In 2023, revenue in Michigan was 18.3% higher than the $1.98bn generated in 2022. It also surpassed the $1.40bn from the first year of legal betting in 2021. These figures include licensed commercial and tribal igaming operators.
Breaking it down, $1.90bn of total revenue came from igaming and $420.4m from gross sports betting receipts. Both of these figures set new annual records, despite the total annual sports betting handle remaining steady at $4.60bn.
After accounting for promotional deductions, adjusted gross receipts (AGR) from igaming and sports betting reached $1.96bn. This was an 18.8% increase from the previous year’s total.
Total revenue for 2023 was 18.3% higher than the $1.98bn generated in 2022. Of the AGR from igaming, $1.73bn came from igaming and $223.5m from adjusted gross sports betting receipts.
In terms of tax, operators paid a total tax of $369.8m, including $354.0m for igaming taxes and fees, and $15.8m from the sports betting sector. Detroit’s three casinos paid a total of $95.8m in igaming and sports betting tax, while tribal operators paid $43.1m to governing bodies.
Michigan achieved record-breaking monthly figures in December. Total gross online gambling revenue reached $181.4m, the highest monthly total to date. This was a 20.4% increase from December 2022.
The growth was driven by the igaming sector, which saw gross revenue reach a record $181.4m. Gross sports betting receipts also reached a new monthly high of $61.1m in December, with handle also hitting a record $583.0m.
After adjustments, the total online gambling AGR was $198.4m, up 29.8% year-on-year. Igaming AGR reached $163.3m, while adjusted gross sports betting receipts were $35.1m.
In terms of tax for December, monthly payments amounted to $36.7m, with $34.1m coming from igaming and $2.6m from sports betting. Detroit casinos paid $9.4m, and tribal operators paid $4.3m.
On the flip side, revenue from the three commercial casinos in Detroit’s land-based casino gaming sector decreased by 3.1% to $1.24bn in 2023. Declines were observed across table games and sports betting. Slots revenue, however, saw a marginal increase to $984.1m, while table games revenue was 12.7% lower at $238.7m, and retail sports betting qualified adjusted gross receipts (QAGR) fell by 25.7% to $14.0m.
In December, the total market revenue increased by 5.7% to $116.2m. Table and slots revenue climbed 2.9% to $111.4m, and sports betting QAGR skyrocketed by 200.0% to $4.8m.
The Michigan Gaming Control Board (MGCB) has taken action against illegal online gaming companies operating in the state. The MGCB issued cease-and-desist letters to PredictionStrike Inc, VGW LuckyLand, and Sweepstakes Limited for offering forms of online gaming without proper licenses. These operators were in violation of the Lawful Internet Gaming Act, Michigan Gaming Control and Revenue Act, and Michigan Penal Code. They have since taken steps to prevent Michigan residents from using their websites.
The MGCB emphasized the importance of gambling regulations and the negative impact of illegal gambling on Michigan residents and communities. They stated that illegal operators should not have access to Michigan citizens and should not evade taxes that regulated and legal gambling establishments are obliged to pay.
