Michigan's online gambling industry continued its growth momentum in August, with the latest data from the Michigan Gaming Control Board (MGCB) showing significant year-over-year growth. The total revenue from online gambling and sports betting reached $224 million (€202.3 million), a 27.7% increase from the same period last year. This growth was primarily driven by the iGaming sector, which recorded the third highest gambling total revenue (GGR) in history.
IGaming alone contributed $196.7 million (€177.6 million) to the overall revenue, up 2.8% from July and 29.2% from August 2023. After deducting promotional expenses, the adjusted total revenue (AGR) for iGaming was $176.9 million (€159.7 million), up 30.9% year-over-year. The iGaming sector also led in tax contributions, with $36.9 million (€33.3 million) of the total $37.8 million (€34.1 million) in online gaming and sports betting taxes coming from this area.
Sports Betting Maintains Strong Momentum
In addition to the iGaming sector, Michigan's online sports betting market also saw significant growth. Online sports betting handled $280.1 million in wagers, a 28.2% increase from the previous year. Sports betting total revenue was reported at $27.4 million, an 18.1% increase from August 2023. However, the adjusted AGR for sports betting saw a modest rise of 2.5% due to operators continuing to invest heavily in promotional activities.
FanDuel led the sports betting market, handling $101 million in wagers and generating $11.1 million in total revenue. Following closely was DraftKings, with $78.1 million in wagers and $7.6 million in total revenue, while BetMGM ranked third with a GGR of $4.6 million and $41.2 million in wagers.
BetMGM, FanDuel Dominate Market Share
BetMGM continued to lead Michigan's iGaming market through its partnership with MGM Grand Detroit. The operator reported total revenue of $52.5 million, with an average annual revenue of $47.2 million. FanDuel, in partnership with MotorCity Casino, followed closely with a GGR of $48.4 million and an average annual revenue of $43.5 million. DraftKings ranked third with a GGR of $36.6 million and an average annual revenue of $32.9 million. Notably, BetRivers and Caesars Palace set new monthly revenue records of $13 million and $12 million, respectively.
In the sports betting sector, FanDuel maintained its leading position, while BetMGM and DraftKings competed for second and third place. As operators strive to increase market share through strategic investments and promotions, competition in Michigan's online gambling market is intensifying.
Record-Breaking iGaming Milestones
Michigan's iGaming industry, along with Pennsylvania and New Jersey, broke the historic $6 billion revenue record, a milestone achieved in a relatively short period. So far this year, the state's iGaming revenue is up 24.8% from last year, demonstrating the market's significant growth potential. This ongoing upward trend indicates a bright future for Michigan's online gambling industry.
Modest Growth in Physical Casino Revenue
While the focus remains on the online sector, Detroit's commercial physical casinos also experienced growth. In August, total revenue from table games, slot machines, and retail sports betting reached $112.5 million, up 7.3% year-over-year. Table games and slot machines contributed $110.8 million, up 5.9% from last year, while retail sports betting revenue soared 427.7% to $1.7 million.
MGM maintained a market-leading position with a 48% market share, followed by MotorCity Casino at 28%, and Hollywood Casino at Greektown at 24%. These casinos collectively paid $17.3 million in gambling-related taxes to the city of Detroit, in addition to sports betting taxes.
Outlook
The continued growth of Michigan's online gambling market, coupled with the stable performance of physical casinos, positions the state as a significant player in the U.S. gambling industry. With online gambling and sports betting continuing to gain favor, Michigan is poised for further growth in the coming months.
