Michigan: Igaming growth drives online gambling revenue increase in August

The Michigan Gaming Control Board (MGCB) reported a year-on-year and month-on-month increase in online gambling revenue in August, driven by growth within the igaming sector.

Igaming gross receipts and gross online sports betting receipts from commercial and tribal operators in August amounted to $224.0m (£170.2m/€201.5m). This is 27.7% more than last year in Michigan and 1.4% higher than in July this year.

Data, published by the MGCB Tuesday (17 September) shows igaming accounted for $196.7m of all revenue during August, up 29.2% year-on-year. Gross sports betting receipts were also 18.1% higher for the month at $27.4m.

The MGCB also sets out adjusted gross receipts (AGR), which account for promotional spending in Michigan. For August, the total for the state’s online gambling market was $193.2m, a rise of 26.2% on last year’s total.

Of this, $176.9m came from igaming, a year-on-year rise of 30.9%. In terms of sports betting, AGR reached $16.3m, up 2.5% from the previous year.

As for sports betting handle, this amounted to $280.1m, some 28.2% ahead of last year. Based on the initial gross total, hold was 9.78%, whereas for the adjusted figure, hold was 5.82%.

BetMGM, FanDuel the leaders
Looking now to operator performance, BetMGM remains the market leader in igaming. Via its partnership with MGM Grand Detroit, the operator posted $52.5m in gross receipts and $47.2m AGR.

FanDuel and MotorCity Casino placed second with $48.4m and $43.5m for gross receipts and AGR, respectively. DraftKings and the Bay Mills Indian Community took third with $36.6m and $32.9m.

As for sports betting, FanDuel remains some way out in front. In August, gross receipts hit $11.1m and AGR $7.6m, from a $101.0m handle.

In second was DraftKings with $7.6m in gross receipts and $4.4m AGR, with monthly handle at $78.1m. BetMGM followed with $4.6m and $2.9m off a $41.2m handle.

Tax-wise, monthly state taxes hit $37.8m, with $36.9m from igaming and $874,501 from sports betting. Taxes paid to the City of Detroit topped $9.4m, including $9.1m from the igaming market and $287,107 sports betting. Tribal operators paid a further $4.6m to governing bodies in August.

Detroit casino revenue edges up in August
Turning to the commercial land-based casino sector, aggregate revenue in August hit $112.5m. This total, covering table games, slots and retail sports betting, is 7.3% higher than last year and 5.8% higher than July.

Table games and slots revenue climbed 5.9% to $110.8m, while sports betting qualified adjusted gross receipts (QAGR) rocketed 427.7% to $1.7m. Players spent $9.6m betting on sports, suggesting a hold of 17.7%.

MGM remains the overall market leader in Michigan with a 48% share. MotorCity is second on 28%, then Hollywood Casino at Greektown with 24%.

As for each market, MGM tops the table games and slots with $53.9m in revenue, up 8.9% from last year. For the sports betting segment, MotorCity was the leader with $930,952 in QAGR.

The casinos paid $17.3m in gaming-related wagering taxes and development agreement payments to the City of Detroit. A further was paid $64,015 in sports betting taxes to the state and $78,241 to Detroit.