In a striking display of growth, Michigan’s online gaming industry has surged to an all-time high, with March’s revenues reflecting a significant upswing that overshadows the preceding months and the corresponding period from the previous year. With a robust 17.7% increase from February’s $218.5 million, and a 12.0% jump from January’s $229.6 million, online gaming operators in Michigan have combined for a remarkable $275.1 million in revenue for the month of March.
This financial leap represents an impressive 18.8% year-on-year growth, cementing March 2023 as the state’s strongest online gaming month since the inception of igaming in January 2021. Igaming itself was a major contributor to this achievement, with revenue for the sector peaking at $215.5 million in March. This figure exceeds the former record of $188.0 million reported in February and highlights the sector’s sustained momentum.
Not to be overshadowed, the sports betting domain also reported substantial gains, accounting for $41.9 million of the monthly revenue, a significant 37.4% hike from the $30.5 million reported in February. This growth is further underscored by the total online sports betting handle for March, which stood at $480.4 million, marking a 19.3% increase from the previous month.
The collective adjusted gross receipts (AGR) for both igaming and online sports betting reached $221.1 million in March. Breaking this down reveals that igaming was responsible for $194.5 million of the total AGR, up by 14.9% from February, while online sports betting operators brought in $26.7 million, a figure that more than doubles the $12.9 million reported in the month prior.
Comparing the sectors on a year-to-year basis reflects divergent trends. Igaming AGR swelled by 25.8% year-on-year in March, yet sports betting AGR encountered a 15.2% decline from the same period last year, indicating variations in sectoral growth patterns within the online gaming industry.
Moreover, projections for the year based on current traction suggest that the state of Michigan is well on its way to eclipse its 2023 online gambling revenue, which reached an already impressive $2.3 billion. At the current rate, forecasts indicate a potential to top this figure by approximately $500 million by the end of 2024. So far, the combined revenue from online operators for the year stands at $705.2 million, with sights set on an anticipated $2.8 billion revenue stream over the entirety of 2024.
The success of Michigan’s online gaming is not just translating into big numbers for operators but also proving beneficial for the state in terms of tax contributions. In March, online gaming operators reported submitting a considerable $41.1 million in taxes and payments to state coffers.
Adding to the state’s economic upturn from gambling are Detroit’s three commercial casinos, which earlier this month reported a combined revenue of $123.9 million for March. This marked a 3.9% rise from last year. Furthermore, revenue figures from slots and table games came in at $122.3 million, which is 18.5% ahead of February’s outcomes. Retail sports betting’s qualified adjusted gross receipts (QAGR) for March were reported at $1.6 million, 13.2% ahead of the same month last year.
On the casino front, MGM Grand Detroit led the charge with a 46.0% market share in March, followed by MotorCity Detroit with 31.0%, and Hollywood Casino at Greektown with 23.0%, rounding out the competitive landscape.
In conclusion, Michigan’s online gaming ecosystem is experiencing unprecedented expansion, with significant revenue jumps both on a month-to-month and year-on-year basis. This growth not only reflects the industry’s robust health but also heralds a prosperous future for the state’s economy as it continues to reap the rewards of a thriving online gaming sector.
