Michigan iCasino Revenue Adds 29% As Online Gambling Increases
LISTEN TO THIS ARTICLE:The Michigan Gaming Control Board released data indicating a robust performance in the state's online casino gaming and sports wagering sector for September, with operator adjusted gross revenue (AGR) exceeding $210 million. Notably, DraftKings achieved a record high for tribal partners in iGaming during this period.
DraftKings Leads the Way
From the $166.4 million generated by internet casino gaming, comprising contributions from three commercial operators and 15 tribal entities, Michigan witnessed the second-highest total since iGaming's launch in January 2021. This figure closely trailed the peak in March, standing at $171.8 million. Furthermore, it marked a significant 29.3% increase from the $128.7 million reported in September 2022 and a notable 9.3% improvement from August.
The state's 14 mobile sportsbooks collectively held 9.6% of a substantial $457.7 million handle, translating to $44 million in gross revenue. Prominent operators like DraftKings and BetMGM pursued bettors aggressively, both achieving adjusted gross revenue totals below 50% of their gross revenue.
The state reaped tax revenues from this thriving industry, with $1.25 million attributed to sports betting taxes. The city of Detroit, which is currently dealing with a casino workers strike, also benefited, claiming over $470,000.
Michigan, with the authority to levy taxes on $149.8 million of adjusted gross revenue from iGaming and $18.7 million from sports wagering, witnessed an influx of $31.3 million from iGaming into its coffers. The city of Detroit secured $7.5 million. Tribal entities engaged in internet casino gaming contributed more than $4 million to local jurisdictions in September, marking an unprecedented monthly high.
FanDuel a Close Second
FanDuel closely followed DraftKings in iGaming, maintaining its customary lead in online sportsbook operator revenue rankings. However, it held an 11.7% share on a handle of $144.7 million, generating $16.9 million in gross revenue.
Despite offering lucrative incentives to bettors, FanDuel's adjusted gross revenue remained less than 55% of its gross revenue. Conversely, DraftKings and BetMGM were among the eight mobile operators with adjusted gross revenue falling below 50% of their gross revenue for September.
Although none of the mobile sportsbooks experienced a monthly loss in terms of gross revenue, PointsBet and Golden Nugget reported five-figure losses in adjusted gross revenue. PointsBet, with an 8.6% hold on a $8.9 million handle, reported an AGR of -$45,000, resulting in nearly $762,000 in gross revenue.
Meanwhile, Golden Nugget, despite coming out only $9,356 ahead on $1.1 million in bets, posted an AGR of -$17,133, marking its second consecutive five-figure loss.
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