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Michigan online market debuts with GGR of $42.7m in January

News

Online betting and gaming operators in Michigan brought in a combined $42.7m in revenue for their first 10 days of activity in the state, up to 31 January.

Online sports betting and gaming launched on 22 January, when nine operators were granted approval by the Michigan Gaming Control Board (MGCB) to offer online products. 

From that date until the end of the month, sports betting brought in $13.3m on handle of $115.2m. Online gaming revenue, meanwhile, came to $29.4m over nine days.

Looking at sports betting, FanDuel’s sportsbook in partnership with MotorCity Casino led the way in handle, at $32.6m. However, the operator took in only $622,371 in gross revenue.

Leading the way in revenue was BetMGM, in partnership with the MGM Grand Detroit, which took in $5.1m on handle of $22.8m, which was fourth in the state.

In second in both handle, at $28.2m, and revenue at $3.4m was DraftKings’ sportsbook with Bay Mills Indian Community. Penn National Gaming’s Barstool Sportsbook was close behind in both areas, as players staked $27.5m and won $3.3m.

In online gaming, BetMGM comfortably led the way in revenue with $11.1m, well ahead of DraftKings’ $6.9m and FanDuel’s $6.6m.

Operators will pay $4.3m in online gaming taxes to the state of Michigan, plus $111,696 in taxes for online sports betting for that ten-day period.

Commercial operators will pay a further $1.4m to the city of Detroit, while tribal operators will pay $428,615 to tribal governing bodies.

“Internet gaming operators are off to a good start in Michigan,” Richard S. Kalm, MGCB executive director, said. “The taxes and payments from online gaming will provide funding for K-12 students, the city of Detroit and Michigan tribal communities.”

The state will receive 70% of tax from commercial operators, with the remainder going to the city of Detroit. 

For tribal operators, the state will receive 70% of gaming and 90% of betting revenue, with 20% of gaming revenue going to the local tribal authority. The remaining 10% goes to the Michigan Strategic Fund, which has a mandate to promote economic development and create jobs.