In January, the online sports betting industry in Michigan witnessed an impressive $115.2 million in bets, with an additional $42.7 million in revenue generated by online casinos and poker sites.
During the initial 10 days of online gambling in Michigan, starting from its launch on January 22nd until the end of the month, sports bets accumulated $13.3 million in gross receipts, while internet gaming generated $29.4 million in revenue for the state.
In addition to the $35.6 million in retail sports bets made at Detroit’s three casinos in January, the Michigan Gaming Control Board received reports of $150.8 million in sports bets. It should be noted that this figure excludes the retail operations at tribal casinos, as they are not obligated to report to the MGCB.
Tax revenue impacted by launch promotions
During the initial 10 days, online gambling contributed $4.4 million in taxes and state payments. In January, the three Detroit casinos paid approximately $1.4 million in taxes and fees to the city. Additionally, tribal operators disbursed over $428,000 to the governing bodies of their respective tribes.
Promotions aimed at attracting new customers heavily influence the taxes in the early stages after a state’s launch, leading to a reduction in taxable revenues, especially in the case of sports betting.
On January 22, a total of ten sports betting operators and eight online casinos were launched. Later on January 29, the market expanded to include Fox Bet, Stars Casino, and PokerStars with the introduction of Michigan online poker. It is worth noting that the report combining internet gaming data does not differentiate the three days of online poker activity.
Barstool incorporated its online casino into its offerings on February 1st, although the January figures do not encompass it. On February 15th, Four Winds Casinos introduced online products, which will be accounted for in next month’s report as it represents its first partial month.
FanDuel leads sports betting, BetMGM leads casinos
In January, FanDuel emerged as the market leader, generating $32.6 million in sports bets, which accounted for 28.3% of the total handle. The top four operators significantly outperformed their competitors, leaving them far behind in the race.
The distribution of online sports betting revenue in Michigan is as outlined below:
| Online Sportsbook | Total Handle | Market Share |
|---|---|---|
| FanDuel | $32.6 million | 28.3% |
| DraftKings | $28.2 million | 24.5% |
| Barstool | $27.5 million | 23.9% |
| BetMGM | $22.8 million | 19.8% |
| PointsBet | $1.5 million | 1.3% |
| BetRivers | $1.1 million | 0.9% |
| William Hill | $692,319 | 0.6% |
| TwinSpires | $327,661 | 0.3% |
| WynnBet | $248,879 | 0.2% |
| Fox Bet* | $160,052 | 0.1% |
| Golden Nugget | $106,904 | 0.1% |
BetMGM dominated the internet gaming operators by generating $11.1 million in adjusted gross receipts for its online casino, accounting for a significant 37.7% market share.
Here is the revised version: The remaining distribution of revenue from online gaming is as outlined below:
| Online Casino/Poker | Total Revenue | Market Share |
|---|---|---|
| BetMGM | $11.1 million | 37.7% |
| DraftKings | $6.9 million | 23.6% |
| FanDuel | $6.6 million | 22.6% |
| Stars Casino / PokerStars* | $2 million | 6.7% |
| BetRivers | $1.4 million | 4.6% |
| WynnBet | $721,916 | 2.5% |
| Golden Nugget | $489,631 | 1.7% |
| William Hill | $122,014 | 0.4% |
| TwinSpires | $60,642 | 0.2% |
On January 29, the launch of Fox Bet and PokerStars occurred.
How does Michigan’s online gambling launch compare?
Given the limited 10-day data, it is challenging to accurately evaluate Michigan’s launch in its appropriate context.
In November, Tennessee witnessed an unprecedented achievement in its recent launch, raking in over $131 million in bets and setting new records on a national scale.
Nevertheless, the aforementioned sports betting launch was indeed significant; however, it is important to note that sports betting was officially introduced in Michigan on March 11, 2020, with the opening of two retail sportsbooks in Detroit.
Furthermore, Tennesseeans gained a significant advantage over Michigan with the Nov. 1 debut, allowing them an entire month of legalized online betting before their counterparts in Michigan.
Michigan online casinos expected to grow
Despite everything mentioned, Michigan’s online gambling scene stands out with its inclusion of 10 casino apps, making it one of the limited number of states that offer legal online casinos.
Online casinos in Michigan raked in nearly $30 million in revenue within the initial 10 days of operation. In 2013, during New Jersey’s first complete month of online casino gambling, a total gaming win of $7.4 million was recorded, involving 13 operators encompassing both poker and casino games.
On the other hand, while New Jersey’s industry was still in its infancy in the United States, Michigan’s online launch occurs at a time when internet betting generates significantly more attention and enthusiasm.
In 2021, New Jersey experienced a significant surge in online gambling revenue, reaching approximately $104 million in January. This remarkable achievement was made possible by the collaboration of 26 online casinos operating within the state. In contrast, Pennsylvania’s online casino industry, which commenced in 2019, reported a revenue of $80 million for January, generated by its 12 online casinos.
The advent of a complete month of online gambling and sports betting in Michigan is expected to significantly revolutionize the industry.
In a statement released by Richard Kalm, the executive director of MGCB, it was revealed that internet gaming operators have made a promising beginning in Michigan. Kalm expressed that the revenue generated from online gaming will contribute towards supporting K-12 students, the city of Detroit, and Michigan tribal communities through taxes and payments.
