As Michigan’s online sports betting and online casino gambling platforms continue to increase their handle month by month, Michigan remains one of the top iGaming markets in the country.
Michigan’s sportsbooks and online casinos grew by leaps and bounds in 2022. Michigan sportsbook handle was 30-50% higher in most months in 2022 than in 2021. Sportsbooks’ adjusted gross revenue (AGR) was 53% higher in April 2022 than in April 2021. May 2022 AGR was 127% higher than the previous May. In November 2022, sportsbook AGR decreased compared to November 2021.
In 2022, Michigan’s sportsbooks paid 181% of the state and city taxes that they paid in all of 2021. 2022 shaped up to be a profitable year for Michigan’s sportsbooks.
Online casinos made just over $1 billion in 2021, that number exceeded $1.4 billion.
Retail casinos in Detroit – MGM Grand Detroit (BetMGM), MotorCity Casino (FanDuel), and Greektown Casino (Barstool) – brought in a total of $1.257 billion in revenue for 2022. This was slightly less than in 2021, but the numbers were realistically nearly identical.
Most of Michigan’s internet gambling tax revenue comes from online casinos. That pattern continued through 2022. It balances the seasonality of sports betting, too, maintaining a steady revenue stream.
Michigan Combined Online Sports Betting And Casino Tax Revenue 2023
Michigan online gambling platforms brought in $209 million in taxes to the state and $59.5 million to Detroit in 2021. Online casinos paid about 98% of that tax revenue. That pattern continued in 2022.
December 2022 set yet another new record for monthly state and city tax revenue, generating nearly $39 million. Combined state and city tax revenue in 2022 exceeded $387 million, far eclipsing the total of $268 million in 2021.
In 2022, Michigan’s online casinos paid $289.2 million in taxes to the State and $77.8 million to Detroit. That comes out to about a $24.1 million tax payment to Michigan and a $6.5 million tax payment to Detroit each month.
In 2022, Michigan’s mobile sportsbooks paid out $13.7 million in taxes to Michigan and $6.7 million to Detroit. Online casinos still pay 93-99% of a month’s tax revenue. So, online casinos are Michigan’s major moneymakers.
Michigan Monthly Online Sports Betting Handle 2023
In 2022, online sports betting handle dropped through summer but has increased back to normal numbers with the return of football. In April 2022, sports betting handle was 49% higher than the previous April. Even the summer season has grown year over year.
Betting handle is all the money that bettors wager at sportsbooks. For 2021, Michigan sports betting apps generated $3.7 billion in handle. For 2022, Michigan mobile sportsbooks generated $4.6 billion in handle.
DraftKings Sportsbook, BetMGM, FanDuel Sportsbook generate a majority of the state’s online sports betting handle. In 2022, FanDuel Sportsbook (MotorCity Casino) has seen the most handle at $1.4 billion. DraftKings Sportsbook (Bay Mills Indian Community) and BetMGM (MGM Grand Detroit) have made around $1.2 million and $991 million in handle respectively.
So, Michigan’s sports betting industry is still dominated by the same three brands as most of the other American markets.
Michigan Monthly Online Sports Betting Revenue 2021
The revenue figure that Michigan Sharp reports is Adjusted Gross Sports Betting Receipts or AGR. That figure takes the money left over after paying winnings and subtracting promo credits from welcome bonuses, pre-launch offers, and other offers.
With those promo credits subtracted from the Gross Sports Betting Receipts, Michigan’s mobile sportsbooks posted net revenue losses in February. Showing losses is normal for sportsbooks during major sporting events. February 2022 saw negative AGR because of all the Super Bowl promotions, and we expect to see the same happen in February 2023.
Sportsbook brands use major events to attract new customers. So, negative AGR in February should be unsurprising even in mature markets.
Michigan Online Sports Betting Tax Revenue
*Tribal casinos pay 8.4% state tax; commercial casinos pay 5.88% state tax and 2.62% city tax.
2022 tax revenue followed the same pattern as adjusted gross revenue. It reached new highs in 2022 and is unlikely to see many negative values. Keep in mind that in months with negative adjusted gross revenue, tax revenue can still be positive. While sportsbooks as a group can show losses, some sportsbooks can generate enough profit to pay taxes. This comes from various reliances on bonuses across Michigan’s sportsbooks.
In 2022, Michigan sportsbook operators paid $13.7 million in taxes to the state and $6.7 million in taxes to Detroit.
Tax revenue from Michigan online sportsbooks has steadily increased since its launch. May 2022 is the first summer month to make a six-figure state tax payment. It shows how much sports betting handle has grown since the summer of 2021.
Michigan Monthly Online Casino Revenue 2023
Michigan’s Gaming Control Board doesn’t report online casino handle like it does sports betting. However, online casino AGR still reveals its popularity and profitability. Overall, the 2022 AGR numbers far surpassed the total AGR in 2021.
Online casino revenue has also increased steadily as online casinos have acquired more customers. Online casino revenue isn’t seasonal like sports betting revenue is. So, its linear growth pattern is a higher and more reliable source of revenue for online gambling companies and tax revenue for states.
Michigan Monthly Online Casino Tax Revenue
The state taxes online casino revenue using a tiered system. All mobile casino operators pay between 20-28% of adjusted gross revenue for Internet Gaming State Tax Payment. Tax revenue in 2022 has already surpassed 2021’s state and city tax revenue.
In 2022, online casinos generated $289.2 million in state tax revenue and $77.8 million for Detroit. So, the future looks bright for online casino gaming in Michigan.
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