iGaming drives Michigan’s online gambling market growth in August??
Michigan’s online gambling industry continued its growth trajectory in August, with the latest figures from the Michigan Gaming Control Board (MGCB) highlighting a substantial year-on-year increase. Total revenue from online gaming and sports betting reached $224 million (€202.3 million), marking a 27.7 percent rise compared to the same period last year. This growth was predominantly driven by the iGaming sector, which recorded its third-highest gross gaming revenue (GGR) ever.
iGaming alone contributed $196.7 million (€177.6 million) to the overall revenue, a 2.8 percent increase from July and 29.2 percent higher than August 2023. After accounting for promotional spending, the adjusted gross revenue (AGR) for iGaming stood at $176.9 million (€159.7 million), representing a year-on-year increase of 30.9 percent. The iGaming sector also dominated the tax contributions, with $36.9 million (€33.3 million) of Michigan’s total $37.8 million (€34.1 million) in online gaming and sports betting tax revenue coming from this segment.??
Sports betting gains momentum
In addition to the iGaming sector, Michigan’s online sports betting market grew significantly. Online sportsbooks handled $280.1 million in wagers, reflecting a 28.2 percent increase from the previous year. Gross sports betting receipts were reported at $27.4 million, up 18.1 percent from August 2023. However, the adjusted sports betting AGR saw a modest rise of 2.5 percent, as operators continued to invest heavily in promotional activities.
FanDuel led the sports betting market, handling $101 million in wagers and generating $11.1 million in gross revenue. DraftKings followed with $78.1 million in wagers and $7.6 million in gross revenue, while BetMGM took third place with $4.6 million in GGR from $41.2 million in bets.
BetMGM, FanDuel dominate market share
BetMGM continues to lead the iGaming market in Michigan through its partnership with MGM Grand Detroit. The operator reported $52.5 million in gross receipts and $47.2 million in AGR. FanDuel, partnered with MotorCity Casino, followed closely with $48.4 million in GGR and $43.5 million in AGR. DraftKings secured the third spot with $36.6 million in GGR and $32.9 million in AGR. Notably, BetRivers and Caesars Palace achieved new monthly revenue highs, with $13 million and $12 million respectively.
In the sports betting arena, FanDuel remained the top performer, while BetMGM and DraftKings vied for second and third places. The competition in Michigan’s online gambling market is intensifying as operators strive to increase their market shares through strategic investments and promotions.
Record-breaking iGaming milestone
Michigan’s iGaming sector has joined Pennsylvania and New Jersey in surpassing $6 billion in all-time revenue, a milestone achieved within a relatively short period. Year-to-date, the state’s iGaming revenue is 24.8 percent higher than last year, showcasing the significant growth potential of the market. This continued upward trend suggests a bright future for the online gambling industry in Michigan.
Land-based casinos see modest gains
While the spotlight was on the online sector, Detroit’s commercial land-based casinos also experienced growth. August’s aggregate revenue from table games, slots, and retail sports betting reached $112.5 million, a 7.3 percent increase year-on-year. Table games and slots contributed $110.8 million, up 5.9 percent from last year, while retail sports betting revenue surged by 427.7 percent to $1.7 million.
MGM retained its position as the market leader with a 48 percent share, followed by MotorCity at 28 percent and Hollywood Casino at Greektown at 24 percent. The casinos collectively paid $17.3 million in gaming-related taxes to the City of Detroit, with additional contributions from sports betting taxes.
Outlook
The sustained growth in Michigan’s online gambling market, coupled with a stable performance from land-based casinos, positions the state as a key player in the U.S. gambling landscape. With iGaming and sports betting continuing to gain traction, Michigan is poised for further growth in the coming months.?
