Michigan Online Gambling Revenue: Sports Betting & Casino

The long-awaited debut of online sports betting and online casino gambling in Michigan took place on Jan. 22, 2021. May 2021 marked the fourth full month of operations for Michigan’s iGaming industry.

May marked another strong month for Michigan’s online casinos. Mobile casino apps in the Great Lakes State generated $89,064,106 in monthly revenue, and are on pace to clear the $1 billion mark in revenue by the end of the year.

Online sports betting revenue took a dip in May, dropping 9.2% month-to-month against April. Michigan’s mobile sportsbooks produced $9,876,406 in revenue, with more than half of the state’s online sportsbooks in the negative for the month.

Michigan Combined Online Sports Betting And Casino Tax Revenue 2021 

Michigan online gambling brought $18,717,365.43 in state tax revenue to Michigan in May. The majority of that total came from Michigan’s online casino revenue, which yielded $89.06 million in adjusted receipts and produced $18.1 million in tax revenue for the state.

Michigan mobile sports betting revenue came in at $9,876,406 in May, adding $615,153 in online sports betting tax revenue for the state. Since launching on Jan. 22, combined state tax revenue from all online gaming platforms totals more than $72 million so far.

Michigan Monthly Online Sports Betting Handle 2021

Betting handle represents the total of all wagers placed at Michigan’s online sportsbooks for the month.

Michigan’s mobile sports betting industry produced $237,551,158  in wagering handle from online sportsbooks in May. While Super Bowl and March Madness betting boosted Michigan’s handle totals in February and March, those numbers have dropped off a bit after the prime months of the sports betting calendar.

FanDuel Sportsbook, DraftKings Sportsbook, and BetMGM accounted for nearly 80% of all online bets places in Michigan in May.

Michigan Monthly Online Sports Betting Revenue 2021

While handle marks the total amount of all bets placed, revenue comes from the amount won by the sportsbooks.

The Michigan Gaming Control Board defines revenue as “Adjusted Gross Sports Betting Receipts.” That figure comes from Gross Sports Betting Receipts minus promo credits (welcome bonuses, pre-launch offers, and other free betting credits awarded to players).

Michigan’s sports betting brands utilized an aggressive customer acquisition strategy leading up to the January 2021 launch. All ten of the mobile sportsbooks that went live on day one offered pre-launch bonuses and new player promotions in some form.

With those promo credits subtracted from the Gross Sports Betting Receipts, Michigan’s mobile sportsbooks posted net revenue losses in both January and February.

That figure moved into the black in March, however, with that trend continuing in April and May. Michigan’s mobile sports betting apps generated $9,876,406 in revenue for May. That figure marks a 9.2% dropoff in month-to-month revenue against April.

Michigan Online Sports Betting Revenue May 2021*

MI SportsbooksCasino PartnerOnline Betting HandleAdjusted Gross Sports Betting ReceiptsInternet Sports Betting State Tax**
FanDuel SportsbookMotorCity Casino Hotel$71,158,909
$7,418,043
$385,818
DraftKings SportsbookBay Mills Indian Community$66,743,390-$781,132$0
BetMGMMGM Grand Detroit$51,580,090
$2,744,345$161,367
Barstool SportsbookGreektown Casino Hotel$18,181,398
$737,394
$43,359
PointsBetLac Vieux Desert Band of Lake Superior Chippewa Indians
$11,441,407
-$93,079$0
William HillGrand Traverse Band of Ottawa and Chippewa Indians
$6,153,332-$7,150
$0
FOX BetLittle Traverse Bay Bands of Odawa Indians$5,087,919
$205,716
$17,280
BetRiversLittle River Band of Ottawa Indians$2,834,528-$41,313$0
TwinSpiresHannahville Indian Community
$1,483,408-$104,554$0
WynnBETSault Ste. Marie Tribe of Chippewa Indians$1,417,570
$87,233$7,328
Golden Nugget SportsbookKeweenaw Bay Indian Community
$923,269
-$17,804$0
Four Winds SportsbookPokagon Band of Potawatomi Indians
$545,937
-$271,294
$7,552
Totals$237,551,158$9,876,406
$615,153

**tribal casinos pay 8.4% state tax; commercial casinos pay 5.88% state tax and 2.62% city tax

Michigan’s mobile sports wagering industry generated a combined $9,876,406 in May. The state’s dozen online sportsbooks produced $615,153 in state tax revenue.

