Falling Revenues In Online Casinos For Third Month Running In Michigan

With summer in full swing and more people spending time outside, it has taken its toll on Michigan’s online casino platforms. Since February this year, the revenue is at its lowest, and it is the third straight month of decline. However, sports betting revenue sees a steady incline.

Online casino and poker

Throughout June, gross receipts are down 5.9%, from $94.9 million to $89.2 million. With bringing in $3 million a day, decreasing from $3.1 million a day in May. However, the biggest blow came from taxes, with $13.7 million in state taxes and $5 million in local taxes.

This decline didn’t stop BetMGM/MGM Grand Detroit from dominating the online casino and poker market further, with gross gaming revenue hitting $33.8 million. 

Jessica Welman, the analyst for Play USA Network, spoke on the matter, stating it’s not a surprise to see revenue fall during the summer months. This is because people spend more time outdoors. In general, the online gambling industry is relatively consistent. In the fall, growth will return. In the meantime, online casino gaming will still be the most dependable source of revenue for operators and the state that Michigan’s gaming industry can provide.

Sports betting

Despite the drop in this online casino revenue, June produced an increased betting volume and revenue for Michigan’s sports betting. The gross gaming revenue via online sportsbooks rose 28.2% from $19.5 million in May to $24.9 million in June. Further, June’s online sports betting hold of 10.6 for operators being their best month ever in Michigan. Michigan’s online and retail sportsbooks gained $259.4 million in bets, a 0.7% rise from May’s $257.7 million in bets.

An analyst from PlayMichigan, Matt Schoch, explained they have been waiting for a rise in taxable revenue, and they finally got it in June. Schoch hopes this will continue to fall as the revenue from sports betting will make a leap forward. 

FanDuel shone in the online market, with a $77.3 million handle up from May’s $71.2 million. This resulted in a market best of $10.3 million in gross sports betting revenue, up from $9.3 million. Schoch stated, “FanDuel really opened up a significant market share lead, which will be difficult for any rival to overcome.” 

Despite this increase, it has still maintained a relatively low month, with trends showing April, May, and June as three of the slowest months. This is due to seasons slowing down towards summer. But nobody in the US has experienced a steeper decline from the peak in March. June’s handle is 32.4% off March’s record-breaking figure of $383.7 million. Iowa was the second-lowest, with a drop of 31.1%.

Michigan’s online sportsbooks brought in $235.1 million in wagers in June, down 1% from the $237.6 million accepted in May, via Michigan Gaming Control Boards official data.

Welman, the analyst for Play USA Network, later explained: Michigan’s sportsbooks snowballed from January through March that the decrease might feel more dramatic than the reality. Sportsbooks will begin to pick up, especially with the football season approaching. Until then, sportsbooks will rely on other major events like the Olympics and the NBA finals to increase revenue.