LAS VEGAS, March 16, 2021 /PRNewswire/ — Michigan’s online sportsbooks extended their record-breaking debut into February with more than $300 million in bets in their first full month after launch, becoming the sixth — and by far the earliest — state to surpass that milestone. This as Michigan became just the third state to hit $75 million in online casino gross receipts, according to PlayMichigan.
“Michigan’s gaming industry traveled a winding road before January’s launch of online sportsbooks and casinos, but it is difficult to imagine how an online debut could have gone any better,” said Matt Schoch, analyst for PlayMichigan.com. “It took less than 40 days to transform Michigan into one of the largest U.S. gaming markets. Operators’ enthusiasm for the state before launch has proven prescient.”
February brought $301.9 million into Michigan’s online sportsbooks, according to official data released Tuesday. The per-day average dipped to $10.8 million in February from $11.5 million in January.
February’s bets yielded $9.5 million in total gross sports betting receipts, down from $13.3 million in January. And taxable revenue fell to a $10.8 million loss, but the state eked out $142,240 in tax revenue.
Combined with $23.7 million generated by retail casinos, Michigan sportsbooks took in $325.6 million in bets in February. That topped Indiana ($273.9 million) in February, the nation’s No. 5 market.
“Michigan has long had the potential to be a Top 5 market, but its rapid ascent shows just how much pent-up demand was unleashed,” said Jessica Welman, analyst for PlayMichigan.com. “As exciting as the early returns are, though, we’re still in a period where enthusiasm is in part a product of legal betting still being novel. That said, there is no reason to believe that the market’s growth will stop after enthusiasm normalizes.”
FanDuel/MotorCity Casino topped the market for the second consecutive month with $87.2 million in online handle, but lost $78,889 in gross sports betting receipts. BetMGM/MGM Grand Detroit’s $75.7 million handle was second. But BetMGM topped gross receipts ($5.3 million) and taxable revenue ($2.4 million).
“The promotional spend by most operators sapped taxable revenue in the short-term but shows just how competitive the market in Michigan is right now,” Welman said. “The extended roster of online operators is perhaps the most distinguishing aspect of the Michigan market. Having so many quality operators has clearly paved the way for this early success, and fierce competition will continue to benefit bettors as the market matures.”
Online casinos
Online casinos and poker enjoyed another month of record receipts, generating $79.7 million in February, up from $29.4 million in January. February’s results will put Michigan as the nation’s No. 2 or 3 market, behind only New Jersey ($103.8 million in January), but on par with Pennsylvania ($80.4 million in January).
Michigan’s online casinos and poker rooms combined to win $2.8 million per day over the 28 days in February, down slightly from $2.9 million per day in January. Adjusted gross receipts of $75.2 million yielded $14 million in tax revenue for the state. BetMGM/MGM Grand Detroit once again led the market with $26.9 million in gross receipts.
“The interest in online casino games in Michigan has been off the charts for a new market, but expect the growth to settle a bit in the coming months,” Schoch said. “Regardless, there has never been a more impressive debut.”
For more: PlayMichigan.com/news.
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The PlayUSA.com Network and its state-focused branches is a leading source for news, analysis, and research related to the market for regulated online gaming in the U.S.
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SOURCE PlayMichigan.com
