Michigan online gambling operators report $114.2 million in June revenue
Online gaming and sports betting operators in Michigan reported $114.2 million in revenues for June, according to figures released Monday by the Michigan Gaming Control Board.
Of that total, operators reported $89.2 million in gross receipts tied to internet gaming. Online sports betting operators, meanwhile, netted $25 million and reported a total handle — or, amount wagered — of $235.1 million last month.
June receipts tied to the two forms of online gambling roughly matched May, according to the gaming control board.
"Summer is here, and Michigan is reopening after the pandemic restrictions so there are many entertainment opportunities," Henry Williams, the board's executive director, said in a statement. "The slight tenth of a percent decline from May to June shows internet gaming and online sports betting continues to draw Michigan residents' and visitors' interest."
Taxes and payments from online gaming and sports betting are based on adjusted gross receipts, which include deductions for the monetary value of free play incentives provided to and wagered by bettors. Michigan's operators paid approximately $14.6 million in taxes and payments to the state last month, $13.7 million from internet gaming and $927,575 from internet sports betting.
Detroit's three casinos — MGM Grand Detroit, Greektown Casino and MotorCity Casino Hotel — reported city wagering taxes and municipal services fees of $3.6 million from online gambling revenues in June. Operators of Michigan's tribal casinos reported $1.9 million in wagering payments to the tribes' governing bodies.
During June, 13 operators were authorized for one or both forms of online gambling. A 14th operator, FireKeepers Casino, was approved for full launch July 12.
But although online sports and casino betting fell slightly in June, revenue from sports betting made a "significant jump," according to PlayMichigan.com, which covers online gambling in the state. And industry analysts expect growth in the fall following a seasonal drop-off in the summer.
“Michigan’s sportsbooks grew so quickly from January through March that the slowdown that has followed might feel more dramatic than the reality,” Jessica Welman, analyst for the PlayUSA.com network, said in a statement. “Sportsbooks remain in excellent position for a ramp up when football season approaches. Until then, they will have to rely on opportunities such as the Olympics and the NBA Finals to stoke interest.”
April, May and June typically are the slowest sports betting months of the year, according to industry analysts. Since peaking in March, Michigan had the sharpest decline of any sports betting market in the country, according to Play Michigan.
Still, the state saw an increase in tax revenue tied to online sports betting.
"If there has been a disappointment with Michigan's launch, it's that tax revenue gains have lagged," said PlayMichigan.com analyst Matt Schoch. "So hopefully, this will continue into the fall, when we know revenue from sports betting will make a big leap forward."
At the same time, revenue from online gaming fell to its lowest level since February..
On the online sports betting side, operator FanDuel and its partner casino, MotorCity, was the market leader with a total handle of nearly $77.3 million in June.
On the internet gaming side, MGM Grand's BetMGM platform was the leader, with gross gaming revenue of more than $33.7 million for the month.
The gaming control board last week reported that the three Detroit casinos collectively generated $108.1 million in aggregate revenue from table games, slots and retail sports sport betting for June.