Michigan sports betting tax revenues reached a record month-on-month high in October 2025, with the state posting a new annual handle record of $619.39 million in total bets placed. It was also the second-highest Gross Gaming Revenue (GGR) in state history, with $50.78 million recorded, according to a report by insights and data firm RG. The handle was 8.1% higher than October 2024’s total and 15.6% above the September haul.
These numbers reflect the explosion of industry growth in the USA as a whole this year. In February 2025, for example, American Gaming Association’s annual report surmised legal sportsbooks took nearly $150 billion worth of bets, a 22.2% increase from 2023.
Perfect storm of sport and parlay popularity reasons for uptick
Every year, there is a perfect overlap in the calendar for sports fans. The National Football League (NFL), National Basketball Association (NBA), and Major League Baseball (MLB) occur simultaneously, making October one of the biggest months for sports betting sites.
The surge in popularity of parlay betting is likely another reason for producing such huge returns from receipts. The practice has been trending upwards nationally over the past year, with a special report from the Washington Post noting more money is being spent on parlays than ever before in states like New Jersey, Colorado, Indiana, Maryland, and Illinois, who track such datasets.
Parlay betting means better revenues for sports betting sites. As the same Washington Post report explains, citing Maryland as an example: “bettors have spent 36 percent of their sports betting dollars on parlays this year. Those bets are responsible for 67 percent of sportsbooks’ revenue.”
The operators thriving most in Michigan
MotorCity Casino’s partnership with FanDuel proved to be the most lucrative in terms of handle. The collaboration, which began on March 11, 2020, is exploding. They were able to clear $230,536,816.80 in handle, beating Bay Mills Casino and DraftKings by more than $50million.
FanDuel and DraftKings are two of 13 online sports betting sites in Michigan, with only Colorado (14) having more. Despite the hefty competition, both are way out in front of their rivals, with the former accounting for 37.22% of market share for October handle and the latter 29.14%.
FanDuel’s position at the top of a trending market is a result of their promotional power and strong product design, which have helped the biggest national brands widen the gap on smaller competitors. DraftKings remains the only operator close to matching FanDuel’s monthly volume. It means remaining operators are competing for a much smaller slice of the market and reflects how concentrated Michigan’s online betting economy has become.
Impact on Michigan public services
According to the American Gaming Association’s 2025 “State of the States” overview, most of the funds will be funnelled into the Michigan School Aid Fund (SAF), though other state initiatives including law enforcement, public safety programs, economic development and job creation programs, anti-gang and youth development programs, tax relief, and infrastructure improvements will also receive funding.
The School Aid Fund government-led program includes a per-pupil allowance, special education, at-risk programs, early childhood education, adult education, intermediate school districts, public school academies, vision and hearing screenings, No Child Left Behind grants, Federal grants, school lunch and breakfast, vocational education, assessments, and the Center for Educational Performance and Information.
New hurdles on the horizon for sports betting sites
Despite the impressive financial reports coming out of the sports betting market in 2025, industry insiders are staying alert to moves by gambling regulators within the state. As reported by the Huron Daily Tribune on November 18, 2025, lawmakers in Michigan are looking to tighten restrictions on sports betting advertisements with the introduction of two new Senate bills.
Senate Bills 713 and 714 were introduced on November 13 by Senator Erika Geiss and received bipartisan support with a focus on zeroing in on false advertising. If passed, the bills would ensure a unified state framework is adhered to at all times in a far-reaching commitment to responsible and truthful promotion of online gambling.
It would also allow for local governments to set reasonable limits on public ads like billboards, provided they are not at odds with state law. Companies in violation could face fines and, after repeated offenses, risk losing their gaming or sports-betting license, with enforcement handled by the Attorney General. It could mean a reconsideration for betting operators attempting to advertise in a saturated Michigan market.
There is also the fall-out of the recent NBA, MLB, and NFL betting scandals, which has already seen some operators cap the stake on prop bets to $200 in an effort to combat match-fixing. Will Michiganian policy makers decide to invoke a similar policy?
References
- ESPN – U.S. sports betting industry posts record $13.7B revenue for ’24: https://www.espn.com/espn/betting/story/_/id/43922129/us-sports-betting-industry-posts-record-137b-revenue-24
- Washington Post: https://www.washingtonpost.com/sports/interactive/2025/parlay-popularity-odds-sportsbooks/
- American Gaming – State Of The States: https://www.americangaming.org/wp-content/uploads/2025/02/Michigan_Overview.pdf
- Huron Daily Tribune: https://www.michigansthumb.com/news/article/michigan-gambling-ad-bills-21194968.php
