Michigan online sport betting market booming; surpasses $300 million in February

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Michigan is known for many things, including being the only state in the U.S. that borders four of the five Great Lakes, and, of course, its status as the top state in the nation for auto manufacturing. That being said, the Wolverine State can now add to the list, after in February, Michiganders wagered $301.9 million on sports, more than any other state’s residents did in their first full month after launch.

The stellar results extend the record-breaking debut of iGaming in Michigan on January 22, 2021, making it the sixth and earliest state to surpass that watershed, after generating $115.2 million in bets in the first 10 days of online gambling after launch through the end of the month, according to PlayMichigan.

Expected hike:

iGaming and sports betting operators in the midwest state reported $89.2 million in gross receipts for the month of February, with the former accounting for $79.7 million and the latter, $9.5 million.

Executive Director for the Michigan Gaming Control Board (MGCB), Richard S. Kalm said both the state’s residents and visitors “continued to show strong interest in internet gaming and sports betting during a snowy and cold February.” He went on to say that internet gaming taxes more than tripled, but that it was expected with a full month of gaming. Kalm said the increase “means more funding for the City of Detroit, K-12 education, economic development and tribal communities.”

Of the approximately $14.1 million in taxes and payments delivered to the State of Michigan for February, $14 million came from internet gaming taxes/payments and $142,240 from internet sports betting taxes/payments.

Rate shift:

For iGaming, commercial operators contribute 70 percent of the total tax to the state while 80 percent of the total payment is from tribal operators. Rates for the two (tax and payment), range from 20 percent to 28 percent and is based on yearly adjusted gross receipts, according to the state’s gambling regulator.

Meanwhile, for internet sports betting, commercial operators hand over 70 percent of the 8.4 percent tax to the state’s coffers while the city of Detroit receives 30 percent. The state also receives an 8.4 percent payment from tribal operators on net win/adjusted gross betting receipts.

Detroit’s three commercial casinos, including MGM Grand Detroit,  MotorCity Casino, and the Penn National Gaming operated Greektown Casino, reported $4,394,176 in city wagering taxes and municipal services fees for February. Of that, $4,303,875 was from internet gaming taxes and fees and $90,301 was from internet sports betting taxes and fees.

Tribal operators in the state reported wagering payments of $1,336,633 to the tribes’ governing bodies.

According to the MGCB, in February, a dozen operators in Michigan were authorized for either one or both forms of internet wagering.

Still operating under capacity limits, MGM Gran Detroit led the state’s trio of commercial casinos in January and February of 2021, with total adjusted revenue of $33,957,126.82 and $34,429,910.73 respectively. MotorCity Casino was a close second with $33,176,437.46 and $31,239,262.84 while Greektown Casino was a distant third with $19,646,777.44 and $20,792,514.49, according to the MGCB (pdf).

March Madness:

Sports betting in the U.S. is a multi-billion dollar industry, and contributing to that in a major way is the yearly college basketball tournament held by the NCAA, spanning from mid-March to early April. According to the American Gaming Association (AGA), more than 47 million Americans will wager on this year’s edition of  “March Madness” (NCAA Division I Men’s Basketball Tournament).

Currently, sports betting is legal in 25 U.S. states and Washington, D.C. while another 17 states have either active or pre-filed legislation on the books to make it legal.

Source: Worldcasinodirectory, Worldcasinonews

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