The state of Michigan reported $114.31 million in gross internet gaming and sports betting receipts in May, down 0.8% from April.
Horse Racing Could Bring $1.2B to the State
The gross gaming revenue generated by online gaming operators in May amounted to $94.85 million. Additionally, e-sports betting operators reported $19.46 million of total gross sports betting gains, thus accounting for a total handle of $237.6 million for the month.
Henry Williams, Michigan Gaming Control Board executive director, pointed out that state, city and tribal governments experienced an increase in revenue compared to the previous month. In May, adjusted gross receipts for internet casino gaming climbed by 0.2% on a monthly basis, Williams said.
However, the event-driven sports betting handle was down 4.9% in May. Currently, Michigan horse racing wagering is possible only through the state’s regulated track and advance deposit wagering. Last month, the Michigan Senate Agriculture Committee voted unanimously in favor of a four-bill package to legalize the horse racing industry in the state. According to estimations, this could bring $1.2 billion back to the Great Lakes State.
Online casinos brought some $18.1 million to the state coffers in May. In addition, online sports betting taxes stood at $615,153 during the month. Tax depends on adjusted gross receipts, which result from revenue minus bonuses. Adjusted gross receipts from online casinos reported an uptick of 0.3% to reach $89.1 million, while sports betting was down 8.3% to $9.9 million.
Aggregate internet gaming adjusted gross receipts stood at $369.4 million for the period from January 22 launch till May 31. Aggregate internet sports betting adjusted gross sports betting receipts reached $23.7 million.
Top Three Operators’ Performance
In May, a total of 13 operators had legal permission to operate one or both forms of online wagering. The BetMGM Sportsbook at MGM Grand Detroit was the leader in terms of online casinos with $36.1 million in revenue for the month. It was followed by FanDuel partner MotorCity Casino with $14.7 million. Bay Mills Indian Community and DraftKings completed the top three in terms of in iGaming revenue with $14.1 million.
While the state of Michigan continues to derive tax revenue from the online gambling industry, experts are warning about the underlying issue of problem gambling. Since the launch of online gambling in January till May, calls to the Michigan Problem Gambling Helpline, reached 563, while they amounted to 213 in 2020. Although Michigan is allocating a large budget to address the issue, time is needed to reveal the need for any changes.