Wagering At Michigan Sportsbooks Expectedly Slows In February While Online Casinos Set State Revenue Record
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Post-football lull slows betting down to $423.8 million, but online casino revenue reaches $123 million, according to Playinmichigan
In February, Michigan’s online and retail sportsbooks experienced a slight decline in wagers, amounting to nearly $425 million. This drop, the first since July 2021, was expected due to the usual lull in sports betting activity after the football season. However, online casinos in the state saw no impact from this seasonal trend and achieved a new revenue milestone, surpassing $120 million. Playinmichigan, a platform that monitors gaming advancements in Michigan, provided this data.
According to Paul Costanzo, lead analyst for PlayInmichigan.com, Michigan sportsbooks had a strong start in 2021 and have experienced relentless growth ever since. He believes that while it may be challenging to sustain the rapid growth seen in the past year, the industry will continue to progress in the foreseeable future.
According to recent data from the Michigan Gaming Control Board, online sportsbooks in Michigan witnessed a decline in bets during February. The total amount wagered dropped by 19.8% to $398.4 million, compared to the record-breaking $496.8 million in bets placed in January. Additionally, retail wagering at Detroit-area casinos amounted to $25.4 million, bringing the combined wagering for both online and retail sportsbooks in Michigan to $423.8 million. This represents a decrease of 20.4% compared to the previous month’s figure of $532.7 million.
In spite of the decrease in momentum compared to January’s remarkable performance, February witnessed a significant surge of 30.2% in handle, reaching $325.6 million. It is worth noting that this growth was observed in February 2021, marking Michigan’s initial month of online sports betting.
The state’s year-over-year growth can be attributed to the prominence of online sports betting. In February, online wagers experienced a significant increase of 32% compared to the $301.9 million betted in February 2021.
Since the inception of legal sports betting in 2020, Michigan’s sportsbooks have amassed a staggering $5.1 billion in wagers, resulting in an impressive revenue of nearly $400 million.
In February, online sportsbooks saw a significant increase in gross revenue, generating $22.5 million, which was a 137.6% rise from the $9.5 million earned in February 2021. However, this was a decrease from the $34.7 million earned in January. When combined with a loss of $896,939 in retail revenue, Michigan’s sportsbooks had a total win of $21.6 million for the month. After deducting $26.5 million in promotional credits, both retail and online sportsbooks experienced a loss in taxable revenue, amounting to $4.8 million, resulting in only $581,548 in taxes collected.
Compared to January and March, February usually sees less activity in sportsbooks. While the Super Bowl attracts many bettors and receives significant promotion from sportsbooks, it is just a single game. In contrast, the NFL playoffs and the three-week NCAA Tournament, which offer a total of 67 games to bet on, make for a much more engaging month in terms of betting opportunities.
“The timeframe following the Super Bowl and leading up to March Madness is typically a relatively quiet period for sportsbooks,” stated Eric Ramsey, an analyst affiliated with the PlayUSA.com Network, which encompasses PlayInmichigan.com. Ramsey further added, “The upcoming NCAA Tournament has the potential to revive betting activity, surpassing the $500 million mark, and if Michigan or Michigan State unexpectedly excel, wagering could escalate even further.”
FanDuel generated the highest amount of online bets among all operators, amounting to $122.4 million, a decrease from $132.7 million in January. When considering its retail sportsbook, FanDuel accumulated $4.4 million in gross revenue from these bets. DraftKings secured the second position in the online market with $94.7 million in bets, down from $132.0 million in January. DraftKings earned $4 million in gross revenue from these bets.
In February, BetMGM saw a decline in online wagers, with a total of $86.7 million compared to $110.9 million in January. However, when considering its retail sportsbooks as well, BetMGM emerged as the top earner in the state with a gross revenue of $5.8 million.
Ramsey stated that the lockout in baseball was the primary worry for sportsbooks as it is the key draw for bettors during the typically sluggish summer period. However, now that the lockout is resolved, sportsbook operators in Michigan can anticipate the first regular sports year since the legalization of sports betting in the state.
Online casinos and poker
Despite having three fewer days in the month, Michigan’s online casinos and poker rooms achieved a record-breaking revenue of $122.8 million in February. This surpassed the previous record of $121.8 million set in December. In February, the daily revenue reached $4.4 million, a notable increase from the $3.9 million per day generated in both January and December by online casinos.
State taxes and fees brought in a total of $21.6 million in revenue for the month of February.
