Michigan Online Gaming Revenue Drops In April Compared To Record March, But Still Strong

Erik Gibbs

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The latest financial overview by the Michigan Gaming Control Board (MGCB) shows that the state’s gaming operators continue to draw on their success. However, while they reported a combined total of $234.8 million in gross receipts for the month, the results were slightly down from March.

The figure marks an 8.7% decrease from the previous month’s record earnings. The detailed performance of each operator reveals a nuanced landscape of iGaming and sports betting revenue streams within the state.

Gross receipts for the iGaming segment totaled $192.9 million last month. This represents a significant drop from March, when the gross receipts reached $215.15 million. However, the change is also in line with an overall dip in April among the legal iGaming states.

Gross sports betting receipts stood at $41.9 million for the month. The total online sports betting handle for April was $399.1 million, a drop of 16.9% compared to the $480.4 million handle a month earlier, which featured the bulk of the March Madness basketball action.

The adjusted gross receipts (AGR), which account for promotional credits and other deductions, amounted to $201.9 million, with iGaming contributing $174.2 million and online sportsbooks providing $27.8 million. Notably, this indicates a 10.4% decrease in iGaming AGR and a 4.1% increase in sports betting AGR compared to March.

Positive year-on-year iGaming growth

The state’s year-over-year comparison paints a brighter picture. iGaming AGR was up by 21.4% and sports betting AGR added 13.3% compared to April 2023.

The financial contributions to Michigan are substantial, with operators reporting $37.6 million in taxes and payments for April. Of this, iGaming taxes and fees accounted for $35.8 million, and online sports betting taxes and fees contributed $1.8 million.

Additionally, the three commercial casinos in Detroit paid $9.8 million in gambling-related taxes and service fees to the city. iGaming taxes and fees to Detroit amounted to $9.1 million and online sports betting taxes and fees were about $725k.

Tribal operators also made notable payments, contributing $4.3 million in April. As of April 2024, there are 15 commercial and tribal operators authorized to launch iGaming and/or online sports betting. The MGCB highlighted that all 15 provide iGaming services and 13 offer online sports betting.

Michigan remains competitive

Michigan remains the second-largest iGaming market in the U.S., once again ranking between Pennsylvania and New Jersey in April’s revenue report:

  • Pennsylvania: $212.2 million
  • Michigan: $192.9 million
  • New Jersey: $187.9 million

FanDuel Casino continued its reign, taking the top spot in Michigan for the second month in a row, edging out BetMGM Casino Michigan. FanDuel brought in $50.7 million compared to BetMGM’s $49.8 million.

This also makes FanDuel the second operator in the state to surpass the $1 billion mark in total earnings. With April’s performance, FanDuel has raked in a total of $1.05 billion since launching in January 2021.

However, BetMGM still leads the overall race, having achieved $1.8 billion in revenue.

DraftKings Casino Michigan is trying to catch up. It’s nearing its own $1 billion milestone, which it will likely reach soon.

FanDuel leads sports betting market

A closer look at sports betting operator performances reveals FanDuel leading the charge there as well. It had $20.4 million in gross revenue, thanks to a 13.3% hold on $153.4 million in handle. Its action at the MotorCity Casino was also strong, contributing $520,800 from $3.8 million in wagers.

DraftKings won $10.5 million from $106.3 million in bets. That makes eight months in a row the sportsbook has reached a win of at least $10 million.

The BetMGM sportsbook closely followed with a 9.75% win rate, claiming $5.7 million in gross revenue from $58.1 million in online handle.

The competitive edge is further highlighted by Caesars and ESPN BET, with the former edging out the latter in handle by a narrow margin. Caesars had a 4.71% win rate, with $1.2 million in gross revenue and a $25.1 million handle. However, ESPN BET nearly doubled its gross revenue with an 8.65% win rate, claiming $2.2 million on a handle of $25.1 million.