Michigan’s commercial and tribal casino operators reported a combined total of $210.4 million from internet gaming and sports betting for September. The total was an increase of 20% compared to August with the start of the NFL football season on Sept. 7.
The Michigan online casinos reported a total of $166.4 million while sports betting recorded $44 million. In August, iGaming gross receipts were $152.2 million with sports betting at $23.2 million. Sports betting hits an expected downturn during the summer months.
After paying out winnings and other authorized deductions, operators were left with a total adjusted gross receipt (AGR) of $168.5 million, $149.8 million from iGaming and $18.7 million from sports wagering – “representing a 9.2% and 17.8% increase, respectively, compared to August 2023,” the Michigan Gaming Control Board reported.
Compared to September 2022 reported revenues, iGaming was up by 29.3% and sports betting was down by 31.1%.
Online casinos and Michigan sports betting operators reported submitting $32.6 million in taxes and payments to the State of Michigan during September:
- Internet gaming taxes and fees: $31.3 million
- Internet sports betting taxes and fees: $1.3 million
The three Detroit casinos reported paying the city $7.97 million in taxes in August:
- Internet gaming taxes and fees: $7.5 million
- Internet sports betting taxes and fees: $470,071
Tribal operators reported paying $4 million to governing bodies in September.
The State of Michigan Casinos
Michigan has a total of 26 casinos, a mix of commercial and tribal operators. Fifteen of those casinos provide iGaming and online sports betting in the state.
Online casinos remain the primary source of gambling revenue for the state over sports betting. The state launched sports betting around three years ago.
The Great Lake State is one of six that has legal online casino gaming. Connecticut, New Jersey, Pennsylvania, West Virginia, and Delaware are the others.
According to the American Gaming Association’s Commercial Gaming Revenue Tracker, in August, the combined revenue from iGaming operations from all six states saw an impressive 23.4 percent year-over-year increase, reaching $495.8 million. Every legal iGaming market, except for Delaware, reported annual growth.
U.S. iGaming Expansion
Rhode Island will join the online casino business next year with Bally’s Corp. and International Gaming Technology managing iGaming in the state. State officials predict the venture could generate $130 million in additional gross gaming revenue annually at market maturity. The state already has two commercial brick-and-mortar casinos operated by Bally’s.
New York State Senator Joseph Addabbo said he will make another attempt to legalize New York online casinos next year. His bill will also introduce online lottery sales.
Online sports betting is already available in the state which applies a 51% tax rate on revenue. Last year, sports betting generated nearly $700 million in tax revenue for New York.
