Michigan’s Online Sportsbooks, Casinos Soar To Fresh Records
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Online sportsbooks end first year with $4 billion in wagers while online casinos surpass $1 billion in annual revenue, according to Playinmichigan
Michigan’s online casinos and sportsbooks had a remarkable end to 2021, setting new records with over $500 million in sports wagers for the second consecutive month and more than $120 million in online casino revenue. These December results perfectly capped off a year that saw the debut of online sports betting and online casinos in Michigan. Throughout the year, these platforms generated an impressive $4 billion in sports bets and over $1 billion in gross gaming revenue from online casinos, as reported by Playinmichigan, an organization that monitors gaming advancements in the state.
According to Matt Schoch, lead analyst for PlayInmichigan.com, bettors experienced greater success with their bets compared to November. However, he also noted that it was still one of the most successful months for Michigan’s sportsbooks. Schoch highlighted the impressive performance of online sports betting and casinos in their inaugural year, particularly online casinos. He further emphasized that the past four months have truly emphasized the success of the first year in sports betting.
According to data released by the Michigan Gaming Control Board on Tuesday, online sportsbooks in Michigan generated $484.6 million in December, surpassing the previous record of $473.8 million set in November. In addition to this, Detroit-area casinos reported $30.1 million in retail wagering, bringing the total wagering for the month to $514.6 million for both online and retail sportsbooks. This represents a 2.8% increase from the previous record of $500.5 million in November.
Despite a slight decrease, gross revenue remained relatively high. In December, online sportsbooks earned $34.8 million, a 35.8% decrease from the record-breaking $54.1 million in November but still the second-highest in the state’s history. Additionally, Michigan’s sportsbooks earned $1.2 million in retail revenue, bringing the total for the month to $35.9 million, a 38.9% decrease from November’s $58.8 million. After accounting for promotional credits, the taxable revenue for both online and retail wagering reached $12.0 million, resulting in $1.2 million in state taxes.
Michigan’s online sports betting and online casino gaming celebrated their one-year anniversary on January 22, delivering one of the most successful debuts in the history of the United States. Throughout the year, Michigan’s sportsbooks showcased remarkable results, generating:
- In 2021, it is estimated that the total wagers made in both online and retail platforms amounted to approximately $3.97 billion. This figure positions the state among the top five in the United States, considering states that have legalized sports betting in some capacity.
- The gross revenue amounts to $319.5 million.
- Online wagers amounted to $3.7 billion, resulting in a revenue of $292.2 million.
- There was a remarkable increase in retail wagers, reaching $310.6 million, which is a staggering 137.5% rise compared to the $130.8 million recorded throughout 2020.
- The total amount paid in state taxes equals $13.6 million.
Eric Ramsey, an analyst for the PlayUSA.com Network, including PlayInmichigan.com, emphasized that there is significant potential for growth in sports betting. He highlighted that Michigan’s bettors are still in the early stages of adopting mobile sportsbooks and online betting options like in-game wagering. At the same time, sportsbooks are continuously broadening their customer reach. Ramsey emphasized that as people become more familiar with these platforms, the market will inevitably expand.
DraftKings Sportsbook slightly outperformed FanDuel Sportsbook in December, recording $120.3 million in online wagers, a decrease from $126.3 million in November. These wagers resulted in $7.3 million in gross revenue, down from $13.1 million in November. On the other hand, FanDuel witnessed an increase in bets from $115.2 million to $119.9 million in November, but still fell short of DraftKings. However, FanDuel reclaimed its position in December as the top earner, generating $9.6 million in online revenue.
In December, BetMGM Sportsbook experienced a rise in online wagers from $100.8 million in November to $108.7 million, securing the third position in terms of the amount accepted. Consequently, these wagers resulted in a gross revenue of $9.4 million.
According to Schoch, the presence of Michigan in the Big Ten championship and the College Football Playoff semifinal gave a significant boost to sportsbooks in December. Additionally, the participation of four other Michigan schools in bowl games, along with the overall interest in college basketball and specifically Michigan State, helped sportsbooks overcome the challenges faced by the Lions and the Pistons.
A remarkable milestone is reached as online casinos and poker generate a record-breaking $1 billion in a single year.
In December, Michigan’s online casinos and poker room achieved a remarkable milestone by surpassing $1 billion in annual revenue, making it the third state in U.S. history to do so. Notably, it accomplished this feat within its first year of operation. The month of December alone witnessed an impressive gross gaming revenue of $121.8 million, marking a 13.2% increase from November’s $107.6 million. Furthermore, this figure easily surpassed the previous record of $109.7 million set in October.
In October, Michigan became one of the few states, along with New Jersey and Pennsylvania, to surpass $1 billion in annual revenue. Michigan’s online casinos contributed to this achievement by generating impressive revenue throughout the year.
- The online casino games and poker rooms generated a total of $1.1 billion in gross revenue.
- State taxes totaled $279.3 million.
