Michigan’s commercial and tribal internet gaming and sports betting sectors reported significant revenues for July 2023, totaling $220.86 million. This represents a 3.2% increase compared to June, reflecting continued growth in Michigan’s online gambling industry.
According to data released by the Michigan Gaming Control Board (MGCB), internet gaming gross receipts reached $191.44 million, while gross sports betting receipts amounted to $29.42 million. Combined adjusted gross receipts (AGR) stood at $189.5 million, with iGaming contributing $172.3 million and internet sports betting accounting for $17.2 million. Meanwhile, the sports betting handle for July came in at a robust $250.2 million.
Monthly Comparison: July vs. June Performance
The 3.2% growth in gross receipts over June showcases the consistent rise of Michigan’s gaming industry, driven by both online casino games and sports betting. This increase was spurred primarily by stronger performance in the internet gaming (iGaming) sector, which continues to be the primary driver of Michigan’s gambling revenue.
The upward trend in July follows a solid performance in June, indicating strong user engagement and steady growth in Michigan’s online gambling activities. While a portion of this growth can be attributed to increased summer engagement, ongoing expansion of betting products, sports events, and improved consumer access are also contributing to this momentum.
iGaming Dominates: Internet Gaming Revenue
Internet gaming has become the most lucrative segment of Michigan’s gaming market. July’s gross receipts from iGaming totaled an impressive $191.44 million, making up the majority of the state’s overall internet gaming and sports betting revenue. The significant contribution of iGaming is not only a testament to its popularity but also to its sustainability, as it continues to outpace other forms of gambling.
Sports Betting in Michigan: A Growing Sector
Although iGaming dominates the online gambling landscape, sports betting remains a vital part of the industry. Michigan’s gross sports betting receipts for July stood at $29.42 million, contributing significantly to overall revenue. The total handle for internet sports betting during July was $250.2 million, indicating a strong interest in sports betting among Michiganders.
Despite its smaller size relative to iGaming, sports betting continues to experience growth, with fluctuations often tied to seasonal sports events. Michigan’s burgeoning sports betting market has grown consistently since its launch, driven by the increasing popularity of online sportsbooks and enhanced betting options.
Adjusted Gross Receipts (AGR): Understanding the Core Revenue
Adjusted gross receipts (AGR) for July reached a combined total of $189.5 million. Of this amount, $172.3 million came from iGaming, while $17.2 million was generated by internet sports betting. AGR represents a critical metric for operators, as it accounts for promotional expenses and other deductions from gross receipts, offering a clearer picture of net revenues.
The continued dominance of iGaming in AGR indicates that the growth in online casino games remains consistent and dependable, while sports betting has also maintained steady performance, despite seasonal and event-based fluctuations.
Tax and Payments: Contributions to the State and Local Governments
Michigan’s gambling industry is also a significant contributor to the state’s coffers. In July, operators reported submitting $37.1 million in taxes and payments to the State of Michigan. This includes taxes levied on both internet gaming and sports betting activities. These contributions play an essential role in supporting state programs and services, showcasing the broader benefits of the regulated gaming market.
Moreover, Detroit’s three commercial casinos reported payments totaling $9.1 million in wagering taxes and municipal services fees to the City of Detroit. Tribal operators, who manage their gaming enterprises independently, also made notable contributions, reporting $4.5 million in payments to governing bodies. These figures underscore the role of both commercial and tribal operators in sustaining local economies through direct payments and taxes.
Detroit’s Physical Casino Landscape: Mixed Results for July
While online gaming and sports betting have captured much of the attention, Michigan’s physical casinos also posted noteworthy results in July. Detroit’s three major casinos—MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown—reported a combined $105.9 million in revenue for the month.
Revenue from table games and slot machines at the three casinos totaled $106.3 million. However, in a surprising twist, retail sports betting at Detroit casinos generated a negative result, with total revenue falling to -$399,229. This anomaly highlights the volatility of sports betting outcomes in the retail sector, which contrasts sharply with the steady gains seen in internet sports betting.
MGM Grand Detroit: Leading the Market
Among the three Detroit casinos, MGM Grand Detroit continues to lead with 48% market share, reporting revenue of $51.3 million for July. This marks a 2.5% year-on-year increase, cementing MGM’s dominant position in the Detroit market. MGM’s broad range of offerings, combined with its strong brand recognition, has enabled it to maintain its competitive edge.
MotorCity Casino and Hollywood Casino at Greektown: A Mixed Picture
MotorCity Casino holds the second-largest market share at 29%, with July revenues reaching $31.2 million. Despite this solid performance, MotorCity experienced a slight year-on-year decline of 0.5%. Hollywood Casino at Greektown, which accounted for 23% of the market, saw the sharpest decline in revenue, down 6.8% year-on-year to $23.1 million. This decline suggests increased competition or changing consumer preferences impacting Hollywood Casino’s revenue stream.
Future Outlook: Trends and Expectations for Michigan’s Gaming Industry
Michigan’s gaming industry shows no signs of slowing down, with both iGaming and sports betting experiencing steady growth. The positive month-on-month growth in July suggests that the market is maturing, though there are areas to watch.
iGaming as the Driver of Future Growth
iGaming remains the most profitable segment, and operators are likely to continue focusing on expanding their offerings to meet consumer demand. The proliferation of online casinos, combined with improved access to internet gaming platforms, will likely ensure that iGaming continues to outpace other forms of gambling in Michigan.
Sports Betting: Room for Growth
While sports betting in Michigan has shown consistent growth, there is still significant untapped potential, particularly as new sports seasons begin and major events like the NFL, NBA, and March Madness drive interest. Continued innovations in sports betting technology, along with expanded in-play betting options, could also provide further growth opportunities.
Physical Casinos: Adapting to the New Normal
Despite the strong performance of Detroit’s casinos, their future remains somewhat uncertain. With retail sports betting posting negative revenue for July, these casinos will need to adapt to the shifting landscape, where more consumers may prefer online options. Enhancing their physical offerings, such as integrating more dynamic entertainment and hospitality experiences, could help counterbalance the competition from online platforms.
Michigan’s gaming industry, both online and offline, continues to grow, reflecting national trends toward the expansion of internet-based gambling. With $220.86 million in revenue for July, a 3.2% increase from the previous month, the state is solidifying its position as a key player in the U.S. gaming market. As the industry evolves, the focus will likely remain on iGaming’s dominance and the growing appeal of sports betting, alongside ongoing competition among Detroit’s physical casinos.