Michigan’s Online Casinos Set New Records Last Month

Michigan State Seal Background With Online Casino Gambling

March Madness is living up to its name and bettors in Michigan have plenty to cheer about. Michigan State was eliminated, but the Wolverines are still alive in both the men’s and women’s tournaments. The luck does not end there, either. Recent figures from the Michigan Gaming Control Board (MGCB) show that February was a record-breaking month for the state.

According to the MGCB, Michigan’s online casinos set new revenue records in multiple categories. Michigan’s sportsbooks also hit it big last month. Numbers from the MGCB show that the total betting handle for online sportsbooks nearly reached $400 million.

The success of in-state gaming operators also translated into good news for Michigan. Casinos in the state paid over $20 million in state tax. They also paid north of $8 million in local taxes. All things considered, the Michigan gaming industry is leaps and bounds ahead of where it was a year ago.

February Revenues Break Michigan State Records

Michigan legalized online casinos at the end of 2019. Since then, the online gaming industry has taken off. Last December, online casinos set a record for monthly revenue at $121.8 million. That record would not stand for long, as it was broken last month.

According to the MGCB, Michigan’s online casinos generated $122.8 million in total revenue in February. The record-breaking month also came with a new high in revenue per day. In December and January, Michigan’s online casinos averaged $3.9 million in revenue per day. Last month, they generated an average revenue of $4.4 million per day.

Leading the way in online casino revenue were BetMGM, DraftKings, and FanDuel. BetMGM once again earned the most of any online casino in the state. In total, it earned $46.9 million last month. DraftKings was a distant second at $20.1 million and FanDuel pulled in $19.5 million.

Michigan’s Sportsbooks also Performed Well

The online betting boom also extended to Michigan’s sportsbooks. Last month, sportsbooks in Michigan generated a total sports betting handle of $423.8 million. Of the total handle, $398.3 million came from online sports betting operations. The remained amount was generated by retail sportsbooks in Detroit.

Sportsbooks across the US benefitted from an uptick in betting to start 2022. The NFL Playoffs are also a major source of betting revenue. The Super Bowl in February generated one of the largest betting handles in history. Michigan sportsbooks were able to cash in. They generated $21.6 million in revenue last month.

Online Betting Generates Millions in Tax Revenue

The success of Michigan’s online gaming operators was good news for the state’s coffers as well. Online casinos have to pay both state and local taxes. In February, online casinos paid a total of $21.6 million in state taxes. They also paid over $8.3 million in local taxes.

Casinos in Detroit are taxed at the rate of 8.1% on their total adjusted revenue. Last month, Detroit’s three retail casinos earned a total of $95.5 million in gross revenue. As a result, the city collected north of $7.7 million in taxes.

Michigan’s online sportsbooks also generated plenty of taxable income last month. Only sports betting operators paid over $360 thousand in state taxes last month. They also paid more than $220 thousand in local taxes as well.

Conclusion

Michigan’s online gaming industry is off to a good start so far in 2022. The MGCB reported that many state records were broken last month. Online casinos set new marks for the highest monthly revenue and highest daily average. Michigan’s online sportsbooks on the other hand generated a nearly $400 million sports betting handle.

The successful start of the year should be able to continue this month as well. Bettors will not be able to wager on the NFL season, but they can bet on March Madness. Both the Men’s and Women’s Wolverine teams have made it to the Sweet 16 round of the NCAA tournament. The return of the MLB and the start of the USFL next month should also provide future wagering opportunities.

A record-setting February also translated into good news for state and local governments. In total, online casinos paid nearly $30 million in state and local taxes last month. Online sportsbooks kicked in another $581 thousand as well.