Michigan sets records during debut year of gaming
Sportsbooks take $4bn in wagers, online casinos top $1bn in revenue.
Michigan’s sportsbooks and online casinos ended 2021 on a “record-breaking roll,” according to analysis released Tuesday by PlayMichigan.
Bettors in the Wolverine State placed more than $500m in sports wagers in December, the second consecutive month topping that mark.
Last month saw online casinos realize more than $120m in revenue.
December’s results were a “fitting closure” to a year in which online sports betting and online casinos debuted in Michigan, generating $4bn in sports bets and more than $1bn in gross gaming revenue from online casinos over the course of 2021, according to PlayMichigan, which tracks gaming developments in the state.
Michigan’s online sports betting and online casino gaming made its debut on Jan. 22, 2021. The first almost-full-year was among the best in US history.
In less than 12 months, Michigan’s sportsbooks produced $3.97bn in online and retail wagers, which PlayMichigan said likely will rank fifth among all US states that allowed some form of legal sports betting in 2021.
Those sports wagers produced $319.5m in gross revenue.
There were $3.7bn in online wagers made, generating $292.2m in revenue, and $310.6m in retail wagers, up 137.5% from $130.8m in all of 2020.
All told, sportsbooks generated $13.6m in state taxes, according to official data released Tuesday by the Michigan Gaming Control Board.
In December, online sportsbooks took $484.6m in wagers, topping the record $473.8m set in November.
Combined with $30.1m in retail wagering at Detroit-area casinos announced last week, Michigan’s online and retail sportsbooks hit $514.6m in wagering for the month, up 2.8% from the previous record $500.5m in November.
Gross revenue remained relatively high, officials said. Online sportsbooks saw $34.8m in GGR in December, which was down 35.8% from the record $54.1m in November but still the second most in state history.
“Bettors fared much better on their bets than in November, but it was still one of the best months yet for Michigan’s sportsbooks,” Matt Schoch, lead analyst for PlayMichigan.com, said in a statement. “Online sports betting and casinos hit the higher side of expectations in their first year, particularly online casinos. And the last four months for sports betting have really added an exclamation point to the first year.”
Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayMichigan.com, added: “Sports betting still has plenty of room for growth. It is important to remember that Michigan’s bettors are still relatively new to mobile sportsbooks and online-specific forms of betting such as in-game wagering. Meanwhile, sportsbooks continue to expand their customer bases. As familiarity grows, so will the market.”
In December, DraftKings edged FanDuel with $120.3m in online wagers, down from $126.3 m in November. Those bets generated $7.3m in gross revenue, down from $13.1m in November. FanDuel followed with $119.9m in bets in December, up from $115.2m in November. FanDuel once again produced the most online revenue in December with $9.6m.
BetMGM was third, accepting $108.7m in online wagers, up from $100.8m in November. Those bets created $9.4m in gross revenue.
Online casinos, poker make history
Michigan became the third state in US history to generate more than $1 billion in annual revenue from online casinos and poker rooms – and the first to do so in the first year of legalization – after generating $121.8m in GGR in December.
December’s revenue was up 13.2% from $107.6m in November and easily topped the previous record of $109.7m set in October.
Michigan joined New Jersey and Pennsylvania – which each went over $1bn in revenue for the first time in October – as the only states to generate more than $1bn in annual revenue.
For the year, Michigan’s online casinos generated $1.1bn in gross revenue from online casino games and poker rooms, and $279.3m in state taxes.
“It took time for online sports betting to truly ramp up, but online casinos have flourished from the very beginning,” Ramsey assessed. “Few saw Michigan hitting $1bn in revenue over the first year, especially considering that no state had ever reached that level before. To do it in year one has been impressive, creating a significant stream of tax revenue from the state along the way.”
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