The state of Michigan is hot on the heels of New Jersey in terms of profits from online gambling, the announcement of the two state’s latest gambling revenue results has revealed. Based on the trajectory the two states are following since the launch of online gambling in their respective jurisdiction, Michigan is very likely to surpass New Jersey and take the leading spot in the US-regulated market.
Bottled-Up Demand in Michigan’s Fairly New Online Gambling Market
The gambling revenue results were announced by the New Jersey Division of Gaming Enforcement and the Michigan Gaming Control Board but the data was compiled by OddsSeeker, a website for news from the regulated online gambling market in the United States.
Online gambling websites in New Jersey achieved profits amounting to $814,519,523 for the first half of 2022. Michigan followed closely with revenue of $757,024,184 for the same period. A notable factor is that online gambling has been legal in New Jersey since November 2013, while Michigan is relatively new to the game with its launch of the online gambling market in January 2021.
In New Jersey, the industry had plenty of time to develop and establish itself, while in Michigan things are still settling and being streamlined. At the same time, Michigan is enjoying good online gambling revenues as there is a lot of bottled-up demand that has been finally unleashed with Michigan residents being still hungry for this fresh and attractive leisure and entertainment opportunity.
It is interesting to note that when one considers the population of the two states the difference in revenue coming from gambling per resident is $12.58 in favor of New Jersey as profits per capita in Michigan were $75.31 and in New Jersey, they were $87.89.
A Closer Look into the Numbers
If we take a closer look, one number in the monthly revenues of the two US states in the period from January to June 2022 really stands out. For the month of March online casinos and sports betting websites in the state of New Jersey collected an astounding profit of $140,655,053. Michigan’s best result of $132,438,011, which was achieved in April, does not even come close. Looking at the numbers, it is also clear that there is a decline in revenue for the last two months, May and June, in both states. This is probably due to the raging global inflation crisis that bides upcoming recession, which is slowly bringing demand for gambling down. Vacation time and the quiet sportsbook calendar are also contributing to the decline. Things should pick up once the football season starts and profit levels should go up as people get back to their usual 9-to-5 routines.