The February numbers released by the Michigan Gaming Control Board point to big things for Michigan as a legal online gambling market. Michigan’s online casino produced just under $75.2 million in February revenue, putting the state among the biggest mobile casino markets in the US.
Online sportsbooks produced more than $300 million in betting handle for February. Michigan’s mobile sports betting apps posted a net revenue loss for the second straight month, as welcome bonuses and other customer acquisition promotions count against revenue figures.
Revenues should turn around in the right direction soon for Michigan’s online sportsbooks, however, as the Great Lakes State looks primed to content as one of the nation’s top iGaming hubs.
Michigan Online Gambling Tax Revenue 2021
Michigan Online Gambling brought $14,173,868 in state tax revenue to Michigan. The vast majority of that total came from Michigan’s online casino revenue, which yielded $75.18 million in adjusted receipts and produced $14,031,629 in tax revenue for the state.
When Michigan mobile sports betting revenue turns the corner into profitability, combined online sports betting and casino revenue will soar. Since launching on Jan. 22, combined revenue from all online gaming platforms totals more than $18.5 million so far.
Michigan Monthly Online Sports Betting Handle 2021
The first full month of operations for Michigan’s mobile sports betting industry produced $301.8 million in wagering handle from online sportsbooks. That figure puts Michigan among the top US sports betting markets right out of the gate.
FanDuel Sportsbook, DraftKings Sportsbook, and BetMGM emerged as the top contenders for the No. 1 spot in the Michigan mobile sports betting industry in February.
Michigan Monthly Online Sports Betting Revenue 2021
Betting handle represents the total of all wagers placed at Michigan’s online sportsbooks for the month. 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 will eventually move into the black, however, as Michigan’s online sports betting industry moves past the customer acquisition phase.
Michigan Online Sports Betting Revenue February 2021*
|MI Sportsbooks||Casino Partner||Online Betting Handle||Gross Sports Betting Receipts||Adjusted Gross Sports Betting Receipts||Internet Sports Betting State Tax**|
|FanDuel Sportsbook||MotorCity Casino Hotel||$87,219,772||-$78,889||-$5,399,479|
|BetMGM||MGM Grand Detroit||$75,743,280||$5,317,546||$2,448,688||$140,841|
|DraftKings Sportsbook||Bay Mills Indian Community||$72,938,905||-$161,496||-$5,077,961|
|Barstool Sportsbook||Greektown Casino Hotel||$40,281,772||$1,894,529||-$1,302,825|
|PointsBet||Lac Vieux Desert Band of Lake Superior Chippewa Indians||$6,951,264||$1,105,629||-$532,004|
|FOX Bet||Little Traverse Bay Bands of Odawa Indians||$5,782,918||$641,864||-$126,779|
|William Hill||Grand Traverse Band of Ottawa and Chippewa Indians||$5,556,595||$449,317||$16,651||$1,399|
|BetRivers||Little River Band of Ottawa Indians||$3,593,987||$120,307||-$444,032|
|TwinSpires||Hannahville Indian Community||$1,897,812||-$18,098||-$277,366|
|WynnBET||Sault Ste. Marie Tribe of Chippewa Indians||$1,380,374||$128,581||-$63,170|
|Golden Nugget Sportsbook||Keweenaw Bay Indian Community||$497,693||$69,788||-$11,643|
|Four Winds Sportsbook||Pokagon Band of Potawatomi Indians||$12,680||$3,840||-$4,860|
**tribal casinos pay 8.4% state tax; commercial casinos pay 5.88% state tax and 2.62% city tax
Welcome bonuses offered across Michigan’s online sportsbook count against net revenue. With that as a factor, the state’s mobile sports betting apps posted a net loss in February.
Michigan’s mobile sports wagering industry will eventually climb out of the customer acquisition phase, however. Online betting handle cleared $300 million in the first full month of operations, and the future appears bright for Michigan’s mobile sports betting platforms.
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 11 mobile casinos combined to produce $14,031,628.54 in state tax revenue for February. BetMGM Casino led all Michigan online platforms in terms of market share in February and generated $5.26 million in taxes for the state.
Michigan Monthly Online Casino Revenue 2021
With $75.18 million in adjusted gross receipts, the performance of Michigan’s online casinos in February puts the state in position to compete at the top of the US online casino industry.
For perspective, New Jersey, the top online casino market in the US, saw its mobile casino platforms earn $93.8 million in February. Pennsylvania. the No. 2 US online casino market, earned $77.78 in February revenues.
Michigan’s first full month wasn’t far off from those marks, impressive considering the status of the state as a brand new iGaming market. Online casino gaming is an overwhelming success in Michigan so far, as February’s numbers confirm.
Michigan Online Casino Revenue February 2021*
|MI Online Casinos||Casino Partner||Adjusted Gross Receipts||Internet Gaming State Payment**|
|BetMGM||MGM Grand Detroit||$26,912,268||$5,261,868|
|FanDuel Casino||MotorCity Casino Hotel||$14,917,481||$2,754,581|
|DraftKings Casino||Bay Mills Indian Community||$13,722,043||$2,892,795|
|PokerStars Casino||Little Traverse Bay Bands of Odawa Indians||$5,150,935||$871,005|
|Barstool Casino||Greektown Casino Hotel||$4,705,501||$668,647|
|BetRivers||Little River Band of Ottawa Indians||$3,905,410||$642,832|
|WynnBET||Sault Ste. Marie Tribe of Chippewa Indians||$2,289,613||$366,338|
|Golden Nugget||Keweenaw Bay Indian Community||$1,964,634||$314,341|
|TwinSpires||Hannahville Indian Community||$1,066,635||$170,662|
|William Hill Casino||Grand Traverse Band of Ottawa and Chippewa Indians||$360,484||$57,678|
|Four Winds Casino||Pokagon Band of Potawatomi Indians||$193,012||$30,882|
**online casino revenue taxed at 20-28% based on earnings
Nine different online casinos were live in Michigan as of the end of February. The first full month of online casino operations saw BetMGM climb to the top of the mountain in the battle for Michigan market share.
FanDuel Casino and DraftKings Casino both cleared eight figures in adjusted revenue earned. Mobile casinos brought in more than $14 million in tax revenue for the state in February.