Michigan’s iGaming Success to Force Change in State Gambling Laws?

In what is becoming a bit of a national trend, the Michigan Gaming Control Board’s (MGCB) end-of-year review saw the state’s 2024 iGaming and sports betting revenues surpass the $2.9 billion mark.

For Michigan legislators, the resulting tax revenue is seen as a just reward for having pushed through the approval for the legalization of iGaming in 2021.

The notable benefactors of the boosted tax budget spend include the state’s School Aid Fund to the tune of over $500 million, with millions more allocated for First Responder and Agricultural Development funds too.

The news of Michigan betting record-breaking revenues – and subsequent state tax windfall – will undoubtedly have caught the attention of lawmakers in other states open to replicating Michigan’s success.

With states including neighboring Illinois, as well as those further afield including Florida, Maryland, and Virginia, all bordering on relaxing the rules on online casino gaming, ESI examines which states are most likely to give the sector the green light in 2025.

It’s no secret that Illinois lawmakers are keen to expand upon the existing gambling laws having introduced a number of online casino bills throughout 2024. Nevertheless, not one of these bills actually made it past committee discussion, highlighting the legislative resistance in the halls of power.

This comes in spite of Illinois’ thriving sports betting industry, where advocates for iGaming expansion face an uphill battle in 2025, fighting off continued concerns of market cannibalization of existing sports betting revenues and in-person casinos.

Maryland is a viable option for legalizing iGaming in 2025, with the success of online sports wagering in the state fuelling renewed discussions. Key to this will be the proposed tax revenues generated in order to mirror Michigan’s funding of state-wide education and infrastructure projects.

With strong support both within the industry and from local officials, Maryland is anticipated to open its doors to iGaming this year as a way to counter the loss of tax revenues leaving the state through offshore wagering sites.

Unlike most other states, Florida’s gambling industry is predominantly controlled by the Seminole Tribe, the result of which means any expansion of online casinos will be dependent on the motion gaining tribal approval. Still, should the Seminoles sense iGaming to be a viable additional revenue stream, negotiations between both the tribe and Florida state officials could possibly secure a breakthrough later this year.

That being said, there remain a number of legal challenges and regulatory hurdles that need to be overcome. Yet, with the lucrative sports betting market already in place, Michigan’s success story is a compelling argument for Florida tribal members and lawmakers to continue to push for legalization in 2025.

Backed by Virginia’s successful rollout of online sports betting in 2021, there has been a sizable momentum shift towards introducing online casino gaming in the state. So much so, that last month Senator Mamie Locke filed a legislative bill to expand the state’s gambling framework to include digital casinos and slot games by in-state operators.

However, Senator Locke’s proposal has since been put on hold, which despite a suggested 15% tax rate on iGaming revenue, means the approval to grow online gambling further is unlikely to happen until 2026 now.