July 2024 Sees Notable Growth in Michigan’s iGaming and Sports Betting Revenue

July 2024 proved to be another strong month for Michigan’s online gambling sector. According to the latest data released by the Michigan Gaming Control Board (MGCB), both iGaming and digital sports betting saw notable increases in revenue. The state’s commercial and tribal operators reported a combined total of $220.86 million in gross receipts for internet gaming and sports betting, reflecting a 3.2% rise compared to June.

Significant Monthly Revenue Performance

The bulk of this revenue came from iGaming, which contributed $191.44 million to the total, up from $183.2 million in June. On the other hand, gross sports betting receipts were slightly down, totaling $29.42 million in July compared to $30.9 million in June. Despite this minor dip in sports betting receipts, the overall adjusted gross receipts (AGR) for both sectors saw considerable growth. The combined AGR for July was $189.5 million, with $172.3 million from iGaming and $17.2 million from internet sports betting. This marks a 4.7% increase in iGaming AGR and a substantial $45.4 million increase in sports betting AGR compared to the previous month.

Compared to the same period last year, the growth is even more impressive. iGaming AGR surged by 24.7%, while sports betting AGR grew by 5.2%, showcasing the continued expansion of Michigan’s online gambling market.

Decline in Sports Betting Handle

However, July also witnessed a slight decline in the total internet sports betting handle, which fell by 9.6% from $276.8 million in June to $250.2 million. This decrease in handle did not significantly affect the overall revenue, largely due to the strong performance in the iGaming sector and a continued high wagering hold in sports betting. The digital sports betting operators recorded an 11.3% win rate in July, marking the fourth consecutive month of double-digit holds, and the second-highest hold since digital sports betting began in Michigan in January 2021.

Tax Contributions and Payments

The operators reported a substantial contribution to state and local coffers in July. A total of $37.1 million was paid in taxes and fees to the State of Michigan, with iGaming taxes and fees ing for $36.0 million and internet sports betting contributing $1.1 million. The City of Detroit, home to the state’s three commercial casinos, received $9.11 million in wagering taxes and municipal services fees, with $8.8 million derived from iGaming and $311,475 from sports betting.

Tribal operators also made significant payments to governing bodies, amounting to $4.5 million in July. These contributions are crucial for funding various public services and initiatives across the state, including education, public safety, and infrastructure improvements.

Detroit Casinos Maintain Strong Presence

Detroit’s three commercial casinos – MGM Grand, MotorCity Casino, and Greektown Casino – continued to dominate the market. Together, they reported an adjusted gross revenue of $106.3 million, with MGM Grand leading the charge at $51.3 million. These casinos collectively paid $8.6 million in state taxes and $12.6 million to the City of Detroit in July.

In of market share, MGM Grand maintained its dominant position with 48%, followed by MotorCity with 29%, and Hollywood Casino at Greektown with 23%. While the retail casinos reported a minor loss in sports betting revenue for July, their overall performance remained strong, contributing positively to Michigan’s gaming revenue.

Source:

“iGaming, sports betting operators report $220.86M in July revenue”, michigan.gov, August 20, 2024.