Michigan’s Online Gambling Market Thriving, May Revenue Up 28.9% Year-Over-Year
The month of May closed with online gaming revenue of $239.5 million, compared to $185.8 million collected in May 2023.
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Michigan’s online gambling industry is experiencing a sustained surge, according to the latest Michigan Gaming Control Board (MGCB) data.
The month of May closed with online gaming revenue of $239.5 million. This translates to a year-over-year increase of 28.9% compared to the $185.8 million collected in May 2023. The positive trend extends beyond annual comparisons, with May’s revenue exceeding April’s total of $234.8 million by a healthy margin of 2%.
In Michigan, as of May, there were 15 businesses with the green light to operate online gambling platforms. These businesses can be either commercial casinos or tribal organizations. Out of the 15, all offer iGaming (online casino games), while only 12 currently provide online sports betting.
The growth has been driven by robust performances in both online casinos and sports betting. May’s iGaming gross receipts were $198.6 million, while gross sports betting receipts reached $40.9 million. In April, where gross iCasino receipts were $192.9 million and gross sports betting receipts were $41.9 million.
AGR ticks upward
May’s total online casino and online sports betting adjusted gross receipts (AGR), which account for promotional credits and bonus payouts, came in at $206.8 million. This breaks down to $178.7 million from iGaming and $28.1 million from online sports betting.
Compared to April, this represents a 2.6% increase for iGaming and a modest 1.2% increase for sports betting. However, a year-over-year comparison reveals much more impressive growth, with May 2024’s iGaming AGR up 31.9% and sports betting AGR adding 27.7% compared to May 2023.
While the overall trend is undeniably positive, May’s total online sports betting handle of $343.7 million reflects a 13.9% decrease from the $399.1 million handle the online sportsbooks reported a month earlier. This is similar to the handle trends seen in other states in May and in past years from April to May, as the NBA and NHL wind down their seasons and offer fewer games to bet on and the college basketball season is over entirely.
iGaming results boost state, retail casinos
Despite the slight dip in sports betting handle, the strong revenue performance translates to significant tax contributions for the state of Michigan. Operators’ data shows they contributed a total of $38.8 million in taxes and payments last month. Of this amount, $37 million originated from iGaming, while online sports betting taxes and fees contributed $1.8 million.
Detroit’s casinos are also reaping the benefits of the online gambling boom. The three casinos in the city reportedly contributed $10.1 million to Detroit in the way of municipal services fees and wagering taxes. This breakdown reveals that iGaming taxes and fees generated $9.4 million, while online sports betting taxes and fees contributed $665,117.
Michigan’s online gambling market continues to demonstrate its remarkable potential. The significant tax contributions also highlight the economic benefits this market brings to both the state and the city of Detroit.
