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Michigan’s online casinos and poker rooms hit a new income record in August, despite a slight increase in activity across the state’s digital sportsbooks.
The former’s gross gaming income hit an all-time high of $97.2 million, up 5.3 percent from $92.3 million month over month. This resulted in state taxes of $17.9 million and local taxes of $6.9 million.
This current surge may have been boosted by the state’s first full month of live dealer online casino games, which began in July.
With $39.7 million in total gaming revenue and $10.5 million in state and local taxes, BetMGM and MGM Grand Detroit dominated the online casino and poker market.
Online casino and poker continue growth
Eric Ramsey, analyst for PlayUSA said: “Michigan’s online casinos continue to grow, and with live dealer games now in the fold, there is no reason to believe that will end soon.
“For all the interest in sports betting, it is the state’s online casinos that have proven to be the bigger benefit to the state, dwarfing sports betting in tax revenue.”
Despite a minor increase in volume, Michigan sportsbooks have been unable to match the feat in income as the state prepares for four of the busiest months of the year.
In August, online sports betting companies pulled in $192.3 million in wagers, up 2.3 percent from $188 million in July. With $16.3 million in retail gambling in August, Michigan’s online and retail sportsbooks totaled $208.6 million in wagering, up 1.1 percent from $206.3 million the month before.
Gross gaming income from online betting falls
From $19.6 million in July, gross gaming income from online betting plummeted 18.8 percent to $15.9 million. With retail income factored in, the state’s sportsbooks made $17.5 million in August, down 15.6 percent from July. Online bets generated $9.2 million in taxable revenue, generating $757,405 in state and local taxes.
The very little increase in sports betting volume was enough to propel online and retail wagering above $2 billion for the year and all-time.
Since their opening, Michigan sportsbooks have taken in $2.2 billion in wagers, including $2.1 billion this year, $189 million in gross gaming revenue, including $170.8 million in 2021, and $8.9 million in state and local taxes, including $7.4 million this year.
Matt Schoch, lead analyst for PlayMichigan said: “The hot start after launching online betting in January was the key in hitting $2bn in wagering this soon, but it is remarkable growth, no matter how you view it.
“Tax revenue has been somewhat underwhelming so far. As the market continues to mature, and promotional spends begin to slow, hopefully tax revenue improves.”