In what marks a curious turn of events for Michigan’s burgeoning online gaming sector, the state’s April revenue figures have experienced a noticeable decline. This follows an earlier, more promising month, when all records seemed to suggest an upward trajectory for the industry.
To put the data into perspective, April brought in $234.8 million in revenue for Michigan, a drop of 8.7% from the $257.1 million recorded in March 2024, which was Michigan’s highest-ever monthly total for online gaming. Despite this sharp decrease, the April figures still managed to outshine those from both January and February, which saw revenues of $229.6 million and $218.5 million respectively.
When juxtaposed with data from April 2023, the industry showed significant year-on-year growth. Revenues in April 2024 increased by a staggering 20% compared to the $195.7 million generated during the same month last year. This year-on-year growth underscores the expanding footprint of Michigan’s sports betting and igaming operators.
Drilling down into the specifics, igaming revenue, which had reached a zenith of $215.5 million in March 2024, fell to $192.9 million in April. Sports betting, another substantial component of the online gaming revenue structure, also witnessed a notable drop in betting handle. Michigan’s online sports betting operators processed $399.1 million in bets in April, down from a heftier $480.4 million in March. Interestingly enough, despite the reduced handle, sports betting revenue held steady at $41.9 million.
A snapshot of the monthly adjusted gross receipts (AGR) paints a mixed picture. In April, the combined AGR for igaming and sports betting was $201.9 million. Of this cumulative figure, $174.1 million came from igaming, while online sports betting contributed $27.8 million. Remarkably, igaming’s monthly AGR declined by 10.4%, whereas sports betting saw an uptick of $4.
.1 million.
Furthermore, year-on-year comparisons for monthly AGR reveal a robust growth story. Igaming monthly AGR surged by 21.4%, while online sports betting AGR grew by 13.3%. These figures indicate a healthy, long-term growth trend for both sectors within Michigan’s online gaming market.
From a fiscal perspective, the state collected $37.6 million in taxes and payments in April, an 8.5% decrease from the $41.1 million accrued in March. Out of this total, igaming contributed $35.8 million, while online sports betting added $1.8 million. Michigan’s tribal operators complemented these numbers with $4.3 million in payments to various governing bodies in April.
The situation isn’t limited to online gaming, as Detroit’s three commercial casinos also reported revenues that mirrored some of the downward trends observed in the online sector. These establishments recorded a combined revenue of $109.4 million for April 2024, an 11.7% drop from the previous month. However, it’s worth noting that these figures were only slightly lower than the $109.7 million reported in the same month the previous year, signaling some degree of stability within the sector.
Among the three commercial casinos in Detroit, MGM continued to dominate, garnering a commanding market share of 46%. Following closely were MotorCity and Hollywood Casino at Greektown, which claimed market shares of 30% and 24% respectively.
In terms of financial obligations, the three casinos paid the city of Detroit $9.8 million in taxes and municipal services fees during April 2024. This represented a 10.9% decrease compared to March’s total of $11 million, indicating a slight ease in the strain on municipal coffers.
Overall, while the April revenue downturn may raise eyebrows, the broader picture still suggests a rapidly growing and evolving online gaming landscape in Michigan. The industry’s year-on-year growth, robust fiscal contributions, and stabilization efforts are all positive indicators for the future. As the state navigates these ebbs and flows, it’s clear that Michigan’s online gaming sector remains a key player in the broader economic tapestry.
