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Michigan Online Sports Betting Generates $32M Revenue in March
According to PlayMichigan, the online sportsbooks in Michigan set fresh records for handle and revenue, reaching nearly $400 million in online and retail bets in March and surpassing $30 million in online revenue, while online casino revenue approached $100 million.
“With nearly $1 billion in lifetime bets now, it’s hard to understate just how unprecedented Michigan’s gaming expansion has been so far. The growth in online casino gaming has been off-the-charts. No other state has enjoyed a launch of online casino gaming and sports betting quite like this,” Dustin Gouker, analyst for PlayMichigan.com, said.
The NCAA Tournament spurred Michigan’s online sportsbooks to $359.5 million in handle, according to official data released Tuesday. That total was up 19.1% from $301.9 million in February. Combined with the state’s $24.2 million retail handle, which was released last week, Michigan’s online and retail sportsbooks collected $383.7 million in bets. That overall total is up 17.8% from $325.6 million in bets in February.
Michigan’s online and retail sportsbooks have now combined to take in $990.9 million in bets since legalization, including $860 million in 2021.
March’s online bets produced a record $32.3 million in total gross sports betting receipts, up from $9.4 million in February. Taxable revenue rose to $19 million, which was up from a $10.8 million loss in February.
Online sportsbooks generated $535,930 in state taxes, but promotional credits continue to dampen the state’s take. So far this year, the state has collected $819,866 on $3 million in taxable revenue.
“As successful as the launch has been, those promotional credits are starting to stack up, which could take some time to work through. The summer months will likely end up being more fruitful for the state, even as betting predictably slows with a lighter sports calendar. If tax revenue remains lackluster, however, it could grow into a larger issue that may need to be fixed going forward,” Matt Schoch, analyst for PlayMichigan.com, said.
Online betting accounted for 93.7% of the state’s overall handle. FanDuel/MotorCity Casino led the online market with $107.2 million in bets. Those bets gained $7.8 million in gross sports betting receipts and $5 million in taxable revenue.
“Michigan is the most competitive online sports betting market in the country right now, and that has shown in the heavy promotional spend by most operators. The top three have separated themselves from the pack, but BetMGM has differentiated itself in generating heavy action while preserving its win with less in promotions,” Schoch said.
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