Gross internet gaming and sports betting receipts for 2024 surpassed the previous record, set in 2023, by 23.8%. This is also more than double the $1.90 billion in the first year of legal online gambling in Michigan in 2021.
Adjusted revenue, which accounts for promotional spending, amounted to $2.4 billion, up 22.3% year-on-year. Figures from the Michigan Gaming Control Board (MGCB), published on Tuesday (21 January), cover commercial and tribal operators.
Igaming revenue tops $2.4 billion
Starting with igaming, revenue in this segment of the market topped $2.4 billion in 2024. This beats the previous year by 26.3% and is a new record for the state. Adjusted gross receipts for igaming also reached an all-time high of $2.2 billion, an increase of 27.2%.
BetMGM and MGM Grand Detroit claimed top spot in the market with $640.1 million in gross receipts and $576.9 million in adjusted receipts.
FanDuel and MotorCity Casino were not far behind, posting gross receipts of $614.6 million. The partnership also heralded $552.8 million worth of adjusted receipts. DraftKings and the Bay Mills Indian Community took third with gross receipts of $454.7 million and adjusted receipts of $409.6 million.
Record year for sports betting
Turning now to sports betting and, like igaming, revenue reached a new high. For the 2024 calendar year, gross receipts from online sports betting topped $460.5 million, a 9.5% rise.
Adjusted gross receipts for this segment, however, were 13.0% lower at $194.4 million.
Handle-wise, players spent $5.3 billion betting on sports online, an increase of 15.2%. Hold in Michigan for 2024 stood at 8.69% based on gross receipts.
In terms of operators, there is seemingly no stopping FanDuel and MotorCity Casino. For the full year, gross receipts topped $202.4 million off a $2.0 billion handle for a 10.36% hold.
DraftKings and the Bay Mills Indian Community were the closest challengers, posting $125.5 million in gross receipts off a $1.5 billion handle. This resulted in an annual hold of 8.33%.
BetMGM and MGM Grand Detroit placed third with $65.8 million in revenue off $757.0 million handle for an 8.69% hold. However, it is worth noting that this partnership generated an adjusted gross receipts loss of $14.3 million.
Other stand-out performers include ESPN Bet and Hollywood Greektown Casino. Here, gross receipts totalled $20.2 million from $322.4 million in bets, leaving a 6.27% hold. Fanatics, partnered with the Lac Vieux Desert Band of Lake Superior Chippewa Indians, took $19.6 million in revenue from $236.1 million in handle for an 8.30% hold.
As for tax, operators paid $466.1 million in taxes and payments to the state. This includes $451.4 million for igaming and $14.7 million to cover sports betting. Tribal operators also made $55.3 million in payments to governing bodies.
Detroit casino revenue edges up
Looking to land-based activities, Detroit’s three commercial casinos generated $1.29 billion in revenue, up 1.6%.
Slots revenue hit $1.03 billion, up 4.9%, while table games revenue increased 5.2% to $251.0 million. Retail sports betting qualified adjusted gross receipts (QAGR), however, fell 30.7% to $9.7 million.
MGM led the way with $603.7 million in total land-based revenue, up 7.0%. MotorCity saw revenue rise 3.3% to $385.9 million, while revenue at Hollywood Casino at Greektown edged up 2.7% to $292.9 million.
The trio paid the state $103.9 million in wagering tax for slot and table games and $372,729 for retail sports betting.
Record end to 2024
The MGCB also released data for December, a month that produced record results. In total, online gambling revenue for the month was $264.2 million, up 9.0% year-on-year but 7.1% lower than November.
As for adjusted gross receipts, this hit $219.9 million, a rise of 10.8% from 2023 but 8.5% less than November’s total.
The month-on-month declines came despite igaming gross receipts reaching a record $244.0 million. Adjusted gross receipts for this segment amounted to $219.6 million.
BetMGM and MGM retained the lead in the market with $65.1 million in gross receipts. This is the highest monthly total reported by the partnership.
In terms of sports betting, gross receipts reached $20.2 million, down 66.9% from last year and 65.4% behind November. This reflects a wider industry trend whereby customer-friendly sports results have impacted operators across the US.
Adjusted gross receipts for the segment were just $267,881 while handle hit $597.7 million. This meant a monthly hold, based on gross receipts, of 3.38%.
FanDuel and MotorCity Casino were the market leaders with $7.2 million in gross receipts off a $235.5 million handle. This resulted in an 8.58% hold.
As for Detroit’s casinos, revenue for December topped $109.6 million. This falls 5.7% short of 2023 bid edges 1.11% ahead of November.
Land-based slots revenue was $109.3 million and retail sports betting QAGR $276,509.
Original article: https://igamingbusiness.com/finance/michigan-online-gambling-record-2024/
