The gambling industry in the United States has undergone a transformative change that has persisted for five years.
The Professional and Amateur Sports Protection Act, a federal statute that had been in place for 26 years, was invalidated by the US Supreme Court on May 14, 2018. Consequently, states were granted the authority to legalize sports gambling as the ban was lifted.
Since its inception in 2020, legal sports betting in Michigan has generated a staggering $10 billion in sports betting wagers, resulting in an impressive revenue of over $859 million for the operators involved.
Despite the impressive numbers that Michigan has achieved, the unregulated and offshore betting that persists remains a significant issue for not only the state but also the entire nation.
A recently released report by the American Gaming Association reveals that numerous Americans continue to engage in illegal betting, often without their knowledge.
Illegal gambling awareness still a concern in US, Michigan
Illegal gambling remains one of the prominent concerns ever since the initiation of legalized sports betting.
Although there has been improvement in those numbers over the years, they are still a cause for concern.
According to the AGA report, the number of American adults who are uncertain about the legality of online sportsbooks in their state has decreased by 45% since 2018, now standing at only 29%.
Nevertheless, a staggering 70% of sports bettors, who predominantly wager with illegal operators, were under the false impression that they were engaging in legal sports betting activities. Shockingly, more than half of them believed that the majority of their bets were placed through legitimate channels.
It is noteworthy that legal online sports betting’s market share has increased from 44% in 2019 to 77% in 2025, which is quite encouraging.
Misinformation, search engines leading to illegal betting confusion
Unregulated sportsbooks pose a challenge due to their capability to deceive users by presenting themselves as regulated sportsbooks.
A potential user can easily get confused by search engines or websites that promote online sports betting.
In Michigan, as well as across the country, there has been a prevalent issue of inadequate gambling literacy among bettors. This problem particularly affects the younger demographic, specifically individuals aged 18-24.
As a component of the AGA survey, respondents were posed with the question: “Which aspects of an online sportsbook make you believe that it is regulated?”
This is how the responses ended up being.
- Given that the online sportsbook is associated with a casino in the United States, 40%
- 38% of people believe that placing sports bets in online sportsbooks is legal.
- Approximately 37% of individuals have witnessed the website or its betting lines being referenced on television or other forms of media.
- 36% of users have noticed that the website or mobile app is affiliated with a US state.
- 36% of people view credit card companies as accepted forms of payment.
- 32% is a representation of robust data encryption and privacy measures.
- 32% of players are encouraged to play responsibly.
- 32% of people discover that it is legal by conducting a Google search or referring to review websites.
- A user experience that is well-designed accounts for 30% of the overall success.
- 27% of people reported that they observed the logos of the sports teams and leagues.
Each online sportsbook in Michigan is associated with either a tribal or commercial casino within the state. The app or homepage of the desktop version will prominently display the logo of the corresponding casino.
Search trends show Michigan bettors looking for legal gambling options
Google trends indicate that residents of Michigan, since the legalization of online gambling, have been displaying an increased interest in exploring legal alternatives.
The following graph illustrates the search volume trends for the leading online sportsbook and online casino operators in Michigan, namely BetMGM, FanDuel, and DraftKings, over the past five years. Additionally, it displays the search data for one offshore site within the same timeframe.
This is great news for the MGCB and legal operators in the state, which comes as no surprise given the marketing efforts of these online gambling giants and their growth since their launch in January 2021.
However, it is evident that there is more work that needs to be done, which becomes apparent when examining trends beyond Michigan’s Big 3. The search traffic for offshore sites begins to narrow the gap with other online sportsbooks in the state.
Michigan part of group urging DOJ crackdown on illegal gambling
In April, the Michigan Gaming Control Board joined forces with six other state regulators to implore the Department of Justice to take action against illegal and offshore sportsbooks and online casinos.
Colorado, Illinois, Louisiana, Mississippi, New Jersey, and Nevada all joined Michigan.
According to the AGA, the United States loses billions in potential tax revenue due to an estimated $511 billion being illegally gambled each year.
One of the main factors consumers shared with the AGA for their shift towards illegal sportsbooks is the absence of regulated sports betting or legalized online casinos in their state.
It is clear that this is not a problem in Michigan, as the gambling industry generated close to $2 billion in tax revenue for the state in 2022.
Support strong for legalized sports betting
According to the AGA report, the majority of Americans believe that the decision made five years ago regarding PASPA was the right one.
In the survey, it was found that the approval rate among American adults for the Supreme Court’s decision to invalidate PASPA has risen from 63% in 2019 to 85%.
Furthermore, a staggering 77% of American adults are in favor of the legalization of marijuana within their own state.
Over the past year, the online sports betting market in Michigan has experienced a slight plateau.
The online handle experienced a 24.5% growth between 2021 ($3.66 billion) and 2022 ($4.55 billion). However, the Q1 online handle for 2025 ($1.23 billion) has decreased by 8.8% compared to Q1 of 2022 ($1.35 billion).
Michigan’s history with legalized sports betting
In a swift effort to legalize sports betting, Michigan pushed for speedy action. The bill was successfully passed by the state legislature in December 2018. Regrettably, the outgoing Governor Rick Snyder chose to veto it.
A year later, a set of bills legalizing online gambling, sports betting, fantasy sports, and online poker was passed by lawmakers in Michigan.
The bills were signed into law by Gov. Gretchen Whitmer on December 20, 2019, enabling tribal and commercial casinos to seek licenses for sports betting and online gambling.
Michigan’s inaugural retail sportsbooks made their debut in Detroit on March 11, 2020. Within a day, all three Detroit casinos had established their own retail sportsbooks. Unfortunately, the progress was short-lived as the COVID-19 pandemic forced the closure of all three casinos on March 16.
Michigan initiated the release of online sports betting and online casinos on January 22, 2021. The introductory launch included a collective of ten online sportsbooks and eight online casinos.
There are currently a total of 15 operators in Michigan offering online sportsbooks and online casinos.
