Michigan’s iGaming Market Continues To Run Strong

Article by : Erik Gibbs Apr 18, 2024

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Michigan’s online casino market is on a roll, setting a new revenue record in March. The figures, released recently, showcase the state’s burgeoning iGaming sector, reflecting a significant surge in online gambling activities.

March proved to be a landmark month for Michigan’s online casinos, with total revenue soaring to an impressive $215.15 million. This achievement marks a substantial increase from the previous month’s record of $188 million, highlighting the sector’s rapid growth.

When considering both iGaming and online sports betting, Michigan’s adjusted gross receipts (AGR) for March amounted to $221.1 million. Of this total, iGaming contributed significantly, generating an adjusted gross revenue (AGR) of $194.5 million, reflecting a notable 25.8% increase year over year.

However, sports betting experienced a slight downturn, with AGR declining by 15.2% compared to March 2023.

The upward trajectory of Michigan’s online gambling market is evident when examining the broader context. In 2023, the state’s online gambling revenue totaled an impressive $1.92 billion. So far in 2024, online operators have already amassed $705.2 million in revenue.

Commercial operators in Michigan are not only driving revenue growth but also contributing substantially to the state’s coffers. In March alone, these operators contributed $39.4 million in taxes and payments, reinforcing the positive economic impact of the online gambling industry.

Detroit’s three commercial casinos also experienced a boost in revenue, collectively generating $123.9 million in March. This represents a 3.9% increase compared to the same period last year.

Among the key players in Michigan’s online casino market, FanDuel Casino emerged as a frontrunner, raking in $57.6 million in revenue in March. Close behind, BetMGM and DraftKings reported revenues of $54.7 million and $40.4 million, respectively.

These figures point to the intense competition among operators vying for market share in Michigan’s online gambling space.

Despite the impressive revenue figures, operators are also investing heavily in bonuses and promotions to attract and retain customers. Total expenses in this regard exceeded $20.6 million.

Michigan’s online casino market boasts a diverse landscape. There are 15 operators, including commercial and tribal entities.

Looking at the broader gaming industry landscape, online alternatives are increasingly gaining prominence. In 2023, the total revenue of the commercial gaming industry in the US reached $66.5 billion, marking a 10% increase from the previous year. Online alternatives accounted for nearly a quarter of this revenue.