Michigan sportsbooks join online casinos in making September gains

Michigan

Michigan has become the latest state to witness an NFL uplift through September, as the region’s sports betting ecosystem joined igaming in making significant gains during the month.

This has seen the jurisdiction join New Jersey and Pennsylvania as the only three states to ever produce $100m in revenue over the course of a month.

A primary reason for the increases, say analysts, is the expansion of gaming options, including live dealer online casino games, which continue to grow in popularity after launching in late July.

As Michigan online casinos and poker rooms surged to a record $102.4m during the month, shattering August’s $97.2m, with its per day total reaching $3.4m (August: $3.1m). This produced $18.9m in state taxes and $5.2m in local taxes.

BetMGM/MGM Grand Detroit led the online casino and poker market with $40.6m in gross gaming revenue, which yielded $7.2m in state taxes

“Live dealer games have pushed online casino gaming to a new level,” said Eric Ramsey, an analyst for PlayUSA

“The state’s industry will almost certainly reach $1bn in revenue in its first year of existence, which is a remarkable milestone for such a young market.”

Furthermore, online sportsbooks accepted $354.3m in bets in September, up 84.2 per cent from $192.3m in August but falling shy of the online record of $359.5m set in March.

However, when combined with $32.5m in retail wagering at Detroit-area casinos that was announced last week, Michigan’s online and retail sportsbooks accounted for a record $386.8m in wagering.

Gross gaming revenue from online betting rose 49 per cent to $23.7m from $15.9m. Combined with $3.5m in retail revenue, sportsbooks won a total of $27.1m for the month, a rise of 54.7 per cent from $17.5m in August. 

Gross income from online betting produced $17.4m in taxable revenue, yielding $690,271 in state and local taxes.

DraftKings topped the online market for the second consecutive month with $106.9m in wagers, yielding $3m in gross gaming revenue.

FanDuel was second with $82.1n in wagers, producing $7.2n in gross sports betting revenue. BetMGM generated an $81.8n handle and topped the market with $8.8n in revenue.

“DraftKings, FanDuel, BetMGM and other operators have been extremely aggressive in using football to push for new customers,” added Matt Schoch, an analyst for PlayMichigan

“September’s growth shows that those promotional efforts are paying off, and that will help expand the market even after the football season ends.”