Michigan has a strong and lucrative online casino market. Online casinos have reached at least $175 million in revenue over the past seven consecutive months. In March, they broke the $200 barrier and set a new record. In July this year, they saw a positive spike in revenue after a decline in June.
Since online casinos arrived in Michigan in 2021, the state has emerged as one of the quickest-growing markets in the U.S. Licenses for online casinos belong to nine tribal casinos and the three commercial casinos in Detroit. Michigan has 12 online sportsbooks.
July online casino revenue
Michigan online casinos made $191.4 million in revenue in July. This was a great improvement from June which saw a decline. Since May this year, this was the highest figure. It was also the fourth-highest figure ever reported in Michigan. The number is up 24.6% over July 2023.
Ten of the 15 online casinos in Michigan experienced an increase in revenues in July. Five casinos saw revenue growth in the double digits.
BetMGM still leads the market with FanDuel in second place and DraftKings in third place. FanDuel was the leader in March and April, but before this, BetMGM had been the top operator for a while. BetMGM widened the gap a little in July bringing in $50.7 million while FanDuel brought in $46.7 million. The fight for the top position in Michigan is far from over. DraftKings had its best month since April with revenue of $37 million.
Tax paid in July
The 15 online casinos paid $36 million in taxes to the state in July. They have delivered more than $1 billion in tax revenue to the state. Online casinos and poker sites are taxed 20% for gross revenue under $4 million and 28% for gross revenue greater than $12 million. Most of online gambling tax revenue goes to support the School Aid Fund. This is dedicated to educating K-12 public school students.
July Sports betting revenue
A significant increase in sports betting is another indication of the love for gambling in Michigan. Gross sports betting receipts in July were $29.4m. Online sports betting AGR was $17.2 million. The digital handle was $250.2 million which was down from $276.8 million last month and up from $200.8m in July 2023. Online sports betting operators paid $1.1 million in taxes to the state.
Combined total
Total online gaming and online sports betting adjusted gross receipts (AGR) for July was nearly $190 million. This included over $172 million from online casinos and more than $17 million from online sports betting. Compared to July 2023, online gaming AGR was up by nearly 25% and sports betting by just over 5%.
Drivers of the increase in revenue
Some of the drivers of the increase in revenue include increased consumer interest in gambling in summer months and continued market growth. Online casinos have succeeded in attracting many customers with their user-friendly interfaces, diverse game selections, and attractive bonuses. BetMGM (MGM Grand) and FanDuel (MotorCity Casino) were first and second in terms of gross receipts at $50.7 million and $46.7 million respectively.
The Michigan gambling market has an exciting future as it becomes a major player in the national online gambling landscape. Online gambling is on a strong growth path in Michigan. July managed to push it over $1.35 billion in online casino revenue. Despite the slower pace in June, Michigan is on track to exceed $2.32 billion in 2024. Its lifetime online casino revenue is $5.97 billion, and this could exceed $6 billion in August.
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