The sportsbooks only pay state tax on net positive annual revenue, which explains why most of the state’s online operators have a zero in the State Tax column. Many of Michigan’s 12 mobile sports betting operators are still in the negative, as customer acquisition promos led to negative revenues for many of the state’s sports betting brands in January and February.

FanDuel Sportsbook posted May’s top monthly revenue totals, but Michigan shapes up as one of the most competitive online sports betting markets in the US. FanDuel, DraftKings, BetMGM, Barstool, and PointsBet all appear poised to lead the charge in the Michigan market.

Michigan Monthly Online Casino Tax Revenue 2021

The state taxes online casino revenue using a tiered system, and all mobile casino operators pay somewhere in the range of 20-28% for Internet Gaming State Tax Payment. Michigan’s 12 mobile casinos combined to produce $18,102,213 in state tax revenue for May.

Since launching on Jan. 22, 2021, Michigan’s online casinos have generated $71,506,493 in tax revenue for the state.

Michigan Monthly Online Casino Revenue 2021

With $89,064,106 million in adjusted gross receipts for May, Michigan’s online casinos seem to have reached a steady monthly revenue figure that comes in right around $89 million per month. That number puts Michigan in contention with New Jersey and Pennsylvania among the top US markets for online casino gaming.

All 12 online casinos combined have produced more than $369 million in revenue so far in 2021.

Michigan Online Casino Revenue By Operator May 2021*

MI Online CasinosCasino PartnerAdjusted Gross ReceiptsOnline Casino State Payment**
BetMGMMGM Grand Detroit
$36,089,904
$7,073,621
FanDuel CasinoMotorCity Casino Hotel$14,683,204
$2,877,908
DraftKings CasinoBay Mills Indian Community
$14,109,949
$3,160,629
BetRiversLittle River Band of Ottawa Indians$5,979,680
$1,339,448
WynnBETSault Ste. Marie Tribe of Chippewa Indians$3,896,203$846,734
PokerStars CasinoLittle Traverse Bay Bands of Odawa Indians$3,461,571
$775,392
Golden NuggetKeweenaw Bay Indian Community$3,451,673$708,945
Barstool CasinoGreektown Casino Hotel$3,018,526
$580,913
Four Winds CasinoPokagon Band of Potawatomi Indians$1,649,978$280,790
TwinSpiresHannahville Indian Community$1,380,423$242,954
PointsBet CasinoLac Vieux Desert Band of Lake Superior Chippewa Indians$612,361
$97,978
PlayGunLake.comGun Lake Band of Pottawatomi Indians$455,805$72,929
William Hill CasinoGrand Traverse Band of Ottawa and Chippewa Indians
$274,827$43,972
Totals$89,064,106$18,102,213

**online casino revenue taxed at 20-28% based on earnings

A total of 13 different online casinos were live in Michigan as of the end of May. Michigan’s fourth full month in the legal US market saw the state’s mobile casino apps earn $89,064,106 in monthly revenue.

BetMGM Casino is pulling away from the pack for the top market share spot among Michigan’s online casinos. Licensed to MGM Grand Detroit, BetMGM produced $36,089,904 in May revenue, and is over the $141.6 million mark in 2021 revenue.

Michigan’s online casinos have settled in on a figure of around $89 million in monthly revenue, with that number showing up again for May.

About the Author

Geoffrey Fisk

Geoff Fisk is a San Diego-based freelance writer, specializing in the poker and gambling industries. He’s written for numerous platforms and has traveled the globe as a live poker tournament reporter. Geoff’s interests include the legal online poker industry in the U.S. and abroad.