In June 2024, Michigan’s commercial and tribal operators reported a combined $214.1 million in gross receipts from internet gaming and sports betting. This represents a 10.6% decrease from May.
Decline in Internet Gaming and Sports Betting Revenue
June’s data indicates a notable decline in both internet gaming and sports betting revenues. Specifically, internet sports betting handle dropped by 19.5% to $276.8 million, while internet gaming gross receipts fell to $183.2 million, marking an 8.1% decrease from the previous month.
The drop in internet sports betting revenue was substantial, with gross receipts declining by 24.4% to $30.9 million compared to May. This sharp decrease was partly due to a significant $48.2 million free play deduction taken by MGM Grand Detroit / BetMGM. This deduction had a major impact on adjusted gross receipts (AGR) for sports betting, which fell to negative $28.21 million.
In contrast, internet gaming AGR saw a year-over-year increase of 20.2%, suggesting that while there was a month-over-month decrease, the sector is still growing relative to last year.
Revenue Contributions and Tax Implications
The total amount submitted in state taxes and payments by operators was $35.5 million. Of this, Detroit’s three casinos contributed $8.79 million in wagering taxes and municipal services fees. Tribal operators made payments totaling $4.3 million to their respective governing bodies. These contributions are crucial for state and local finances, supporting various public services and infrastructure projects.
Detroit Casinos’ Performance
Detroit’s three casinos reported a total revenue of $105.44 million for June, a 5% decrease from the previous month. However, there was a notable increase in revenue from table games and slots, which rose by 2.6% year-on-year to $104.5 million. This suggests a shift in consumer preferences or a resurgence in table game activity. Revenue from retail sports betting in Detroit was relatively modest at $889,014.
Industry Implications and Trends
The decrease in overall receipts for internet gaming and sports betting could be attributed to several factors. Seasonal variations often influence gambling activity, and promotional strategies such as the free play deduction by MGM Grand Detroit / BetMGM can significantly affect revenue figures.
Despite the month-over-month declines, the year-on-year growth in internet gaming AGR highlights the sector’s ongoing expansion. This suggests that while immediate revenue figures may fluctuate, the long-term trajectory for internet gaming remains positive.
For Detroit, the slight decrease in casino revenue necessitates careful financial planning, but the increase in table games and slots revenue is a positive sign. The city’s gaming market appears to be adapting to changing consumer behaviors and preferences.
June 2024 presented a mixed bag for Michigan’s internet gaming and sports betting sectors. While there was a noticeable decline in revenues compared to May, the year-on-year growth in internet gaming and the performance of Detroit’s casinos offer a nuanced view of the industry’s health. Stakeholders should consider these trends when planning future strategies and investments in the evolving gaming landscape.