Michigan igaming momentum continues in new year – Finance

Michigan’s Online Gambling Revenue Reaches New Heights

In a remarkable surge, Michigan’s online gambling sector has achieved record monthly revenues, elevating the combined gross receipts from igaming and sports betting to an impressive $331.2 million (£262.5m/€316.4m) in January. This robust figure signifies a substantial 25.4% increase compared to December’s total, which demonstrates the continuous expansion and consumer interest in the digital gambling landscape.

The revenue breakdown reveals that igaming receipts accounted for $248.2 million, while sports betting contributed $83 million. Notably, January’s figures surpass the previous record of $244 million established in December. Adjusted monthly igaming gross receipts reached $233.1 million, reflecting a remarkable year-on-year increase of 42%.

Explosive Growth in Online Gambling

As reported by the Michigan Gaming Control Board (MGCB), igaming revenue in the state soared to a historic high of $2.9 billion in 2024, underlining the thriving environment for online gaming. The momentum is clearly persisting into the new year, with the top players in the market reporting significant increases in their monthly revenues.

Leading the pack, BetMGM and MGM Grand Detroit achieved market-leading igaming receipts of $640.1 million in 2024, bringing in $66.5 million in January alone, marking an increase from $65.1 million in December and a noteworthy 37% rise year-on-year.

Not far behind, FanDuel and MotorCity Casino reported gross receipts of $62.9 million in January, reflecting an impressive 47% year-on-year growth. Meanwhile, DraftKings, in collaboration with the Bay Mills Indian Community, secured third place with gross igaming receipts of $42.2 million, which represented a 16% increase compared to the previous year.

Sports Betting Insights

The sports betting segment also experienced a significant uptick, with gross receipts soaring to $83 million in January, a marked improvement from the $20.2 million recorded in December. This growth comes despite a 7.1% decline in internet sports betting handle, which decreased from $597.7 million in December to $555.2 million in January.

FanDuel and MotorCity Casino maintained their leading position in the online sports betting arena, generating a total handle of $218.3 million in January. This slight year-on-year increase from $214 million translated to a remarkable 52% jump in gross online sports betting receipts, soaring from $26.7 million to $40.6 million.

DraftKings, alongside the Bay Mills Indian Community, demonstrated impressive growth in online sports betting, with gross receipts doubling from $10.9 million to $22.1 million in January, even as their handle decreased from $166.8 million to $151.7 million year-on-year.

Moreover, BetMGM and MGM Grand Detroit also celebrated a rise in their online sports betting handle, edging up from $73.2 million to $76.2 million year-on-year, resulting in a substantial increase in gross receipts from $5.8 million to $10.3 million.

Additionally, the MGCB reported that total adjusted gross receipts from Detroit casinos reached $102.3 million in January, illustrating a 9% year-on-year increase.

The data published by the state regulator encompasses revenues from both commercial and tribal operators, highlighting a competitive marketplace where 12 commercial and tribal entities currently offer online sports betting, while 15 operators provide igaming services in Michigan.

Regulatory Actions: BetNow Sanctioned

In regulatory developments, the MGCB has issued a cease-and-desist order against BetNow, an offshore operator engaged in unlicensed online sportsbook, casino, and racebook activities. The regulator has determined that BetNow’s operations infringe on multiple key state laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

Henry Williams, executive director of the MGCB, emphasized the importance of consumer protection, stating, “This unlicensed operator not only violates Michigan law, but also exposes consumers to significant risks. Our job is to protect Michigan residents by ensuring that all online gambling is conducted legally and responsibly.”

As the online gambling landscape in Michigan continues to flourish, it is imperative that operators comply with state regulations to create a safe and enjoyable environment for players while also capitalizing on the tremendous growth potential within this dynamic market.