Michiganders are leading the country in online gambling as the state saw a record $1.92 billion in revenue in 2023.

The American Gaming Association released a report last week on the amount of revenue garnered from online and in-person gambling across the country. Total revenue reached a record $66.52 billion last year from land-based casino games, sports betting and online gambling, a 10% increased over 2022’s revenue.

Michigan ranks top in the nation for money made on online gambling with New Jersey coming in close second.

The state generated approximately $3.6 billion in total gambling revenue, of which more than half originated from online gambling games such as slots, blackjack and roulette. Gaming officials report an additional $435 million was derived from in-state sports betting, with a significant portion also occurring online.

“We’ve seen a really big shift since the pandemic in terms of how people are gambling — people are gaming a lot more online today than they used to,” said David Foreman, vice-president of research at the American Gaming Association.

The report excludes tribal gaming revenue generated by Michigan’s 23 Native American-owned casinos, which are regulated by the National Indian Gaming Commission and corresponding tribal communities.

According to the American Gaming Association’s data, revenue for online gambling in the state jumped by 22% from 2022 to 2023. Foreman credits the trend to more people using their smartphones for entertainment.

“It’s a different experience for people; the online gaming experiences is enticing for folks who aren’t able to make it or travel to a casino,” he said.

Michigan is one of six states in the country that has legalized online gambling.

While there was a nearly 3% decrease in revenue made from casinos in Michigan last year, following a 47-day strike at Detroit’s casinos. Foreman said more younger people are visiting casinos than before the pandemic.

“The average age of a person you see on a casino floor today is almost eight years younger than it was in 2019,” he said.

Despite 2023’s labor dispute, revenue from Detroit’s land-based casinos surpassed $1.24 billion. The city’s gaming market ranks eighth highest in the nation.

State taxes generated from gambling revenue also reached record levels last year with more than $369 million.