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. February marked the first full month of operations for Michigan’s iGaming industry.

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 SportsbooksCasino PartnerOnline Betting HandleGross Sports Betting ReceiptsAdjusted Gross Sports Betting ReceiptsInternet Sports Betting State Tax**
FanDuel SportsbookMotorCity Casino Hotel$87,219,772
-$78,889
-$5,399,479
BetMGMMGM Grand Detroit$75,743,280$5,317,546$2,448,688$140,841
DraftKings SportsbookBay Mills Indian Community
$72,938,905
-$161,496
-$5,077,961
Barstool SportsbookGreektown Casino Hotel$40,281,772
$1,894,529
-$1,302,825
PointsBetLac Vieux Desert Band of Lake Superior Chippewa Indians
$6,951,264
$1,105,629
-$532,004
FOX BetLittle Traverse Bay Bands of Odawa Indians$5,782,918$641,864-$126,779
William HillGrand Traverse Band of Ottawa and Chippewa Indians
$5,556,595

$449,317
$16,651
$1,399
BetRiversLittle River Band of Ottawa Indians$3,593,987$120,307-$444,032
TwinSpiresHannahville Indian Community
$1,897,812-$18,098-$277,366
WynnBETSault Ste. Marie Tribe of Chippewa Indians$1,380,374
$128,581
-$63,170
Golden Nugget SportsbookKeweenaw Bay Indian Community
$497,693
$69,788
-$11,643
Four Winds SportsbookPokagon Band of Potawatomi Indians
$12,680
$3,840
-$4,860
Totals$301,857,054$9,472,919-$10,774,780$142,240

**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 CasinosCasino PartnerAdjusted Gross ReceiptsInternet Gaming State Payment**
BetMGMMGM Grand Detroit
$26,912,268
$5,261,868
FanDuel CasinoMotorCity Casino Hotel$14,917,481$2,754,581
DraftKings CasinoBay Mills Indian Community
$13,722,043$2,892,795
PokerStars CasinoLittle Traverse Bay Bands of Odawa Indians$5,150,935$871,005
Barstool CasinoGreektown Casino Hotel$4,705,501
$668,647
BetRiversLittle River Band of Ottawa Indians
$3,905,410$642,832
WynnBETSault Ste. Marie Tribe of Chippewa Indians$2,289,613
$366,338
Golden NuggetKeweenaw Bay Indian Community$1,964,634
$314,341
TwinSpiresHannahville Indian Community$1,066,635
$170,662
William Hill CasinoGrand Traverse Band of Ottawa and Chippewa Indians
$360,484
$57,678
Four Winds CasinoPokagon Band of Potawatomi Indians
$193,012
$30,882
Totals$75,188,016$14,031,629

**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.

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.