting revenue in 2025, per iGamingBusiness.

The numbers give lawmakers fresh leverage as they weigh tax changes and spending priorities, while public-health advocates press for more prevention and treatment resources. If you or someone you know needs help, Michigan’s Problem Gambling Helpline is available 24/7 at 1-800-270-7117.