How a September 'dip' reveals online casinos as Michigan’s true powerhouse

However, a deeper look reveals a powerful paradox. Online casinos continue their relentless, stable ascent, while sportsbooks show dramatic volatility.

This 'dip' is not a warning sign, as we have seen these types of bumps before. Rather, it’s a moment to appreciate igaming's structural dominance and consistent growth, which is strengthening Michigan’s overall regulated market.

September’s numbers

While combined revenue saw a small drop, the performance of the two underlying verticals was drastically different.

Vertical	September gross receipts	Month-over-month change (AGR)	Year-over-year change (AGR)
iGaming (Online Casino)	$259.1 million	-1.5%	+33.5%
Sports Betting	$43.6 million	-61.3%	-52.0%

iGaming gross receipts of $259.1 million represent a marginal fall from August's record of $263.27 million. When looking at adjusted gross receipts (AGR), iGaming's $243.4 million only dipped 1.5%, a minor fluctuation in a maturing, multi-billion dollar market.

In contrast, the story in sports betting is one of extreme volatility. Despite the total wagering volume, or handle, surging 54.7% month-over-month to $524.3 million (boosted by the start of the football season), the Adjusted Gross Receipts (AGR) plummeted 61.3% to just $13.2 million. This disparity highlights that players won big in September, leading to much lower win margins for operators.

Year-on-year data confirms online casinos are Michigan's true revenue engine

The true measure of a market’s health is long-term growth, and the year-on-year figures emphatically crown online casinos as the state's financial bedrock.

iGaming Adjusted Gross Receipts (AGR) soared by a staggering 33.5% compared to September of the previous year. This consistent, double-digit growth demonstrates that the online casino segment is not reliant on seasonal sporting events but rather driven by a steady player base and structural stability.

Why iGaming is built for long-term growth

When revenue streams from linked verticals become this dynamic, one has to ask the questions: how and why?

The divergence between online casinos and sports betting is structural, rooted in user psychology and product offering:

• Convenience and accessibility: Online casinos offer 24/7, instant gratification through thousands of game titles, making it a high-frequency, easily accessible entertainment option compared to waiting for specific sporting events to start and resolve.

• Wider variety of games: The sheer volume of content, from digital slot machines to live dealer table games, dwarfs the limited inventory of available wagers in sports betting. This variety keeps players engaged year-round.

• Lower volatility and stable margins: For operators and, by extension, state coffers, the mathematical models behind casino games (like slots and blackjack) ensure a predictable and stable revenue margin. Sports betting, by its nature, is subject to unpredictable outcomes, causing wild swings in monthly AGR and, consequently, tax revenue.

Stability and growth cement iGaming’s future in the US

Despite the headline suggesting a slowdown, the September report confirms that iGaming is the powerful, consistent engine of Michigan's regulated online market. The $50.8 million in iGaming taxes and fees generated for the state, a vast majority of the total, underscores this stability.

As Michigan looks toward the final quarter of the year, analysts expect this segment to continue driving dependable growth, proving that quiet consistency often beats volatile hype.