In a recent report by the Michigan Gaming Control Board (MGCB), it was revealed that online gambling revenue in the state had seen a significant increase both year-on-year and month-on-month. The growth was primarily driven by the igaming sector, with gross receipts and gross online sports betting receipts from commercial and tribal operators totaling $224.0m in August, showing a 27.7% increase from the previous year and a 1.4% increase from July.
According to data published by the MGCB, igaming accounted for $196.7m of the total revenue in August, marking a substantial 29.2% growth compared to the previous year. Gross sports betting receipts also saw a notable increase of 18.1% to reach $27.4m for the month.
The MGCB also provided figures for adjusted gross receipts (AGR), which take into account promotional spending in Michigan. In August, the total AGR for the state’s online gambling market was $193.2m, reflecting a 26.2% rise from the previous year. Of this amount, $176.9m came from igaming, representing a 30.9% year-on-year increase, while sports betting AGR reached $16.3m, up 2.5% from the previous year.
In terms of sports betting handle, the numbers were equally impressive, with a total of $280.1m recorded, showing a significant 28.2% increase from the previous year. The initial gross total hold was calculated at 9.78%, while the adjusted figure showed a hold of 5.82%.
Operator performance in the online gambling market also saw some noteworthy trends, with BetMGM leading the way in igaming with $52.5m in gross receipts and $47.2m in AGR. FanDuel and MotorCity Casino followed closely behind with $48.4m and $43.5m in gross receipts and AGR respectively, while DraftKings and the Bay Mills Indian Community secured the third spot with $36.6m and $32.9m.
When it came to sports betting, FanDuel maintained its lead with gross receipts of $11.1m and AGR of $7.6m in August, with a handle of $101.0m. DraftKings came in second with $7.6m in gross receipts, $4.4m in AGR, and a monthly handle of $78.1m, while BetMGM followed with $4.6m in gross receipts, $2.9m in AGR, and a handle of $41.2m.
Monthly state taxes generated from online gambling totaled $37.8m, with $36.9m coming from igaming and $874,501 from sports betting. Taxes paid to the City of Detroit amounted to $9.4m, including $9.1m from the igaming market and $287,107 from sports betting, while Tribal operators contributed an additional $4.6m to governing bodies in August.
In the commercial land-based casino sector, aggregate revenue in August reached $112.5m, showcasing a 7.3% increase from the previous year and a 5.8% increase from July. Table games and slots revenue saw a healthy climb of 5.9% to $110.8m, while sports betting qualified adjusted gross receipts (QAGR) skyrocketed by 427.7% to $1.7m. Players spent $9.6m on sports betting, indicating a hold of 17.7%.
Overall, the numbers reported by the MGCB reflect a thriving online gambling market in Michigan, with both igaming and sports betting playing a significant role in driving revenue growth for the state. The performance of key operators and the steady increase in tax contributions further underscore the positive impact of the online gambling industry on Michigan’s economy.
