In January, Michigan’s thriving iGaming and sports betting industry continued to make headlines, generating a combined revenue of $187.3 million. Although this marked a 7.1% decrease from December’s impressive $201.6 million, the state’s digital gaming landscape remains robust and dynamic.
Shifts in iGaming and Sports Betting Revenues
Internet gaming, a cornerstone of Michigan’s online entertainment, achieved a significant milestone by reaching a record-breaking $153.7 million in gross receipts. This not only surpassed December’s figure of $132.4 million by 0.6%, but also underscored the consistent growth in this sector. On the other hand, sports betting receipts experienced a decline of 31%, falling to $33.6 million from December’s $48.8 million.
The combined adjusted gross receipts for internet gaming and internet sports betting stood at $156.2 million, down 7.2% from December’s $168.2 million. However, a closer look reveals the resilience of the industry, with internet gaming adjusted gross receipts at $138.3 million, a 0.6% increase compared to the previous month and a remarkable 26.7% surge from January 2022.
Challenges and Opportunities in Internet Sports Betting
Internet sports betting faced certain challenges during this period. Adjusted gross receipts for internet sports betting, contributed by both commercial and tribal operators, totaled $17.8 million. This marked a sharp 42% decrease from December’s $30.7 million and a 6.9% drop from January 2022’s $19.2 million. The handle, reflecting the total amount wagered, also saw a minor decrease of 0.7% from December, settling at $475.6 million.
Despite these fluctuations, the internet sports betting sector continues to evolve, with 15 operators providing online sports betting services in January. It’s worth noting that one tribal operator discontinued its gaming offerings in 2022, underlining the competitive nature of the market.
Tax Contributions and Local Impact
Operators fulfilled their tax obligations, contributing $26.1 million to the State of Michigan in January. Of this, $24.9 million was attributed to internet gaming, while internet sports betting contributed $1.2 million. Additionally, the three casinos in Detroit reported payments of $7.5 million in City of Detroit wagering taxes and municipal services fees. Tribal operators, on the other hand, contributed $2.7 million to governing bodies.
Detroit’s Casino Landscape
The land-based casinos in Detroit demonstrated their resilience and contribution to the state’s economy. In January, these casinos collectively generated $103.5 million in aggregate revenue. Table games and slots were the primary revenue drivers, accounting for $103.4 million, while retail sports betting contributed a minor $111,023.
Among the city’s casinos, MGM Grand Detroit Casino emerged as the leader, claiming an impressive 48% market share. MotorCity Casino followed closely with a 30% share, while Hollywood Casino at Greektown held 22%. Comparing this performance to previous periods, table games and slots revenue from these casinos exhibited a 4.4% increase from January 2022, albeit with a slight 0.45% dip from December.
Looking Ahead
Despite the dip in January’s revenue figures, Michigan’s iGaming and sports betting industry continues to showcase its vibrancy and adaptability. The record-breaking achievements in internet gaming and the ongoing evolution of internet sports betting highlight the sector’s potential for further growth. As operators navigate challenges and capitalize on opportunities, the landscape remains one to watch closely in the months to come.