In February 2024, Michigan’s gaming industry navigated through a series of shifts in revenue patterns, with notable impacts on internet gaming and sports betting sectors. Despite an overall decline in revenue compared to January, specific segments exhibited promising growth.
Overview of Revenue Trends:
Michigan’s gaming industry reported a combined total of $218.5 million in gross receipts from internet gaming and sports betting activities in February, marking a 4.8% decrease from the previous month. However, beneath this headline figure lie nuanced trends within individual sectors.
Internet Gaming Performance:
The internet gaming sector emerged as a beacon of growth, with gross receipts surging to $188 million in February. This figure represented a significant uptick from the previous high of $181.9 million observed in January. Adjusted Gross Receipts (AGR) from internet gaming stood at $169.2 million, reflecting a commendable 3.1% increase from January and an impressive 27% surge from February 2023.
Sports Betting Dynamics:
Conversely, the sports betting segment witnessed a decline in gross receipts, amounting to $30.5 million in February, down from $47.7 million in January. Despite this setback, sports betting AGR exhibited resilience, registering a notable 52.7% increase compared to February 2023. However, the internet sports betting handle experienced a significant downturn of 30.3% from January 2024, totaling $402.6 million.
Tax Contributions and Payments:
Operators demonstrated their commitment to fiscal responsibilities by contributing $34.7 million in taxes and payments to the State of Michigan in February. Additionally, the three Detroit casinos upheld their civic duties by remitting $9.3 million in wagering taxes and municipal services fees to the City of Detroit. Tribal operators also played their part, making payments totaling $3.9 million to governing bodies.
Detroit Casinos Performance:
Detroit’s trio of casinos contributed significantly to the state’s gaming revenue, generating $104.63 million in January. The bulk of this revenue, $104.76 million, stemmed from table games and slots. Despite a marginal 0.2% decrease compared to February 2023, table games and slot revenue witnessed a commendable 11.6% increase from January 2024.
The gaming industry in Michigan showcased a nuanced performance in February 2024, characterized by fluctuations in revenue across different segments. While internet gaming emerged as a stronghold with impressive growth figures, sports betting experienced a temporary setback. Nevertheless, the industry remains a vital contributor to the state’s economy, evident from substantial tax contributions and payments made to both state and local authorities.