According to Costanzo, it is highly likely that Michigan will outpace New Jersey and Pennsylvania to become the leading online casino market in the U.S. by the year-end. He emphasizes that online casinos consistently generate significant revenue, and the industry’s contribution to the state budget will continue to expand.
MI online sports betting revenue, February 2024
| Licensee | Online Brand | Total Handle | Online Handle | Retail Handle | Revenue (GGR) | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|---|---|---|
| MotorCity | FanDuel | $126,825,828 | $122,402,376 | $4,423,452 | $4,387,579 | $3,067,765 | $101,145 | $64,850 |
| Bay Mills | DraftKings | $94,693,960 | $94,693,960 | ? | $4,000,114 | $11,115,378 | $0 | $0 |
| MGM Grand Detroit | BetMGM | $91,823,377 | $86,658,217 | $5,165,160 | $5,791,031 | $5,863,687 | $6,023 | $3,861 |
| Greektown | Barstool | $46,119,895 | $30,335,032 | $15,784,862 | $4,212,766 | $465,270 | $237,824 | $152,482 |
| Grand Traverse | Caesars | $35,283,067 | $35,283,067 | ? | $1,682,832 | $4,216,217 | $0 | $0 |
| Lac Vieux Desert | PointsBet | $10,783,875 | $10,783,875 | ? | $717,523 | $717,866 | $0 | $0 |
| Little River | BetRivers | $6,067,485 | $6,067,485 | ? | $188,533 | $324,940 | $0 | $0 |
| Little Traverse Bay | Fox Bet | $2,959,175 | $2,959,175 | ? | $90,414 | $109,843 | $0 | $0 |
| Sault Ste. Marie | WynnBet | $2,823,945 | $2,823,945 | ? | $185,386 | $21,552 | $13,762 | $0 |
| Nottawaseppi Huron | FireKeepers | $1,763,646 | $1,763,646 | ? | $97,537 | $97,732 | $0 | $0 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $1,669,968 | $1,669,968 | ? | $243,584 | $392,225 | $0 | $0 |
| Hannahville | TwinSpires | $1,250,046 | $1,250,046 | ? | $32,517 | $95,828 | $0 | $0 |
| Keweenaw Bay | Golden Nugget | $886,420 | $886,420 | ? | $72,695 | $53,641 | $1,601 | $0 |
| Pokagon | Four Winds | $817,694 | $817,694 | ? | -$69,041 | -$86,781 | $0 | $0 |
| Total | $423,768,381 | $398,394,907 | $25,373,474 | $21,633,471 | $26,455,163 | $360,354 | $221,194 |
MI online casino revenue, February 2024
| Licensee | Brand | Revenue | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|
| MGM Grand Detroit | BetMGM | $46,883,965 | $4,688,397 | $8,270,331 | $4,071,872 |
| Bay Mills | DraftKings | $20,111,744 | $2,011,174 | $4,054,528 | $1,013,632 |
| MotorCity | FanDuel | $19,477,948 | $1,947,795 | $3,435,910 | $1,691,660 |
| Little River | BetRivers | $7,869,999 | $787,000 | $1,461,997 | $365,499 |
| Keweenaw Bay | Golden Nugget | $5,740,290 | $574,029 | $959,090 | $239,772 |
| Grand Traverse | Caesars | $4,572,807 | $457,281 | $724,735 | $181,184 |
| Sault Ste. Marie | WynnBet | $4,452,628 | $445,263 | $717,850 | $179,463 |
| Greektown | Barstool | $3,641,899 | $364,190 | $504,767 | $257,300 |
| Little Traverse Bay | Fox Bet | $2,628,928 | $262,893 | $397,204 | $99,301 |
| Pokagon | Four Winds | $2,486,293 | $248,629 | $361,402 | $90,350 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $2,430,439 | $243,044 | $353,306 | $88,326 |
| Nottawaseppi Huron | FireKeepers | $1,066,976 | $106,698 | $153,644 | $38,411 |
| Hannahville | TwinSpires | $833,500 | $54,700 | $124,608 | $31,152 |
| Lac Vieux Desert | PointsBet | $578,509 | $27,441 | $88,171 | $22,043 |
| Total | $122,775,924 | $12,218,533 | $21,607,543 | $8,369,966 |
To gain extensive insights and analysis on regulated sports betting in Michigan, kindly explore PlayInmichigan.com/news. For any inquiries, reach out to Zack Hall at Catena Media via [email protected]
