Michigan iGaming Industry Continues to Reach New Heights
The online gaming market in Michigan has reached a new record high in revenues with $102.4 million in earnings.
Online gambling has been in full swing since January in Michigan and so far, the state has seen great results. Month after month, totals continue to increase, and it seems that players just can’t get enough of the service options. For September, the state saw just over $102 million in earnings, the highest monthly total yet. The previous high was set in August and September beat that amount by over 5%. Over $18 million in taxes and fees were paid with sportsbooks earning over $23 million for the month on top of the slot and table game earnings.
For online casino operators, it was BetMGM that earned the most. Having partnered with MGM Grand Detroit, the operator generated over $36 million for the month. The company crushed the field with its closest competitor earning more than 50% less than BetMGM.
In second and third place was DraftKings and FanDuel, both earning just under $14 million. DraftKings is partnered with the Bay Mills Indian Community, and they generated $13.9 million while FanDuel operates with MotorCity Casino Hotel and generated just over $13.8 million.
Coming in at 4th and 5th place are BetRivers (Little River Band of Ottawa Indians) and the Golden Nugget (Keweenaw Bay Indian Community). BetRivers generated slightly over $6 million and Golden Nugget earned just over $4.1 million.
WynnBET, PokerStars Casino, Barstool Casino, Four Winds Casino, Caesars Casino, PlayGunLake.com, TwinSpires, PointsBet, and FireKeepers Casino all fell at the bottom of the earnings list. Every operator was able to earn over $1 million but PointsBet fell way short of that mark and earned only $245,298.
Taxes that operators pay on their earnings are based on an adjusted pay scale and gross receipts. Providers pay from 20 to 28 percent. For commercial operators, 70% of the earnings go to the state and the rest is paid to Detroit. Taxes generated from Native American operations go to the tribal communities. Sports betting is taxed at 8.4% and uses the same 70 and 30 percent split between the state and Detroit. Interestingly enough, the sports betting revenues from mobile gaming by tribal operators are taxed and the money goes to the Lansing government.
BetMGM is a Major Player
While there are tons of recognizable brands offering online casino services in Michigan, BetMGM definitely stands out. The operator has been able to capture a huge market share and is showing no sign of slowing down. For the year, BetMGM has generated over 37% of the revenue from iGaming.
As an extension of MGM Grand Detroit in several sectors, the brand has earned over $260 million in revenues. Tax revenue from the company along is over $50 million. FanDuel is the second-highest casino operator for online gaming, paying over $119 million in tax revenues.
Across the US, BetMGM is a prevalent brand. They offer services in a wide range of states, with online casino and/or sports betting options. BetMGM is also involved in online poker services, but options are more limited.
BetMGM has a solid campaign when it comes to marketing its services as well as providing quality options for players in all sectors. The brand is extremely popular and a go-to for players due to the app and site quality along with services offered. Promotions also play a big role and help BetMGM to stand above the crowd.
The company’s reputation proceeds them so when they start to offer services in a new state, players take notice. It is not surprising to watch as BetMGM continues to be the top provider in each state it starts to offer services in.