Michigan iGaming and sports betting revenue soars in 2023 – The Jerusalem Post

The Great Lake State Reports Record-Breaking $2.30bn in Online Gambling Revenue

Good news for the Great Lake State as Michigan's booming gaming industry witnessed a remarkable surge in revenue in 2023, marking substantial growth compared to previous years. According to reports, the total revenue for 2023 soared by 18.3%, reaching an impressive $2.34 billion. This figure significantly surpassed the $1.98 billion generated in 2022 and far exceeded the $1.40 billion from the inaugural year of legal betting in 2021.

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This is an especially noteworthy figure, particularly if one considers the fact that Michigans online betting and gaming market was only launched in January 2021. The fact that in a mere three years, this states market has gone from strength to strength indeed speaks volumes and reaffirms how the online gambling sector is thriving!

Breaking down the numbers further, it's evident that both iGaming and sports betting played pivotal roles in stimulating this impressive growth. iGaming revenue alone amounted to $1.90 billion, while gross sports betting receipts reached $420.4 million. These figures set new annual records and demonstrated substantial year-on-year increases despite the total annual sports betting handle remaining fairly steady at $4.60 billion.

After taking note of promotional deductions, the adjusted gross receipts (AGR) from iGaming and sports betting combined amounted to $1.96 billion, reflecting a spectacular 18.8% increase from the previous year's total.

The iGaming sector emerged as a main contributor to Michigan's gaming revenue for 2023. With a total revenue increase of 18.3% compared to 2022, iGaming generated a staggering $1.73 billion. Adjusted gross sports betting receipts stood at $223.5 million, further highlighting the sector's robust performance.

With regards to tax revenue, gambling operators paid a total of $369.8 million, including $354.0 million in iGaming taxes and fees, along with $15.8 million from the sports betting sector. Detroit's three major casinos contributed $95.8 million in total iGaming and sports betting tax, while tribal operators paid $43.1 million to governing bodies.

Michigan ended 2023 on a high, with December witnessing all-time record figures in gaming revenue. Total gross online gambling revenue in December 2023 peaked at $181.4 million, marking the highest monthly total to date and surpassing both December 2022 and November 2023 figures by a whopping 20.4%.

This surge in revenue was primarily driven by the iGaming sector, which saw gross revenue reaching a record $181.4 million. Additionally, gross sports betting receipts hit a new monthly high of $61.1 million, with the handle also reaching a record $583.0 million.

After adjustments, total online gambling AGR amounted to $198.4 million, reflecting a significant 29.8% year-on-year increase. iGaming AGR contributed $163.3 million, while adjusted gross sports betting accounted for $35.1 million.

Tax revenue payments for December amounted to $36.7 million, with $34.1 million coming from iGaming and $2.6 million from sports betting. Detroit casinos and tribal operators contributed $9.4 million and $4.3 million, respectively.

While online gambling flourished, the story was quite different for land-based casinos in the Great Lake State. With gambling revenue from Detroit's three commercial casinos experienced a 3.1% year-on-year decline, reaching $1.24 billion.

The declines were observed across a range of sectors, including table games and sports betting. Table games revenue decreased by 12.7%, and retail sports betting qualified adjusted gross receipts (QAGR) fell by 25.7%. Slot revenue, however, managed to remain relatively stable.

In December, total market revenue saw a modest increase of 5.7% to $116.2 million, with table and slots revenue climbing by 2.9% and sports betting QAGR skyrocketing by 200.0%.

While the progress made by the industry over the course of the last year was certainly impressive, it was not without its challenges. Amidst the industry's phenomenal growth, the Michigan Gaming Control Board (MGCB) also took action against illegal gaming entities whose operations were causing disruption and harm within the sector. Cease-and-desist letters were issued to three online gaming companies operating without licenses in the Great Lake state.

The MGCB used this opportunity to highlight the importance of regulatory compliance, focusing on the risks associated with unlicensed gambling operations. By enforcing regulations, the board demonstrated the states commitment to protecting local consumers and ensuring the gaming environment in Michigan was a safe and fair one for all stakeholders.

Henry Williams, the MGCBs executive director, reiterated this message further by saying that businesses that made it their mission to circumvent the law via unregulated sites were not just causing harm to vulnerable players but were siphoning funds from the local communities by avoiding their taxes.

In short, Michigan's online gambling industry has witnessed significant growth in 2023, much of which has been driven by robust performance in iGaming and sports betting. However, as is the case in gambling markets across the globe, this type of growth comes with certain challenges. The Great Lake State is essentially in its infancy, and to take full advantage of the benefits associated with a legal gambling market, it is clear that they will have to tackle the challenge of cracking down on illegal operators seriously in order to keep their consumers safe and ensure that tax revenue is properly collected and invested back into the local economy.

This article was written in cooperation with FreeSpinsTracker.com

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Michigan iGaming and sports betting revenue soars in 2023 - The Jerusalem Post