Michigan igaming remains near $100m milestone as sports betting dips

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Online casinos in Michigan fell a fraction shy of a maiden $100m revenue month through May, as the region’s sports betting ecosystem declined once more.

Revenue at the Great Lake State’s online casinos and poker rooms hit $94.9m during May, which is even with the prior month and a slight drop from $95.1m in March. 

This equates to $3.1m per day of the 31 days of the month, down slightly from $3.2m per day over the 30 days of April.

The win produced adjusted gross receipts of $89.1m, up from $88.9m in April, and yielded $18.1m in state taxes and $7.1m in local taxes. Since January, online casinos and poker have generated $393.9m in revenue and $99.7m in state and local taxes.

BetMGM/MGM Grand Detroit led with $36.1m in gross receipts, yielding $10.6m in state and local taxes.

“Online casinos have become a powerhouse of revenue generation,” Jessica Welman, analyst for PlayMichigan, said. “Revenue has remained high, even as retail casinos around Detroit have become more accessible. 

“Looking ahead, the popularity of these games should remain — and likely expand — over the next few months, even as retail casinos’ operations continue to steady.”

Michigan sportsbooks took in $237.6m in online wagers through the 31 days of May, which fell 4.9 per cent from $249.9m over the 30 days of April. 

Combined with $20.2m in retail handle, Michigan’s online and retail sportsbooks took in $257.7m in bets. That total is down six per cent from the $274.2m recorded one month earlier.

Gross operator revenue from online betting fell 4.5 per cent to $19.5m in May from $20.4m in April, which produced $9.9m in taxable revenue, down from $10.9m, yielding $993,784 in state taxes.

The region’s 28.5 per cent decline in April handle represented the steepest among major US markets, with May’s results also lagging behind others that have reported April data, including Indiana (up 7.6 per cent) and Iowa (down 2.9 per cent).

FanDuel/MotorCity Casino led all online sportsbooks with $71.2m in wagering, down from $74.2m in April.

“Online casinos don’t face the same dramatic seasonal variances as sports betting does, so they act as a steadying force for the industry,” added Welman. 

“On the other hand, sportsbooks have been hit by the seasonality of sports betting and struggling local teams. It appears they will have to wait until the end of summer before substantial growth can be expected again.”