In a remarkable development within the digital gaming industry, Michigan has posted significant revenue gains in both internet gaming and sports betting for the month of October. Commercial and tribal operators in the state collectively garnered an impressive $205.3 million in gross internet gaming and sports betting receipts. This represents a noteworthy increase of 7.9% compared to the $190.2 million achieved last year, despite being a marginal 2.4% decline from September’s $210.4 million in 2023.
The lion’s share of internet gambling revenue in the Wolverine State can be attributed to the online casino sector. In this segment, gross receipts peaked at $160.3 million, signifying a substantial 13.7% rise from the $141.0 million reported in the previous year. The figures make it abundantly clear that online casino gaming continues to be the cornerstone of internet gambling revenue in Michigan.
In a contrasting trend, sports betting gross receipts saw an 8.5% descent to $45.0 million. Intriguingly, this downturn occurred in the face of the sports betting handle achieving a new all-time monthly high in the state. Despite the contradictory nature of these statistics, the increase in activity did not translate into higher revenues for sports betting.
Upon accounting for promotional deductions, the adjusted gross receipts (AGR) from both igaming and sports betting combined to a total of $167.7 million—a 5.8% increment from the $158.5 million posted in October of the preceding year. Drilling down further, the AGR for igaming alone leapt by 13.9% reaching $144.2 million. Conversely, reflecting the aforementioned downturn, the sports wagering AGR experienced a steep 26.1% year-on-year decline settling at $23.5 million.
Tax contributions to the state echoed the success of the igaming domain. A total of $30.1 million in igaming taxes and a further $1.8 million from sports betting taxes were paid to the State of Michigan in October. Detroit’s three commercial casinos contributed an additional $8.2 million in taxes. Notably, this sum included approximately $7.5 million derived from igaming tax and $663,754 from sports betting.
The burgeoning online gambling market in Michigan is supported by 15 commercial and tribal operators offering their services throughout the month, with 14 providing online sports wagering and the same number featuring igaming services.
October also saw financial figures being released for Detroit’s three commercial casinos. Here, the impact of ongoing labor disruptions became evident with a significant 19.5% year-on-year decline in revenue, down to $82.8 million. This hit was seen across the board, with table games and slots revenue contributing to $81.7 million of the total, and relatively modest sports betting qualified adjusted gross receipts of $1.1 million.
Detroit has somewhat recovered, buoyed by the news of newly negotiated pay deals for workers at MotorCity and Hollywood Casino at Greektown. Unfortunately, no such agreement has been reached with the staff of MGM, where workers continue to demonstrate through strikes.
While some fluctuations in revenue streams are evident, the overall picture for Michigan’s online gambling sector is one of remarkable resilience and growth. In particular, the robust performance of the igaming market continues to lead the industry, shaping a positive outlook for the future of digital gaming and betting in Michigan.
