Michigan Online Casinos Break Revenue Records in October 2024

Michigan’s online gaming market continues to thrive, with operators reporting their highest monthly iGaming revenue to date. According to the Michigan Gaming Control Board, iGaming gross receipts for October reached $220.7 million, suring the previous record of $215.2 million set in March 2024. Adjusted gross receipts, ing for promotional deductions, also broke records at $198.6 million.

The state’s 15 licensed iCasino operators contributed significantly to Michigan’s tax revenues. In October, operators paid $41.5 million in internet gaming taxes to the state and $10.2 million in taxes to the city of Detroit. Tribal operators also distributed $5.2 million to their governing bodies. These contributions reflect the robust health of the state’s online casino industry, which has already sured 2023’s full-year gross receipts by October, totaling $1.97 billion year-to-date.

Operator Rankings: A Tight Race at the Top

The competition among Michigan’s iGaming operators remains fierce. FanDuel Casino narrowly edged out BetMGM Casino for the top spot in October, reporting $56.17 million in gross receipts compared to BetMGM’s $56.16 million—a mere $10,000 difference. Despite this narrow victory, BetMGM maintains the lead for the year, with $515.3 million in gross receipts compared to FanDuel’s $496.8 million.

DraftKings Casino retained its third-place position with just over $40 million in gross receipts. Meanwhile, Caesars Casino edged out BetRivers for fourth place, posting $14.3 million compared to BetRivers’ $14.2 million. Other notable performances included:

• Golden Nugget: $9.1 million
• Fanatics: $6.4 million
• ESPN Bet: $5.3 million
• Four Winds: $4.2 million
• Soaring Eagle: $3.5 million
• BetPARX: $3.1 million

Smaller operators like Horseshoe Casino, PokerStars, and Firekeepers Casino also contributed, while SI Casino reported the lowest total, with $611,000 in gross receipts.

Sports Betting Faces Challenges

In contrast to iGaming’s success, October proved less favorable for sports betting operators in Michigan. Although the total sports betting handle rose by 11.7% from September, reaching $560.4 million, gross receipts dropped sharply from $58.4 million in September to $33.0 million in October.

The lower hold rate, which fell to 5.8% from September’s 11.6%, reflects fewer unexpected outcomes during the month, leading to reduced profitability for operators. Notably, DraftKings Sportsbook reported a net loss after ing for promotional deductions, one of four sportsbooks to do so.

FanDuel Sportsbook led in betting handle, generating $211.3 million, with DraftKings following at $159.9 million. The decline in sports betting revenue contrasts sharply with the record-breaking performance of iGaming, underscoring the varying dynamics between the two segments.

Record-Breaking Year for Michigan Gaming

With two months remaining in the year, Michigan has already set a new benchmark for its online gaming industry. The combined gross receipts for iGaming and sports betting reached $253.7 million in October, underscoring the sustained growth of the sector. This marks a 37.7% increase in iGaming adjusted gross receipts compared to October 2023, highlighting the rapid expansion of the market.

The industry’s contributions to state and local governments also remain substantial. In October, operators collectively paid $42.1 million to the state and $10.5 million in taxes and fees to the City of Detroit. Tribal operators continued to play a vital role, with $5.2 million in payments to their governing bodies.

As Michigan’s iGaming and sports betting landscape evolves, the state’s operators and regulators will undoubtedly continue to explore ways to sustain this remarkable growth trajectory.

Source:

“iGaming, sports betting operators report $253.7M in October revenue,” Michigan Gaming Control Board, November 19, 2024.