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Despite posting record revenue figures in recent months, Michigan's online gambling industry could be doing better, and the Michigan Gaming Control Board is stepping up action to clamp down on unlicensed online casinos. The regulator has sent cease and desist letters to dozens of operators over the last two years who are advised they have 14 days to comply before further legal action is taken.
Michigan is one of a few US states that have licensed online casino operations. Nonetheless, consumers can also explore offshore sites that are licensed in external jurisdictions. According to esports.net, these sites still need to follow regulations that include serving players well, offering fair games, and making timely payouts. This open-minded approach to the gambling industry has helped to create an industry with an economic impact approaching $12 billion and supporting more than 60,000 jobs.
2025's figures have already been promising for the industry, with the $301.4 million of online gambling revenue taken in May representing a 26% year-on-year increase, and a 21.6% month-on-month improvement. Online casinos accounted for the majority of this, drawing in $251.5 million through table games and slots.
This strong performance has helped the 15 legal online operators generate hundreds of millions in tax revenue for the state. Initial licensing costs for online operators in Michigan cost $50,000 for the application fee and an initial cost of $100,000 for a 5-year license. An annual $50,000 fee is then applicable after five years.
The adjusted gross receipts (AGR) of operators are taxed on a graduated scale, starting at 20% on the first $4 million. This rises to 22% for between $4 million and $8 million, 24% for between $8 million and $10 million, 26% for between $10 million and $12 million, and 28% on anything that exceeds this.
Under the 2019 Lawful Internet Gaming Act, only the state's Class III tribal casinos or Detroit's commercial casinos can offer online casino betting. Now, Michigan's regulatory board is clamping down on operators who they feel are putting locals at risk, with the following 19 operators being served with the injunctions.
- Bingo Village
- Cafe Casino
- BitBet
- Davinci’s Gold
- Cocoa Casino
- Desert Nights Casino
- Cyber Bingo
- Eclipse Casino
- Diamond Reels Online Casino
- EuroBets Casino
- Eternal Slots
- Jackpot Capital
- Fair Go Casino
- Two Up Casino
- Paradise8
- GoldWin Casino
- Jackbit
- Ignition Casino
- Red Stag Casino
An additional some operators have also been put under investigation for offering gambling-like options to consumers without meeting the standards of the state's licensing laws. These include:
- BoVegas Casino
- Cherry Gold Casino
- BUSR
- Wager Attack Casino
- Lucky Legends
More recently, the state has focused its ire on predictions markets operating inside the state.
Michigan obtained a preliminary injunction on Sept. 1 barring Kalshi from offering or facilitating sports-event contracts that Michigan considers unlicensed internet sports betting. The restrictions include accepting deposits for that activity, advertising it to Michigan residents and operating without Michigan-compliant geolocation.
Robinhood agreed on September 9, 2026 to stop offering sports-related event contracts in Michigan while litigation continues. Michigan considers these products unauthorized sports wagering.
Gambling regulations are a major part of licensing, with laws to guarantee fair play by operators and protection for potentially vulnerable customers. The top offshore operators will also be licensed in external jurisdictions, providing US bettors with a secure way of gambling.
Clamping down on illegal operations has the potential to improve the tax revenue received by the state. Gambling tax allocation goes towards community and education programs, with the School Aid Fund, anti-gang programs, policing, road improvements, and other causes all benefiting.
- B.E. Delmer, Gambling911.com
