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Online sports betting industry enters seasonal slowdown while online casinos set another monthly revenue record, according to Playinmichigan
In April, the total wagers made in online and retail sportsbooks in Las Vegas amounted to less than $400 million, marking the beginning of a seasonal decline that will persist until the start of football season. However, there was positive news as sports betting experienced substantial growth compared to the previous year. Additionally, online casinos demonstrated their resilience by generating record revenue exceeding $132.4 million, as reported by Playinmichigan, a platform that monitors gaming trends in the state.
Paul Costanzo, lead analyst for PlayInmichigan.com, highlighted the decline in sports betting during April due to the absence of football and the majority of the NCAA Tournament. He emphasized the significance of online casino revenue for operators and the state, as it provides a reliable and consistent source of income on a monthly basis.
According to official data released by the Michigan Gaming Control Board on Tuesday, wagers at Michigan’s online sportsbooks amounted to $371.2 million in April. This figure marks a significant increase of 48.6% compared to the $249.9 million in bets placed in April 2021. However, there was a decline of 17.8% from the $451.6 million wagered in March. When considering the retail wagering at Detroit-area casinos, which amounted to $24.8 million and was released last week, the total wagering in Michigan for April reached $396.0 million. This combined figure represents a 44.4% increase from the $274.2 million wagered in April 2021.
Last month, online sportsbooks recorded a significant increase in gross revenue, earning $30.7 million. This marked a 50.5% surge from the $20.4 million generated in April 2021 and a slight rise from the $30.5 million earned in March. Adding the $1.9 million in retail revenue, Michigan’s sportsbooks accumulated a total of $32.6 million in winnings for the month. After deducting promotional credits, the combined revenue from retail and online sportsbooks amounted to $18.6 million, resulting in $1.1 million in state and local taxes.
Costanzo mentioned that the current struggles of all four major professional sports teams in the Detroit area are adversely affecting the betting volume. He noted that the NBA Playoffs, the Final Four, and the first month of baseball managed to provide some betting options that generated general interest and kept bettors engaged during April. However, as the summer months progress and NBA games become less frequent, along with the Tigers consistently losing at a high rate, the betting market is expected to gradually decline.
In April, FanDuel emerged as the leader in both online and retail sportsbooks, accumulating $118.4 million in wagers, a decrease from the $140.1 million recorded in March. The bets placed in April resulted in $15.6 million in gross revenue. BetMGM secured the second position in the state, with $89.7 million in online wagers, down from $108.1 million in March. BetMGM generated $7.3 million in gross revenue from bets made last month.
In terms of online bets, DraftKings observed a decline from $102.9 million in March to $78.1 million, securing the third position. The company generated $3.8 million in gross revenue from its online bets.
In April, the attention of sportsbooks starts to shift. Although football brings in a substantial amount of betting activity and provides an avenue for acquiring new customers, sports such as golf and baseball tend to yield higher profits per dollar wagered for sportsbooks.
Eric Ramsey, an analyst for the PlayUSA.com Network, including PlayInmichigan.com, highlighted the potential for operators to increase their winning percentage through wagers like baseball parlay betting and major golf tournaments, even during a period of decreased overall betting activity. In contrast, during football season, operators focused on attracting new customers by aggressively promoting their services, taking advantage of the widespread popularity of football.
Online casinos and poker
In April, Michigan’s online casinos and poker rooms experienced a surge in popularity, resulting in a remarkable revenue of $132.4 million for the month. This surpasses the previous record of $131.7 million generated in March by a slight margin of 0.5%. Comparing year-over-year, the online casino revenue witnessed a significant increase of 39.5%, rising from $94.9 million in April 2021.
In April, the daily revenue of online casinos increased to $4.4 million, surpassing the previous month’s earnings of $4.2 million per day. Consequently, the state collected a total of $33.6 million in taxes and fees from the revenue generated in April.
Ramsey stated that based on the first four months of the year, it is evident that Michigan’s online gaming industry still has significant room for growth. Despite economic challenges, the industry is expected to continue expanding throughout the year and possibly beyond.
Other highlights from April:
- BetMGM was the top-performing online casino and poker operator, raking in $50.0 million in gross gaming revenue and contributing $13.2 million in state and local taxes.
- FanDuel came in second place, raking in $21.0 million in gross receipts and contributing $5.5 million in state and local taxes.
