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Michigan’s sports revenue hike can’t stop another online gambling fall

News

Internet gaming operators in Michigan reported a third straight month of decline in June despite a leap in sports betting revenue.

Figures released by Michigan Gaming Control Board (MGCB) show gross internet gaming and sports betting receipts of $114.2m in June, down slightly on the $114.3m in May.

Internet gaming gross receipts fell by 6.0% on a month-by-month basis from $94.9m in May to $89.2m in June.

MGCB added that during June, Michigan’s largest internet casino gaming operator, MGM Grand Detroit, took its first deduction for free play since launch in January. The $17.5m free play deduction contributed to a 25.7% decline in internet gaming adjusted gross receipts in June compared with May results. Michigan law limits the deduction for internet casino gaming free play to 10% or less of gross receipts in the first three years after launch.

Gross sports betting receipts grew by 28.2% to $25.0m compared to the previous month. Sportsbooks generated total handle of $235.1m for the month, down on the $237.6m in May and the lowest full monthly total since the market launched in January.

“Michigan’s gross internet casino gaming and online sports betting wagering receipts in June roughly matched May,” said Henry Williams, MGCB executive director.

“Summer is here, and Michigan is reopening after the pandemic restrictions so there are many entertainment opportunities. The slight tenth of a percent decline from May to June shows internet gaming and online sports betting continues to draw Michigan residents’ and visitors’ interest.”

Michigan’s 13 online operators delivered approximately $14.6m in taxes and payments to the State of Michigan including internet gaming taxes and payments of $13.7m and internet sports betting taxes and payments of $927,575.

From the 22 January launch through 30 June, aggregate internet gaming adjusted gross receipts totalled $435.6m and aggregate internet sports betting adjusted gross sports betting receipts were $40.5m.

During June, FireKeepers Casino conducted a soft launch with limited participation during before the MGCB approved a full launch for Michigan’s 14th operator on 12 July.

Last week, MGCB reported a slight decline in commercial casino revenue, from its three Detroit casinos, in June, despite capacity limits on casinos being lifted on June 22. The casinos made an aggregate revenue of $108.1m, a decline of 1.7% compared to May.