Michigan iGaming breaking records with $122M in February

Michigan iGaming breaking records with $122M in February
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Despite the fact that sports gaming operators in Michigan haven’t been doing too well post NFL season, the iGaming industry seems to be blossoming. Not only is it utterly unaffected by the current trends, but it also managed to hit a record-breaking mark in revenue.

The three iGaming horsemen of Michigan

Among the online iGaming operators in Michigan, FanDuel placed first, posting $122.4 million in the handle. Meanwhile, DraftKings ended second, with $94.7 million in online bets. The third place went to BetMGM, which followed with $86.7 million in online wagers. These are the most reputable brands in the industry as they attract many players with their free bets no deposit bonuses as a part of their business strategy.

Across the online sportsbooks’ side of the fence

Meanwhile, Michigan’s sports betting got the short end of the stick. Having generated a revenue of $398.4m this month, this is 19.8% less than what the industry developed in January (which was a record-breaking $496.8m). Add in $25.4m from retail wagering sourced from Detroit-based casinos, and the total stands at $423.8m for the month. Compared to January’s $532.7m, the number is down by 20.4%. 

Michigan’s sports betting records a loss in taxable revenue

Michigan-based sportsbooks recorded an $896,939 loss in retail revenue for the month. Considering the $26.5m in promotional credits, both online and retail entities reported a $4.8m loss in taxable income. The total tax yield was only a relatively modest $581,548.

Michigan’s sports betting since the launch in 2020

Since the official launch in 2020, sportsbooks operating in Michigan have taken in a grand total of $5.1bn in wagers, equating to roughly $400m in revenue. According to Paul Costanzo, lead analyst at PlayMichigan, 2021 was a year characterized by rapid growth. However, at the same time, these are big shoes to fill, and it will be hard for the industry to keep up the pace throughout 2022. Nevertheless, he believes an upward trajectory will characterize the foreseeable future.

How do Detroit’s land-based casinos compare?

In Detroit’s land-based casino sphere, slots and table games generated $98.98m in revenue. At the same time, retail sports betting generated $1.93m. The month’s market share pie chart is divided between the following players:

– MGM Grand Detroit (49%)

– MotorCity Casino Hotel (30%)

– Greektown Casino (21%)

Compared to the previous year, revenue sourced from slots and table games saw a 14% increase. However, compared to December, it went down by 11.1%. Certainly, January’s pandemic-related restrictions played a massive role in the turn of events and the financial outcome for that month.

Paul Costanzo sees excellent things ahead

Paul Costanzo is convinced that the future has great things for Michigan. If Michigan were to surpass Pennsylvania and New Jersey in terms of casino market growth, it would not surprise him at all. In his view, Michigan could very well become the leading US casino market before the year is over. Finally, he noted that online casinos tend to perform consistently when it comes to revenue, and that’s why they’re an essential contributing factor to the state budget.

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