February was the first full month of legal sports wagering in Michigan. Undoubtedly, the activity proved to be highly popular based on results released by the Michigan regulator.
Sports Betting Popularity Skyrockets in Michigan
After the first full month of legal sports betting action, residents in Michigan proved that the activity is highly popular. The state launched legal sports wagering on January 22. Consequently, in February, according to recent numbers released by the Michigan regulator, the popularity of sports betting skyrocketed.
Numbers, released by the Michigan Gaming Control Board (MGCB) on Tuesday revealed that internet sports betting operators reported a total handle of $301.9 million for February. Furthermore, the sports betting popularity was complemented by Super Bowl LV, which was played at the beginning of February.
Operators Paid More Than $14M in Taxes and Payments
In February, internet gaming and sports betting operators reported $89.2 million in gross receipts. Furthermore, internet gaming gross receipts were some $79.7 million. On the other hand, internet sports betting operators received $9.5 million in total gross sports betting receipts.
The $301.9 million in total handle translates to approximately $14.1 million in taxes, and payments to Michigan in February. Further breakdown of that number shows that internet gaming taxes boosted the state’s coffers by $14 million. On the other hand, internet sports betting taxes contributed $142,240 in taxes.
Collected Taxes to Help Education and Economic Development
In a statement, Richard S. Kalm, executive director of the MGCB said that despite the snowy and cold February, residents and visitors of Michigan showed strong interest in internet gaming and sports wagering. Furthermore, he acknowledged that internet gaming taxes in February have tripled. However, according to Kalm, this is not unexpected, considering that this is the first full month of gaming in the state.
“Michigan residents and visitors continued to show strong interest in internet gaming and sports betting during a snowy and cold February.”Richard S. Kalm, executive director, MGCB
In conclusion, he acknowledged that the collected taxes will help to fund the City of Detroit, tribal communities, K-12 education as well as economic development.
The MGCB announcement revealed that the three casinos in Detroit reported taxes and municipal service fees of nearly $4.4 million in February. From that total, internet gaming taxes and fees were $4.3 million, while sports wagering taxes and fees reached $90.301.