Michigan’s online gaming market has recorded strong annual growth in revenue even though the seasonality of sports meant that betting revenue declined for a second straight month.
Per the Michigan Gaming Control Board’s latest monthly update, Michigan’s online gaming market generated $185.2m in revenue during May, marking growth of 15.5% on an annual basis.
However, it marks a notable 5.5% decline from April, when revenue reached $195.7m.
This revenue was broken down into $150.6m from online casino and $36.3m from sports betting, as the sporting season winds down in many quarters.
Online casino of $150.6m marks 18.2% growth year-over-year, as the igaming market that opened back in 2021 continues to expand. However, this figure is slightly down compared to April, when revenue was recorded at $159.4m.
On an adjusted revenue basis, which deducts certain costs which could include promotional giveaways, online casino operators generated $135.5m, down 5.5% YoY, but up 18.1% from May 2022.
Meanwhile, on the sports betting side of the industry, operators reported handle amounting to $288.3m, down 10.7% from April as the sporting season winds down in most sports.
Sports betting handle also decreased annually, with a 13.5% drop from the $333.4m wagered in May 2022.
Operators enjoyed a hold rate of 12.6%, which is a lot higher than the average rate usually posted. This pushed revenue up to $36.7m, though this was still a decline on both a monthly and annual basis.
Revenue from sports betting declined 10.2% from April’s figures and 2% YoY as the Great Lake State’s sportsbook market seems to have reached stagnation.
Operators paid a combined $29.4m in taxes throughout May, broken into $28m from online casino and $1.4m in sports betting duties.
