Michigan bettors spent $650.2 million on sports gambling last November, a new monthly state record, according to the Michigan Gambling Control Board.

The state is one of the top markets in the country for gambling.

Mike Lorenc is a clinical assistant professor of sports management at the University of Michigan. He says that there are three primary reasons the state betting market is so large, the first is economic.

“Michigan actually has one of the lowest tax rates on sports betting revenue, only 8.4%, which is actually the 2nd lowest in the country,” he said. “It’s one of only a handful of states…that allows iGaming, online casino, in addition to sports betting.”

Lorenc also cites a booming local sports culture, with several local teams having exciting seasons. The University of Michigan’s football team won the national championship in 2023. The Detroit Tigers and Lions made deep playoff runs, and the Red Wings had a late season playoff push. Lorenc says these events and others led to spikes in betting activity. The final factor is ubiquitous gambling advertising and promotion.

“There’s a growth and acceptance of… sports betting and really blurry lines between editorial and commercial content, especially in sports talk radio as well as TV,” he said.

Lorenc says that marketing has introduced new, young bettors into gambling.

“I’m teaching two classes on sports betting this coming semester. They were extremely popular, oversubscribed, so there’s a high interest. Most of my students, especially males, are active sports betters,” Lorenc said.

Lorenc says that backlash to widespread sports betting advertising might lead to regulation. He cited instances of advertising regulation being implemented in Canada and the United Kingdom. He cited gambling companies being featured on team uniforms in the UK as sparking calls for more responsible advertising.

“It became almost like this aha moment,” Lorenc recalled. “Like how can we not regulate it if little kids are not only being exposed to it but actually are becoming walking billboards for some of those sports betting companies,” Lorenc said.

According to the Michigan Gambling Control Board, gambling tax revenue generated over $500 million for the school aid fund last year.

“I would anticipate in the next, let’s say three to six years, more of a regulation, especially when it comes around to college athletes,” Lorenc added.