Michigan’s online gambling market achieved a significant milestone in May, with internet gaming (iGaming) and internet sports betting gross receipts totaling $301.43 million, marking a month-on-month rise of 3.7%. This growth surpasses the $290.7 million reported in April, as noted by the Michigan Gaming Control Board (MGCB), highlighting a continuous growth pattern in both sectors, notably driven by sports betting.
iGaming Revenue Growth
The MGCB report indicates that Michigan’s iGaming sector experienced notable growth, with May’s gross receipts reaching $251.47 million, an increase from April’s $248.1 million. This growth is largely attributed to the demand for online slots and table games. The adjusted gross receipts (AGR) for iGaming rose to $236.2 million, marking a 1.3% increase from April. Year-over-year, iGaming AGR grew by an impressive 32.2%, reflecting a positive shift in Michigan’s online casino industry.
Sports Betting Performance
Simultaneously, Michigan experienced a boost in its sports betting sector in May. Gross sports betting receipts increased to $49.96 million, up from April’s $42.6 million. The adjusted gross receipts for sports betting reached $35.6 million, a 32.9% increase from April. Year-over-year, sports betting AGR increased by 26.6%, underscoring the sector’s growing popularity and potential.
Despite a 7.6% decrease in total sports betting handle in May, falling to $386.1 million from April’s $417.6 million, the figure remains strong within Michigan’s online sports betting context, with the sports betting hold at 12.95%.
Contributions to State and Local Revenues
This growth led to increased contributions to state and local governments. In May, operators reported $51.1 million in state taxes and payments, with iGaming taxes accounting for $49.1 million and sports betting taxes contributing $2 million. Additionally, the City of Detroit collected $13.35 million in wagering taxes and fees from its three commercial casinos, with $12.7 million coming from iGaming. Tribal operators contributed $5.8 million to their respective governing bodies.
Unlicensed Gambling Crackdown
Despite the industry’s success, the MGCB continues to tackle illegal gambling operations. The board issued cease-and-desist orders to five unlicensed gambling platforms targeting Michigan residents. These platforms, including BoVegas Casino and Cherry Gold Casino, were accused of violating state laws and given a 14-day compliance deadline. The MGCB, alongside the Michigan Department of Attorney General, is prepared to take legal action if compliance is not met, maintaining a regulated gambling environment.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com