Michigan’s Online Gambling Revenue Jumps in August, iGaming Leads Growth

Michigan’s online gambling market continues to thrive, with the state’s iGaming sector leading a significant revenue increase in August. The Michigan Gaming Control Board (MGCB) revealed that the total gross receipts from both online gambling and sports betting hit $224.0 million for the month. This figure represents a 27.7% increase compared to August 2023, and a 1.4% rise from July this year, demonstrating sustained growth in the sector.

The iGaming sector once again proved to be the primary driver of Michigan’s online gambling revenue in August according to the data published by the MGCB. Gross receipts from iGaming alone amounted to $196.7 million, up 29.2% year-on-year, marking the sector’s third-best month in the state’s history. The Michigan Gaming Control Board data indicated that adjusted gross receipts (AGR) from iGaming, which consider promotional spending, totaled $176.9 million. This figure represents a 30.9% increase compared to August 2023.

In comparison, gross sports betting receipts for the month were reported at $27.4 million, reflecting an 18.1% year-on-year increase. When adjusted for promotional spending, sports betting AGR came to $16.3 million, just 2.5% higher than last August. The rise in both sectors highlights Michigan’s robust position within the national online gambling landscape.

August’s figures confirm Michigan’s status as one of the leading online gambling markets in the U.S. The state became the third, after Pennsylvania and New Jersey, to surpass $6 billion in lifetime iGaming revenue. Notably, year-to-date iGaming revenue is trending 24.8% higher than 2023, illustrating the continued momentum in this sector.

Sports Betting and Market Leaders

Michigan’s sports betting market also saw significant activity in August. The total handle for online sports betting amounted to $280.1 million, a substantial 28.2% increase from August last year. However, despite this uptick in betting volume, the hold percentage for sports betting decreased slightly when adjusted for promotions, coming in at 5.82%.

FanDuel continues to dominate Michigan‘s sports betting landscape, handling $101.0 million in wagers in August. The operator reported gross receipts of $11.1 million and an AGR of $7.6 million, putting it well ahead of its competitors. DraftKings ranked second with a monthly handle of $78.1 million, gross receipts of $7.6 million, and $4.4 million in AGR. BetMGM followed in third, with $4.6 million in gross receipts and $2.9 million in AGR from a handle of $41.2 million.

On the iGaming front, BetMGM maintained its leadership position through its partnership with MGM Grand Detroit. The operator reported $52.5 million in gross receipts and $47.2 million in AGR. FanDuel, partnered with MotorCity Casino, came in second with $48.4 million in gross receipts and $43.5 million in AGR. DraftKings rounded out the top three, reporting $36.6 million in gross receipts and $32.9 million in AGR.

Significant Tax Contributions and Land-Based Casino Revenue

The revenue generated by Michigan’s online gambling market contributed significantly to state and local taxes in August. Total taxes paid to the state amounted to $37.8 million, with $36.9 million coming from iGaming and $874,501 from online sports betting. Detroit’s three casinos also paid $9.4 million in taxes to the city, with $9.1 million attributed to iGaming and $287,107 to sports betting. Tribal operators contributed an additional $4.6 million to their respective governing bodies during the month.

Land-based casino operations in Detroit also saw positive results in August. Total revenue for table games, slots, and retail sports betting reached $112.5 million, up 7.3% from last year and 5.8% higher than July. MGM Grand Detroit retained its leading market share in this space, with 48% of the market, followed by MotorCity Casino at 28%, and Hollywood Casino at Greektown with 24%. MGM reported $53.9 million in revenue from table games and slots, up 8.9% from last year, while MotorCity led the retail sports betting segment with $930,952 in adjusted gross receipts.