Michigan Online Gambling Revenue: Sports Betting & Casino

Michigan’s online sports betting and online casino gambling platforms continue to bring in steady numbers for the summer months. The Great Lakes State continues to be one of the top iGaming markets in the country.

After a slight dip in July, the state’s mobile sportsbooks generated over $192.2 million in betting handle for the month of August. This was a 2.3% increase from the previous month and nearly $1.88 billion in wagers year-to-date.

Sports betting revenue dropped to $7.56 million, the lowest month since revenue swung positive beginning in March. Those numbers are expected to rebound with the start of football in the month of September.

Online casino revenue jumped 5.4% from July to August. The month saw total revenue at over $87.5 million, which matches the same figures across the spring season.

As of August 2021, Gun Lake Band Tribal Community launched their local online sportsbook, Play Gun Like. This puts the total number of online sportsbooks in the state of Michigan at 15.

The Michigan Gaming Control Board released the latest monthly revenue figures in the middle of September.

Michigan Combined Online Sports Betting And Casino Tax Revenue 2021 

Michigan online gambling platforms brought $18,421,281 in state tax revenue to Michigan in August. As per usual, online casinos produced the majority of the state’s monthly internet gaming taxes, accounting for approximately 97% of that figure.

Michigan’s online casino revenue had a 5.4 increase from July to August at $87,579,462. Contributing to the increase was MGM Grand Detroit seeing a 17.4% change to over $35.7 million in revenue.

Michigan mobile sports betting revenue had a large drop to $7,557,365 for the month of August. Year-to-date in 2021, total online sports betting revenue sits at $60,485,603.

Michigan Monthly Online Sports Betting Handle 2021

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

After one of the slowest months for mobile sportsbooks, there was a slight increase in August with $192,283,791 received in total bets. This is still significantly lower than a steady spring that consistently saw over $235 million.

DraftKings Sportsbook, BetMGM, FanDuel Sportsbook, and Barstool Sportsbook continue to thrive as the most popular choices for online sports betting in the Wolverine State. They account for nearly 88% of the total handle year-to-date.

August’s wagers brought total online betting handle to over $1.88 billion so far in 2021.

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, and that trend has persisted through the rest of 2021 so far.

Michigan’s mobile sports betting apps generated $12,420,192 in revenue for July. That number represents a 25.9% dropoff in month-to-month revenue versus June. An even sharper dropoff of 39.2% happened between July to August with revenue at $7,557,365.

Year-to-date revenue stands at $60,485,603 with the August figures added. The state has collected $3,948,343 in online sports betting taxes so far in 2021.

Michigan Online Sports Betting Revenue August 2021*

MI SportsbooksCasino PartnerOnline Betting HandleAdjusted Gross Sports Betting ReceiptsYTD Revenue
DraftKings SportsbookBay Mills Indian Community$61,366,232$2,162,832
$4,972,306
FanDuel SportsbookMotorCity Casino Hotel$54,514,964
$3,253,281$23,669,531
BetMGMMGM Grand Detroit$43,668,289$1,973,789
$24,514,999
Barstool SportsbookGreektown Casino Hotel$13,134,693$520,921$9,071,449
Caesars SportsbookGrand Traverse Band of Ottawa and Chippewa Indians
$10,025,422
-$571,197
-$133,224
PointsBetLac Vieux Desert Band of Lake Superior Chippewa Indians
$6,193,759$118,000-$852,802
BetRiversLittle River Band of Ottawa Indians$3,138,513
$138,907
-$387,543
FOX BetLittle Traverse Bay Bands of Odawa Indians$2,494,696$250,549$1,026,378
FireKeepers SportsbookNottawaseppi Huron Band of Pottawatomi Indians$1,105,872$9,864-$50,213
TwinSpiresHannahville Indian Community$1,004,706$4,949-$496,764
WynnBETSault Ste. Marie Tribe of Chippewa Indians$889,496$25,182$208,314
Golden Nugget SportsbookKeweenaw Bay Indian Community
$668,503-$37,767
$17,676
Four Winds SportsbookPokagon Band of Potawatomi Indians
$483,992-$245,089-$1,062,408
Play Gun LakeGun Lake Band Tribal Community$455,331-$12,094-$12,094
Totals$192,283,791$7,557,365
$60,485,603

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

Michigan’s mobile sports wagering apps generated a combined $7,557,365 in revenue in August. This equates to $540,706 in tax revenue, which is the lowest month since April 2021.

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 15 mobile sports betting operators are still in the red, as customer acquisition promos led to negative revenues for many of the state’s sports betting brands in January and February.

DraftKings Sportsbook saw the highest total with $61,366,232 in their online betting handle. Barstool Sportsbook is about to reach $10 million in annual revenue, totaling just over $9 million after tallying August’s numbers.

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 15 mobile casinos combined to produce $$17,880,575 in state tax revenue for July.

Since launching on Jan. 22, 2021, Michigan’s online casinos have generated $120,135,576 in tax revenue for the state.

Michigan Monthly Online Casino Revenue 2021

Michigan’s 15 online casinos generated a combined $87,579,462 in August revenue. Annual revenue for 2021 has now cleared the $600 million mark after tallying the numbers in for August.

Online casino tax revenue cleared the $100 million mark at the end of July, as mobile casino legalization continues as a major win for both casino operators and the state.

Michigan Online Casino Revenue By Operator August 2021*

MI Online CasinosCasino PartnerAdjusted Gross ReceiptsYTD Revenue 2021
BetMGMMGM Grand Detroit
$35,749,133$224,104,297
FanDuel CasinoMotorCity Casino Hotel$12,805,281$105,799,376
DraftKings CasinoBay Mills Indian Community$11,351,238$101,890,558
BetRiversLittle River Band of Ottawa Indians$6,430,135$41,074,932
Golden NuggetKeweenaw Bay Indian Community$4,779,194$25,881,261
WynnBETSault Ste. Marie Tribe of Chippewa Indians$4,525,383
$26,803,426
PokerStars CasinoLittle Traverse Bay Bands of Odawa Indians$2,755,788
$28,352,592
Barstool CasinoGreektown Casino Hotel$2,289,567$21,490,011
Four Winds CasinoPokagon Band of Potawatomi Indians$2,237,016$11,086,788
TwinSpiresHannahville Indian Community$1,207,304$9,650,824
PlayGunLake.comGun Lake Band of Pottawatomi Indians$1,197,804$3,092,459
FireKeepers CasinoNottawaseppi Huron Band of Pottawatomi Indians$952,695$1,871,585
Caesars CasinoGrand Traverse Band of Ottawa and Chippewa Indians
$822,344$3,036,157
PointsBet CasinoLac Vieux Desert Band of Lake Superior Chippewa Indians$476,581$2,117,200
Totals$83,107,169$518,672,004

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

A total of 15 different online casinos were live in Michigan as of the end of July. The state’s mobile casino apps earned $87,579,462 in monthly revenue.

Year-to-date, BetMGM Casino accounts for nearly 37% of all revenue produced by Michigan’s online casinos in 2021. The online gaming extension of MGM Grand Detroit has produced more than $224 million in revenue in 2021, yielding over $43.4 million in taxes for the state.

About the Author