Michigan Online Casino Sets New Sales Record
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The March frenzy fueled more than $475 million in online and retail bets, the largest in the state across the month without NFL games. Meanwhile, according to PlayMichigan, which tracks game development in the state, online casino revenue has soared past $130 million for the first time, new evidence that the sector is still growing fast.
Paul Costanzo, chief analyst at PlayMichigan.com , said, "The popularity of the NCAA Tournament makes March the month, not the most important football of the year for sports books." "The March frenzy didn't generate enough momentum to push sports books to new records, but it's more evidence that betting companies remain highly engaged during the major games."
Michigan's online sportsbook attracted $451.6 million in online bets in March, up 13.4% from the $398.4 million in bets accepted in February, according to official data released Monday by the Michigan Gaming Control Board. With $26.4 million in retail bets from Detroit-area casinos announced last week, Michigan's online and retail sportsbooks combined bets of $478 million over the month. This represents a 12.8% increase from $423.8 million in February. The highest record in a month was set in January with $532.7 million in bets.
Online Sportsbook Earns Total Return Of $30.5M From March's Betting. That's up 35.4% from $22.5 million in February but down 5.6% from $32.3 million in March 2021. When retail revenue of $2 million combined, Michigan's Sportsbook earned $32.4 million in the month. After the promotional credits, retail and online sportsbooks generated $16.6 million in tax revenue, resulting in a tax of $967,314.
Year-over-year growth in the industry was terrible, even though betting companies won more than a year ago. March bets increased 24.6% from $383.7 million in March 2021. Online sportsbooks were the best fit, up 25.6% from $359.5 million in March 2021.
Eric Ramsey, an analyst with PlayUSA Network, which includes PlayMichigan, said, "The seasonal decline in sports betting really starts after the first full weekend in March, and the slowdown will be extended until football starts in September." "The industry will be in a fantastic position heading into the fall if, with the NBA and NHL playoffs, major championships in baseball and golf taking center stage over the next few months, the sportsbook can continue to grow more than 25 percent year-over-year."
FanDuel led the online market with $140.1 million, up from $122.4 million in February. FanDuel, combined with retail sportsbooks, earned $14 million in total revenue from its March bets. BetMGM came in second with $181 million in online betting, up from $86.7 million in February. BetMGM, combined with retail sportsbooks, earned $9.8 million in total revenue.
DraftKings followed with $102.9 million in online bets, down from $94.7 million in February. DraftKings grossed $3.3 million from online and retail bets.
"Market share competition has solidified, and it's going to take something important to pull the top players off the perch," Ramsey said. "In particular, FanDuel's dominance appears to have been strengthened. But the second-place race remains exciting due to BetMGM's continued growth."
Online casinos and poker
Michigan's online casinos and poker rooms continue to surge, with March sales of $131.7 million, breaking the February record of $122.8 million. Online casino sales hit a new high for the third time in four months.
Online casinos generated $4.2 million in revenue per day in March, down slightly from $4.4 million per day generated by online casinos in February. Revenue in March calculated $33.1 million in state taxes and fees, while online casinos generated $368.9 million in taxes and fees since launching in 2021.
"Online casinos should continue to generate huge profits over the summer because they are not affected by seasonal ebbs and flows such as sports betting," Costanzo said. "Michigan has been so successful in generating revenue from online casino games that it is surprising that more states have not followed suit in legalizing and regulating it."
Other highlights for February:
- BetMGM led all online casino and poker operators with $47.9 million in total gaming revenue, resulting in $12.6 million in state and local taxes.
- Panduel came in second with a total income of $22.5 million, bringing in $5.9 million in state and local taxes.
