Home NewsCasino Michigan Online Gambling Revenue Hits Record $2.30bn by 2023

Michigan Online Gambling Revenue Hits Record $2.30bn by 2023

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The gross online gambling and sports betting revenue for Michigan will reach $2.30bn in 2023 (PS1.81bn/EUR2.11bn), the largest annual amount since the Great Lakes State legalized its market.

The revenue for 2023 is 18.3% more than what Michigan generated in 2022, which was $1.98bn. The revenue for 2023 is also higher than the $1.40 billion generated in the first year that legal gambling was allowed, which occurred in 2021.

The figures reported include both commercially licensed and tribally-licensed igaming operators.

This is broken down into $1.90bn in total revenues from gaming and $420.4m of gross receipts for sports betting. These figures also represent new records for the year, even though total sports betting handled remained at $4.60bn.

The adjusted gross revenue (AGR) for igaming, sports betting and other online gaming was 1.96 billion dollars after accounting for promotional deductions. The total was an increase of 18.8% over the previous year.

The AGR for igaming was $1.73bn and the adjusted gross receipts from sports betting were $223.5m.

Operators paid $369.8m total in taxes. The tax includes 354.0m dollars in taxes and fees for igaming and 15.8 million dollars from sports betting. Detroit’s casinos collected $95.8m from igaming taxes and sports betting, while the tribal operators contributed $43.1m.

Michigan breaks monthly records for December

Michigan, aside from its record revenue in 2023, ended the year with all-time records for December.

The total gross revenue from online gambling in December was 181.4 million dollars, which is the highest ever monthly figure. The December 2022 total was 20,4% higher than the November 2023 figure.

The igaming industry was the main driver of growth, with gross revenues reaching a new record high of $181.4m. The gross sports betting revenue also hit a monthly record of $61.1m in December. Handle also surpassed a $583.0m.

Total online gambling revenue after adjustments was $198.4 million, an increase of 29.8% on the previous year. Igaming revenue was $163.3 million and gross betting revenues $35.1 millions.

Tax payments per month totaled $36.7m. $34.1m came from online gaming and $2.6m was generated by sports betting. Detroit casinos received $9.4m, and tribal operators $4.33m.

Detroit Casino revenue to decline in 2023

Online gambling figures are published after the land-based gaming statistics in Michigan. The revenue from Detroit’s three commercial casinos fell 3.1% on an annual basis to reach $1.24bn by 2023.

Table games and Sports Betting both saw declines. Slots revenue increased marginally to $984.1m from $983.7m the year before. Table games revenue fell 12.7% at $238.7m, and retail sports betting gross receipts (QAGR), which are adjusted to reflect the amount of money wagered on sports events, dropped 25.7%.

In December, the total revenue of $116.2m was an increase of 5.7%. The revenue from table and slot machines increased by 2.9%, to $111.4m. Sports betting QAGR soared to $4.8m.

Michigan takes action against illegal operators

The Michigan Gaming Control Board has also sent letters of cease and desist to three companies that are operating illegally in Michigan.

The MGCB has named PredictionStrike, Inc. of New York City, VGW LuckyLand from California and Sweepstakes Limited in Cyprus (Stake.us). The regulator has contacted each of them in the last few months.

MGCB stated that operators in Michigan were providing online gambling without a license.

Stake.us was flagged as an online lottery, PredictionStrike for sports betting and igaming. VGW offered games that allowed players to wager money for the chance to win money.

Operators reprimanded for violating laws

The MGCB stated that each operator had violated several laws by offering these services. The Michigan Gaming Control and Revenue Act and Michigan Penal Code are among the laws that apply.

The MGCB has also stated that operators have taken measures to stop Michigan residents from playing on their sites.

Henry Williams, executive director of the MGCB said: “Gambling laws are there for a good reason. Illegal gambling is not welcomed in Michigan.”

We do not want to see businesses that skirt the laws having access Michigan residents and leave them vulnerable, because they play on unregulated websites that leaves them without recourse. They also siphon money away from local communities as they don’t pay taxes.

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