MI online sports betting revenue, April 2022
| Licensee | Online Brand | Total Handle | Online Handle | Retail Handle | Revenue (GGR) | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|---|---|---|
| MotorCity | FanDuel | $123,355,677 | $118,409,389 | $4,946,288 | $16,195,416 | $4,080,485 | $700,748 | $461,432 |
| MGM Grand Detroit | BetMGM | $94,456,412 | $89,711,994 | $4,744,418 | $7,695,507 | $3,873,722 | $216,208 | $147,527 |
| Bay Mills | DraftKings | $78,053,853 | $78,053,853 | ? | $3,848,113 | $2,092,815 | $0 | $0 |
| Greektown | Barstool | $46,418,114 | $31,323,134 | $15,094,980 | $2,034,563 | $319,404 | $81,689 | $72,418 |
| Grand Traverse | Caesars | $26,551,283 | $26,551,283 | ? | $1,169,963 | $2,232,525 | $0 | $0 |
| Lac Vieux Desert | PointsBet | $10,223,738 | $10,223,738 | ? | $842,100 | $537,680 | $0 | $0 |
| Little River | BetRivers | $6,543,431 | $6,543,431 | ? | $261,748 | $260,814 | $0 | $0 |
| Little Traverse Bay | Fox Bet | $2,599,239 | $2,599,239 | ? | $215,312 | $57,995 | $11,325 | $0 |
| Sault Ste. Marie | WynnBet | $2,435,437 | $2,435,437 | ? | $190,930 | $134,380 | $4,750 | $0 |
| Nottawaseppi Huron | FireKeepers | $1,422,648 | $1,422,648 | ? | -$22,050 | $94,300 | $0 | $0 |
| Hannahville | TwinSpires | $1,154,696 | $1,154,696 | ? | $48,744 | $5,363 | $0 | $0 |
| Keweenaw Bay | Golden Nugget | $1,070,460 | $1,070,460 | ? | -$36,064 | $37,886 | $0 | $0 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $944,224 | $944,224 | ? | $118,150 | $159,364 | $0 | $0 |
| Pokagon | Four Winds | $493,334 | $493,334 | ? | $27,513 | $110,379 | $0 | $0 |
| Saginaw Chippewa | Eagle | $287,273 | $287,273 | ? | $40,547 | $64,431 | $0 | $0 |
| Total | $396,009,819 | $371,224,133 | $24,785,686 | $32,630,491 | $14,061,543 | $1,014,720 | $681,377 |
MI online casino revenue, April 2022
| Licensee | Brand | Revenue | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|
| MGM Grand Detroit | BetMGM | $49,983,301 | $4,998,330 | $8,817,054 | $4,341,050 |
| MotorCity | FanDuel | $21,027,925 | $2,102,793 | $3,709,326 | $1,826,275 |
| Bay Mills | DraftKings | $19,412,955 | $1,941,296 | $3,913,652 | $978,413 |
| Little River | BetRivers | $8,867,541 | $886,754 | $1,787,696 | $446,924 |
| Keweenaw Bay | Golden Nugget | $6,234,209 | $623,421 | $1,256,816 | $314,204 |
| Grand Traverse | Caesars | $5,860,151 | $586,015 | $1,181,407 | $295,352 |
| Greektown | Barstool | $5,201,136 | $520,114 | $917,480 | $451,719 |
| Sault Ste. Marie | WynnBet | $4,402,452 | $440,245 | $887,534 | $221,884 |
| Pokagon | Four Winds | $3,070,583 | $307,058 | $509,924 | $127,481 |
| Little Traverse Bay | Fox Bet | $2,706,536 | $270,654 | $459,867 | $114,967 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $2,013,156 | $201,316 | $320,846 | $80,212 |
| Nottawaseppi Huron | FireKeepers | $1,347,794 | $134,779 | $197,341 | $49,335 |
| Lac Vieux Desert | PointsBet | $986,290 | $60,045 | $148,199 | $37,050 |
| Hannahville | TwinSpires | $925,871 | $15,113 | $145,721 | $36,430 |
| Saginaw Chippewa | Eagle | $398,111 | $39,811 | $57,328 | $14,332 |
| Total | $132,438,012 | $13,127,743 | $24,310,193 | $9,335,627 |
