Michigan Sportsbooks Slow In April To Less Than $400 Million In Bets, But Online Casinos Continue Momentum
Online sports betting industry enters seasonal slowdown while online casinos set another monthly revenue record, according to Playinmichigan
(LAS VEGAS) — Online and retail sportsbooks combined for less than $400 million in wagers in April, the first month of a seasonal slowdown that will last until football season begins. But April’s news was largely good, as sports wagering grew significantly year over year and online casinos continued to show their strength with record revenue of more than $132.4 million, according to Playinmichigan, which tracks gaming developments in the state.
“Without football or the majority of the NCAA Tournament, sports betting inevitably slowed in April,” said Paul Costanzo, lead analyst for PlayInmichigan.com. “One of the many reasons why online casino revenue is so important for operators and for the state, is that it produces consistently, month after month.”
Bettors placed $371.2 million in wagers at Michigan’s online sportsbooks in April, which was up 48.6% from the $249.9 million in bets in April 2021, according to official data released Tuesday by the Michigan Gaming Control Board. But bets were down 17.8% from $451.6 million in March. With $24.8 million in retail wagering at Detroit-area casinos, released last week, Michigan’s online and retail sportsbooks combined for $396.0 million in wagering in April. That was up 44.4% from $274.2 million in April 2021.
Online sportsbooks won $30.7 million in gross revenue from last month’s wagers, up 50.5% from $20.4 million in April 2021 and up slightly from $30.5 million in March. Combined with $1.9 million in retail revenue, Michigan’s sportsbooks won $32.6 million for the month. After promotional credits, retail and online sportsbooks generated $18.6 million in taxable revenue, yielding $1.1 million in state and local taxes.
“All four major Detroit-area professional franchises are struggling, which isn’t helping betting volume,” Costanzo said. “The NBA Playoffs, the Final Four, and the first month of baseball gave just enough inventory with general interest to keep bettors engaged in April. But the market will continue to cool over the summer months as NBA games become less frequent and if the Tigers continue to lose at such a high rate.”
FanDuel topped online and retail sportsbooks in April with $118.4 million in wagers, down from $140.1 million in March. April’s bets generated $15.6 million in gross revenue. BetMGM took the second spot in the state with $89.7 million in online wagers, down from $108.1 million in March. BetMGM won $7.3 million in gross revenue from last month’s bets.
DraftKings was third with $78.1 million in online bets, down from $102.9 million in March. DraftKings won $3.8 million in gross revenue from its online bets.
Sportsbooks’ focus begins to shift in April. While football generates significant volume and an opportunity to expand to new customers, sports like golf and baseball tend to be more profitable per dollar bet for sportsbooks.
“With wagers such as baseball parlay betting and major golf tournaments, operators have an opportunity to win a higher percentage of their bets even as overall volume slows,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayInmichigan.com. “Contrast that to football season, which brought enormous volume but also included aggressive promotion as operators try to use the ubiquitous appeal of football to acquire new customers.”
Online casinos and poker
The appeal of Michigan’s online casinos and poker rooms continued to grow in April, generating a record $132.4 million in revenue over the month. That topped the record $131.7 million in revenue generated in March by 0.5%. Year-over-year, online casino revenue rose 39.5% from $94.9 million in April 2021.
Online casinos generated $4.4 million in revenue per day in April, up from $4.2 million per day in March. April’s revenue generated $33.6 million in state taxes and fees.
“The clear take away from the first four months of the year is that Michigan’s online gaming industry isn’t close to reaching its ceiling yet,” Ramsey said. “Even with headwinds affecting the wider economy, that growth should continue through at least the end of the year and likely well after.”
Other highlights from April:
- BetMGM led all online casino and poker operators with $50.0 million in gross gaming revenue, yielding $13.2 million in state and local taxes.
- FanDuel took second with $21.0 million in gross receipts, generating $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 |
Related Articles
