Michigan's Online Gambling Market Continues to Thrive in August

The latest data from the Michigan Gaming Control Board (MGCB) indicates a robust performance from the state’s online gaming and sports betting sectors. August proved to be a standout month, particularly for the iGaming sector, which achieved its third-highest monthly revenue on record.

Significant Growth in Revenue

Michigan’s combined revenue from online gaming and sports betting in August 2024 reached an impressive $224 million, a 27.7% increase compared to the same period in the previous year. After ing for promotional spending, adjusted gross revenue (AGR) for both sectors stood at $193.2 million, up 26.2%.

The iGaming sector led the way, contributing $196.7 million to the gross revenue. This represents the third-best performance for Michigan’s iGaming industry, following only the months of March and May 2024. Compared to July, iGaming revenue increased by $5 million, or 2.8%. The overall adjusted iGaming revenue, after deducting the 10% allowed for promotions, was $176.9 million. Both gross and adjusted iGaming figures marked a roughly 30% rise from the same month last year.

From a tax perspective, iGaming was also a major contributor. Of the $37.8 million collected in combined tax revenue from online gaming and sports betting, iGaming alone generated $36.9 million.

The state’s year-to-date iGaming revenue has shown a 24.8% improvement over last year. This growing momentum has pushed Michigan to achieve a significant milestone. The Great Lakes State became the third U.S. market, following Pennsylvania and New Jersey, to sur $6 billion in all-time iGaming revenue.

Sports betting also saw notable growth in August. Online sportsbooks in Michigan handled $280.1 million in wagers, a 28.2% increase from the same month in 2023. Gross receipts for sports betting reached $27.4 million, an 18.1% year-over-year improvement. However, the adjusted gross revenue for sports betting saw a more modest 2.5% rise as operators continued heavy promotional spending.

Leading Operators in iGaming and Sports Betting

BetMGM remains Michigan’s dominant player in the iGaming sector. In August, the operator, partnered with MGM Grand Detroit, reported $52.5 million in gross revenue and $47.2 million in adjusted gross revenue.

FanDuel, which operates in conjunction with MotorCity Casino, secured the second spot with $48.4 million in gross revenue and $43.5 million in AGR. The Flutter-owned company has experienced rapid growth in the past year, with a 45.7% increase in gross gaming revenue (GGR) since August 2023. Its year-to-date iGaming growth stands even higher, at an impressive 59%.

DraftKings claimed the third position, recording $36.6 million in gross revenue and $32.9 million in adjusted revenue. Meanwhile, BetRivers and Caesars Palace each hit new monthly records, reporting $13 million and $12 million, respectively.

When it comes to sports betting, FanDuel is Michigan’s clear leader. The operator handled $101 million in sports wagers in August, resulting in $11.1 million in gross revenue and $7.6 million in adjusted revenue. DraftKings followed with a $78.1 million handle, yielding $7.6 million in gross receipts and $4.4 million in AGR. BetMGM completed the top three with $4.6 million in gross revenue and $2.9 million in adjusted revenue, from a $41.2 million handle.

The results from August highlight Michigan’s continued success in both iGaming and sports betting. The state saw a combined increase of nearly $50 million in revenue compared to the previous year, with iGaming and sports wagering contributing significantly.

Specifically, iGaming revenue for August reached $196.6 million, while gross receipts for sports betting were $27.4 million. The total internet sports betting handle hit $280.1 million, reflecting an almost $60 million rise from August 2023.

In of adjusted gross receipts (AGR), iGaming contributed $176.9 million to the state’s total of $193.2 million. Sports betting added another $16.3 million to this figure.

State operators reported a total of $37.7 million in taxes in August, of which $36.9 million came from iGaming operations. Sports betting, though smaller in contribution, still generated close to $0.8 million in taxes and fees for Michigan.

Responsible Gaming Recognition

In other state-related news, the Michigan Gaming Control Board (MGCB) recently received an Emmy Award for its “Don’t Regret the Bet” responsible gaming campaign. Launched last year, this campaign was designed to prevent problem gambling before it starts and minimize the number of individuals developing gambling addictions in Michigan.

The campaign was a collaborative effort between the MGCB, King Media, and Cutters Studios in Detroit. The MGCB earned the Michigan Chapter Emmy Award for excellence in the Graphic Arts – Motion Graphics category.

Source:

”iGaming, sports betting operators report $224.02M in August revenue”, michigan.gov, September 17, 2024.