As online casino revenue remained high in May despite retail reopenings

Michigan's sports betting volume down for the second consecutive month

BetMGM/MGM Grand Detroit led with $36.1 million in gross receipts, yielding $10.6 million in state and local taxes in May.
2021-06-16
Reading time 1:53 min
Michigan sportsbooks took in $237.6 million in online wagers through May, down 4.9% from $249.9 million over the 30 days of April. Combined with $20.2 million in retail handle, Michigan's online and retail sportsbooks took in $257.7 million in bets, down 6% from $274.2 million in bets in April.

Michigan's sports betting volume decreased for the second consecutive month in May, as online casinos remained high, close to the state's first $100 million revenue month.

Michigan sportsbooks took in $237.6 million in online wagers through May, down 4.9% from $249.9 million over the 30 days of April. Combined with $20.2 million in retail handle, Michigan's online and retail sportsbooks took in $257.7 million in bets. That total is down 6.0% from $274.2 million in bets in April, according to official data released Tuesday, 

Gross operator revenue from online betting fell 4.5% to $19.5 million in May from $20.4 million in April. That produced $9.9 million in taxable revenue, down from $10.9 million, yielding $993,784 in state taxes, reported PlayMichigan.com

"Online casinos don't face the same dramatic seasonal variances as sports betting does, so they act as a steadying force for the industry. On the other hand, sportsbooks have been hit by the seasonality of sports betting and struggling local teams. It appears they will have to wait until the end of summer before substantial growth can be expected again," explained Jessica Welman, analyst for PlayMichigan.com.

With its 28.5% drop in wagering, Michigan's 28.5% decline in April handle represented the steepest month-over-month decline among major U.S. markets. And May's results so far lag behind other states that have reported April data, including Indiana (up 7.6%) and Iowa (down 2.9%).

Michigan's decline has been more pronounced because as the initial enthusiasm that came from the launch of online betting began to settle, the sports schedule also waned.

FanDuel/MotorCity Casino led all online sportsbooks with $71.2 million in wagering, down from $74.2 million in April.

In May, revenue for Michigan's online casinos and poker rooms hit $94.9 million. May's win breaks down to $3.1 million per day, down slightly from $3.2 million per day over April.

The win produced adjusted gross receipts of $89.1 million, up from $88.9 million in April. That total yielded $18.1 million in state taxes and $7.1 million in local taxes. Since January, online casinos and poker have generated $393.9 million in revenue and $99.7 million in state and local taxes.

BetMGM/MGM Grand Detroit led with $36.1 million in gross receipts, yielding $10.6 million in state and local taxes.

Welman noted: "Online casinos have become a powerhouse of revenue generation. Revenue has remained high, even as retail casinos around Detroit have become more accessible. Looking ahead, the popularity of these games should remain, and likely expand, over the next few months, even as retail casinos' operations continue to steady."

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