Table of Contents
Sports betting is legal in both Michigan and Illinois. Online casinos are legal in Michigan but not in the land of Lincoln. Interestingly, Illinois has recorded a much higher betting handle ($14.17B) than the Great Lake States ($6.8B) since sports betting became legal in 2018.
Michigan hit a $1 billion revenue in its first full year of legalizing mobile betting in 2021. It took Illinois slightly more than a year, but it eventually hit the mark. And as mentioned, Illinois does not support online casinos.
In this guide, we’ll explain what Illinois can learn from Michigan’s gambling industry. And maybe, the Land of Lincoln could surpass Pennsylvania to become one of the top three biggest mobile betting markets in the US after New Jersey and Nevada.
MI’s Online Casino Market is a Success
Michigan’s online casino market is thriving two years after it became legal. The Great Lakes State first legalized casinos on January 2021. Two years later, the sector is one of the biggest contributors to the state’s gambling income.
To provide perspective, online casinos generated $1.1 billion in 2021, while sports betting brought in $292.2 million. The explanation is straightforward. Casinos have higher profit margins than sportsbooks.
In Illinois, sportsbooks have been setting new all-time handle records nearly every month. Last July, Illinois joined Nevada, New Jersey, and Pennsylvania as the only states to have generated more than $1 billion in operator revenue since PASPA was struck off.
Although it’s a great milestone for the state, Illinois would probably be doing much better had it legalized online casinos. Both NJ and PA support all forms of online gambling, while NV allows online poker.
Players Love MI Online Casinos
One of the things that stand out from MI’s online casino space is that the reception from gamblers has been phenomenal. People love the casino sites licensed to operate in the state.
There are a few explanations. First, MI online casino sites are safe and trustworthy. The operators encrypt players’ data using world-class encryption techniques like SSL. Additionally, they offer a wide range of account protection tools, from passwords to 2-Factor Authentication.
Then there are games. Similar to Las Vegas, MI, casino sites are armed with hundreds of slot machines and table games. You can play some of these games—poker, blackjack, and baccarat—with your friends through live casino software.
In other words, Illinois can achieve the same level of success as Michigan is experiencing. Sure, the state government isn’t ready to expand its betting market. But the people of Illinois most probably already want a legal online casino environment.
Legal Online Casinos are Dominating Black Market Operators
One of the reasons Illinois legalized sports betting was to deal a blow to offshore sportsbooks. It succeeded. Michigan had the same goal. And because it also legalized online casinos, few people in Michigan use overseas-based casinos now.
Offshore casinos aren’t better than American casinos. But people still use them in Illinois because of the lack of a better option. In Michigan, foreign casinos are losing popularity to homegrown operators.
What’s the difference between US-based and foreign casinos? The biggest difference is safety. When you bet at a Michigan casino, you’re certain it’s licensed and genuine.
You can read reviews to learn about its reputation. If you want to, you can visit the operator’s offices. Another way of putting it is that your money and data are safe.
The same can’t be said about offshore operators. Some of them are great. But most of them can’t be trusted. The worst part is that they’re not entirely legal in the US. If they scam you, there’s nothing you can do about it.
Both States Have Land-Based Casinos
Illinois is yet to legalize online casinos because it’s afraid online operators might provide unfair competition to their land-based counterparts. This might have been a genuine concern if there were states in which online casinos bankrupted bricks and mortar operators.
So far, the story has been online casinos, complete bricks and mortar casinos. A study done in New Jersey in 2019 showed that mobile casinos were actually encouraging more people to visit land-based casinos.
People who had never gambled in their lives would try the experience online. If they loved it, they would visit a land-based casino as well. This is also happening in Michigan.
People who’ve always enjoyed physical casinos still drive to MGM Grand Detroit, Greektown Casino, and Motor City Casino. Others bet at tribal casinos like Fire Keepers, Bay Mills, and Four Winds Hartford.
Nearly the Same Income and Population Levels
The average individual income in Illinois is $34,489. In Michigan, the figure is slightly lower at $30,723. For clarity, these figures were recorded in 2020. Population-wise, the Land of Lincoln has two million more people (12M) than the Great Lakes State (10M).
Why do these figures matter? They reveal both states’ revenue potential. MI has been generating more tax income compared to Illinois. And the difference has been significant.
In 2021, MI generated $249 million in taxes from the online gambling industry. The Prairie State made over $84.7 million from mobile sportsbooks alone. If Illinois were to legalize casino sites, it could overtake Michigan with ease.
Fast Growth Rates
Illinois shares one thing in commonality with Michigan. Both states have gambling industries growing rapidly. As already mentioned, MI achieved over $1 billion in gambling revenues within one year.
Illinois took more than a year to hit $1 billion. But it’s now one of the best-performing betting markets in the country. It’s doing better than Michigan. And during certain months of 2022, the Prairie State generated more revenues from sports betting than both Nevada and New Jersey.
Overall, Illinois is expected to overtake Pennsylvania in terms of total betting handle in 2023. PA has collected over $16 billion worth of bets since 2019. Illinois has recorded $15 billion.
It will take a while for Illinois to get to NV and NJ’s levels, though. These two states have lifetime betting handles of more than $26 billion each.