Michigan’s online gaming and sports betting industry took a step back in February, reporting a total of $268.5 million in combined gross receipts. This figure reflects an 18.9% decline compared to January, when operators saw record-breaking numbers. However, when looking at the bigger picture, the market still shows strong long-term growth, as iGaming adjusted gross receipts increased by 22.9% year-over-year, with sports betting adjusted gross receipts also rising by $14.3 million compared to February 2024.

A closer look at the data reveals that iGaming gross receipts totaled $222.5 million, down from January’s $248.2 million. Meanwhile, gross sports betting receipts fell to $46 million, a sharp drop from the $83 million recorded in the previous month. This seasonal dip aligns with historical trends, as February typically sees lower betting activity following the NFL playoffs and Super Bowl, which had driven higher engagement in January.

Despite the decline in revenue, Michigan’s online casinos continue to attract players through enticing casino bonuses and promotional offers. Many operators strategically use these incentives to sustain player engagement, even during slower months. For example, international platforms provide new players with additional rewards upon signing up, such as the Mega Dice bonus, helping to keep online gaming activity steady. With promotions like these, operators maintain customer interest and encourage consistent participation throughout the year.

The state’s total sports betting handle–the amount wagered by players–was $379.8 million in February, reflecting a 31.6% decline from January’s $555.2 million. While this drop may seem concerning at first glance, it is a typical post-Super Bowl trend seen across multiple states. Interestingly, Michigan’s sports betting market remains strong on an annual basis, with continued growth compared to February 2024.

In terms of tax revenue, gaming operators contributed $43.8 million to the state in February. iGaming taxes and fees made up $42.3 million, while fees and taxes for internet sports betting accounted for $1.5 million. Detroit’s three commercial casinos–MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown–paid $12.1 million in municipal taxes and fees. Additionally, tribal operators contributed $4.7 million to their governing bodies, reinforcing the significant economic impact of Michigan’s gaming industry.

One major trend shaping Michigan’s iGaming sector is the increasing popularity of live dealer games. These games, offered by providers, allow players to experience a real casino atmosphere by interacting with live dealers in real-time. This immersive experience has attracted a growing number of players who prefer the social and interactive aspect of live-streamed blackjack, roulette, and baccarat over traditional digital versions.

Besides game selection, operators have also improved player engagement through loyalty programs. Many gaming platforms now offer comprehensive rewards programs that allow players to accumulate points, which can be redeemed for various perks, such as free bets, cashback rewards, and exclusive VIP experiences. These incentives encourage long-term engagement and help operators retain their customer base, even during slower months.

Looking ahead, March is expected to bring a surge in sports betting activity, largely fueled by March Madness. The NCAA men’s and women’s basketball tournaments are among the biggest sports betting events of the year, with the American Gaming Association estimating that U.S. bettors will place approximately $3.1 billion in wagers on the tournament. Given this massive interest, industry analysts predict that Michigan’s total sports betting handle could exceed $500 million in March.

To capitalize on this heightened betting activity, operators are likely to roll out special promotions and bonuses. Sportsbooks will be offering boosted odds, risk-free bets, and bracket challenges to attract new users. Casinos may also introduce incentives, giving players an extra reason to stay engaged during this peak gaming period.

Despite a temporary dip in revenue, Michigan’s online gaming market remains on an upward trajectory, showing consistent year-over-year growth. The rise of live dealer games, improved loyalty programs, and strategic bonus offers has helped maintain player engagement, even during traditionally slow periods. Additionally, the upcoming March Madness tournament is expected to drive a major rebound in sports betting, potentially pushing Michigan’s sports betting handle beyond $500 million for the month.