Ramsey stated that while online sports betting took time to gain momentum, online casinos thrived right from the start. He mentioned that achieving $1 billion in revenue within the first year was an unexpected feat for Michigan, as no other state had achieved such a milestone before. The accomplishment was impressive and generated a substantial amount of tax revenue for the state.
Other highlights from December:
- In December, the revenue increased to $3.9 million per day, compared to $3.6 million over the 30-day period of November.
- In terms of tax revenue, December’s triumph resulted in $22.6 million for the state and an additional $8.6 million for the local taxes and shares.
- BetMGM dominated the online casino and poker industry, raking in an impressive $46.0 million in total gaming revenue. As a result, they contributed a substantial $12.1 million in state and local taxes. Meanwhile, DraftKings secured the second spot, earning $121.8 million in gross receipts and generating $5.1 million in state and local taxes.
MI online sports betting revenue, December 2021
| Licensee | Online Brand | Total Handle | Online Handle | Retail Handle | Revenue (GGR) | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|---|---|---|
| MotorCity | FanDuel | $129,225,279 | $119,889,999 | $9,335,280 | $9,512,789 | $3,643,005 | $354,002 | $226,971 |
| Bay Mills | DraftKings | $120,303,731 | $120,303,731 | ? | $7,326,019 | $5,503,956 | $153,053 | $0 |
| MGM Grand Detroit | BetMGM | $117,821,188 | $108,733,102 | $9,088,087 | $10,019,820 | $7,755,103 | $119,900 | $90,749 |
| Greektown | Barstool | $57,554,129 | $45,905,554 | $11,648,575 | $3,258,420 | $619,983 | $142,018 | $104,780 |
| Grand Traverse | Caesars | $38,448,921 | $38,448,921 | ? | $2,605,564 | $3,347,890 | $0 | $0 |
| Lac Vieux Desert | PointsBet | $28,243,093 | $28,243,093 | ? | $1,918,844 | $1,391,976 | $0 | $0 |
| Little River | BetRivers | $6,975,056 | $6,975,056 | ? | $550,026 | $430,967 | $3,917 | $0 |
| Little Traverse Bay | Fox Bet | $5,599,984 | $5,599,984 | ? | $180,910 | $114,393 | $5,587 | $0 |
| Sault Ste. Marie | WynnBet | $3,202,883 | $3,202,883 | ? | $212,685 | $79,767 | $5,655 | $0 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $2,359,918 | $2,359,918 | ? | $179,104 | $398,196 | $0 | $0 |
| Nottawaseppi Huron | FireKeepers | $1,573,171 | $1,573,171 | ? | $30,871 | $62,353 | $0 | $0 |
| Hannahville | TwinSpires | $1,471,850 | $1,471,850 | ? | $56,445 | $412,804 | $0 | $0 |
| Keweenaw Bay | Golden Nugget | $1,245,855 | $1,245,855 | ? | $53,716 | $36,669 | $1,432 | $0 |
| Pokagon | Four Winds | $605,478 | $605,478 | ? | $15,013 | $78,834 | $0 | $0 |
| Total | $514,630,536 | $484,558,594 | $30,071,942 | $35,920,227 | $23,875,896 | $785,565 | $422,501 |
MI online casino revenue, December 2021
| Licensee | Brand | Revenue (GGR) | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|
| MGM Grand Detroit | BetMGM | $45,978,066 | $4,597,807 | $8,110,531 | $3,993,195 |
| Bay Mills | DraftKings | $20,104,036 | $2,010,404 | $4,052,974 | $1,013,243 |
| MotorCity | FanDuel | $17,348,630 | $1,734,863 | $3,060,298 | $1,506,729 |
| Little River | BetRivers | $7,942,057 | $794,206 | $1,601,119 | $400,280 |
| Keweenaw Bay | Golden Nugget | $6,137,892 | $613,789 | $1,237,399 | $309,350 |
| Sault Ste. Marie | WynnBet | $4,795,191 | $479,519 | $966,710 | $241,678 |
| Greektown | Barstool | $4,761,996 | $476,200 | $840,016 | $413,579 |
| Grand Traverse | Caesars | $3,990,132 | $399,013 | $704,174 | $176,044 |
| Little Traverse Bay | Fox Bet | $2,928,619 | $292,862 | $590,410 | $147,602 |
| Pokagon | Four Winds | $2,472,381 | $247,238 | $498,432 | $124,608 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $1,522,726 | $152,273 | $248,762 | $62,191 |
| Hannahville | TwinSpires | $1,476,555 | $147,655 | $297,673 | $74,418 |
| Lac Vieux Desert | PointsBet | $1,172,026 | $7,522 | $201,794 | $50,449 |
| Nottawaseppi Huron | FireKeepers | $1,130,286 | $113,029 | $179,037 | $44,759 |
| Total | $121,760,593 | $12,066,379 | $22,589,330 | $8,558,124 |
To learn more about regulated sports betting in Michigan and access analysis, please visit PlayInmichigan.com/news. For any inquiries, you can reach out to Zack Hall from Catena Media at [email protected]
