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      Finance

      Michigan Online Casino Continues Growing, Reporting $191M In Gross Receipts In July

      Revenue from iGaming last month increased by 4.5% over June

      erik gibbs

      By Erik Gibbs

      Last updated: August 21, 2024

      1 min

      michigan m sign

      Michigan’s online gaming sector posted another strong performance in July, with combined iGaming and sports betting gross receipts reaching $220.9 million. This marks a 3.2% increase from June’s figures, despite seasonal fluctuations in sports betting.

      The iGaming segment, which includes online slots, poker, and table games, reported gross receipts of $191.4 million in July, up 4.5% from $183.2 million in June. This highlights the continually growing popularity of online gaming in Michigan, driven by a steady expansion in the number of active users and enhanced gaming offerings by licensed operators as the state cracks down on illegal operators.

      Conversely, gross receipts from online sports betting, which includes wagers placed on professional and college sports, saw a slight decline. In July, gross receipts for sports betting totaled $29.4 million, down 4.8% from $30.9 million in June. The decrease is consistent with the typical slowdown in sports betting during the summer months when major sporting events are fewer.

      Adjusted gross receipts reflect healthy market

      Adjusted gross receipts (AGR), which account for promotional spending and free play credits, provide a clearer picture of the operators’ net earnings. In July, combined AGR for iGaming and sports betting reached $189.5 million, comprised of $172.3 million from iGaming and $17.2 million from sports betting. The iGaming AGR experienced a 4.7% month-over-month increase.

      Notably, the AGR for online sports betting surged by 45.4% compared to June, despite the lower gross receipts. This significant rise is indicative of operators successfully managing promotional spend during a slower sports betting season.

      When comparing year-over-year performance, July’s iGaming AGR was up by 24.7%, while sports betting AGR saw a modest increase of 5.2%.

      The total online sports betting handle was $250.2 million in July, down 9.6% from the $276.8 million recorded in June.

      State coffers continue to reap the benefits

      Michigan’s online gaming operators contributed a total of $37.1 million in taxes and payments to the state in July. Of this, $36 million was derived from iGaming activities, while online sports betting contributed $1.1 million. These tax contributions are critical in funding state programs and public services.

      2 online gamblers win $300K jackpots from Michigan casino https://t.co/6PIgv6818F

      — MLive (@MLive) July 28, 2024

      The City of Detroit, home to the state’s three commercial casinos, received $9.1 million in wagering taxes and municipal service fees in July. This includes $8.8 million from iGaming and $311,475 from online sports betting.

      The slight downturn in sports betting receipts and handle reflects seasonal dynamics rather than a fundamental weakness in the market. As the sports calendar begins to pick up, particularly with the return of the NFL and college football, sports betting activity will rebound — and potentially set new state records.

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