January marked the fifth consecutive month in which Michigan’s sportsbooks were able to set a new record for state sports betting handle, surpassing $530m to kick off 2022, according to PlayMichigan, which tracks gaming developments in the state.
The Wolverine State’s sportsbooks were able to continue building on their 2021 performance thanks to the extended NFL regular season and the exciting playoff games which took place in both the NFL and college football during the month.
Alongside the strong start to the year for sports wagering, online casinos came close to setting a new record in revenue too, demonstrating the growth of the state’s gaming industry.
Matt Schoch, the lead analyst for PlayMichigan.com, stated: “Momentum in Michigan for online sports betting and casino games continues to grow. Spring is coming, which means a seasonal slowdown in sports betting. But the fall and winter have proven that Michiganders are increasingly comfortable with online gaming in its various forms.”
According to official data released by the Michigan Gaming Control Board, the state’s online sportsbooks accepted a record $496.8m in wagers in January, up 2.5% from December’s $484.6m.
When combined with the $36.6m declared by Detroit-area casinos in retail wagering, Michigan’s sportsbooks recorded a handle of $532.7m for the month, a 3.5% improvement on the previous record set at the end of last year of $514.6m.
From that handle, online sportsbooks won $34.7m in gross revenue, down slightly from the previous month’s $34.8m. When retail sportsbooks revenue of $1.2m is added, sportsbooks in total won $35.9m. After promotional credits, taxable revenue for both online and retail wagering hit $21.1m, yielding $2.1m in state taxes.
Sportsbooks were able to achieve a record-breaking month thanks to an additional week of NFL regular season games, an expanded playoff, college football’s national championship game, and consistent bettor interest in the NBA.
Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayMichigan.com, commented: “The extra week of regular season football was a boon for sportsbooks, giving them five full weekends of football in January. As the only state with five consecutive months of record wagering, no state has capitalized on this football season more than Michigan.”
Broken down per online operator, FanDuel led the way with $132.7m in wagers (December: $119.9m), generating a market-best $12.3m in gross revenue.
DraftKings was second with handle of $132.03m (December: $120.3m), producing a gross revenue of $5.9m. BetMGM followed with $110.9m in online wagers (December: $108.7m), yielding $10.9m in gross receipts.
Schoch added: “FanDuel, DraftKings, and BetMGM remain in a tight battle for market share. Each continues to pour significant investment into Michigan, showing that this is still one of the prized markets in the US.”
In terms of online casinos and poker, Michigan achieved $121.2m in revenue, just short of a record and down slightly on December’s $121.8m.
Revenue stayed consistent month-to-month at $3.9m per day over the month’s 31 days (December: $3.9m per day), generating $19.1m in state taxes and another $7.4m in local taxes and shares.
Leading all online casino and poker operators was BetMGM with a gross gaming revenue of $43.9m, yielding $10.9m in state and local taxes. DraftKings followed with $20.1m in gross receipts, producing $4.4m in state and local taxes.
Ramsey concluded: “As much as sports betting continues to grow, casino gambling remains the bedrock of the online gaming industry. With no competition imminent from neighboring states, online casinos in Michigan will continue to grow and drive millions in tax revenue for the state.”