Michigan iGaming Sets Monthly Revenue Record, Online Sportsbook Win Retracts

Posted on: February 22, 2023, 12:26h. 

Last updated on: February 22, 2023, 12:41h.

Devin O'Connor @CasinoorgDevinO Read More

Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Michigan iGaming revenue reached a new monthly record in January as online casinos operated by commercial and tribal interests won nearly $153.7 million.

Tallying $153,694,392.91, officials with the Michigan Gaming Control Board (MGCB) said January’s iGaming haul represents a 27% year-over-year increase from the $121.2 million the online casinos won in January 2022. January 2023 iGaming also beat the state’s previous monthly online gaming record of $152.8 million set in December 2022.

The online operating partners of Detroit’s three brick-and-mortar commercial casinos — MGM Grand Detroit, MotorCity, and Hollywood Casino at Greektown — continued to dominate the internet segments. BetMGM won $52.8 million on its online casino platform in January, while MotorCity’s FanDuel casino generated gross gaming revenue (GGR) of $28.9 million, and Hollywood’s Barstool site won a little more than $4.1 million.

The tribal iGaming was led by the Bay Mills Indian Community and the tribe’s Bay Mills Resort & Casino, which is partnered online with DraftKings. The iGaming and sportsbook operator won $26.2 million from its interactive slots and table games last month. The Little River Band of Ottawa Indians and its Little River Casino Resort and iGaming partner Rush Street Interactive was next at about $8.6 million in iGaming proceeds.

Online and Upwards

Commercial iGaming and online sports betting continue to inch closer to Detroit brick-and-mortar casino revenue.

In 2022, Detroit’s three brick-and-mortar commercial casinos collectively generated GGR of $1.28 billion. The retail revenue includes income from slot machines, table games, and in-person sports betting.

The commercial iGaming and online sportsbooks accounted for the bulk of the online revenue. BetMGM, FanDuel, and Barstool won $899.7 million from iGaming and $285 million from internet sports betting for a total online win of $1.18 billion.

Sportsbook Drawback

As for January 2023 online sports betting, oddsmakers fared significantly worse than they did in January 2022. The MGCB said net win — aka “hold” — dropped more than 31% from $48.8 million in January 2022 to $33.6 million last month.

Handle, or the total amount wagered, fell 4.3% year-over-year to $475.6 million.

The three commercial online sportsbooks won $23.2 million. MotorCity’s FanDuel Sportsbook was responsible for $19.9 million of the win on total wagers in excess of $150 million.

BetMGM kept $3.4 million of the $110.5 million bet during the month. Hollywood’s Barstool Sportsbook reported a net loss of about $66K on $29.5 million bet.

January was the first month when Michigan faced sports betting competition in neighboring Ohio. Retail and online sportsbooks in the Buckeye State went live on January 1.

iGaming and online sportsbooks generated $26.1 million in state taxes and payments in January. The City of Detroit additionally collected $7.5 million from the online commercial gaming platforms.