Published in Economic Development

Tax revenue from online casinos exceeds $220M as industry maintains growth

BY Monday, November 22, 2021 03:54pm

Revenue generated by online casino gaming and sports betting has reached new record monthly highs in the state, according to data released by the Michigan Gaming Control Board.

For the month of October, online casino gaming through both commercial and tribal operators grossed $109.7 million in revenue, which was the third consecutive month setting a revenue record. Online sports betting, which saw consumers place a record-breaking number of wagers during the month, grossed $24.3 million in revenue.

Combined, online casino gaming and sports wagering contributed $20.8 million in taxes and payments to the state of Michigan. 

Sports betting bonanza

Online sports betting has reached an all-time high since opening for business in late January with both college and professional football and basketball now in season simultaneously.

Online sports betting operators handled $463.3 million in bets, which blew past the previous record of $359.5 million that was set in March. This was also a 30.8-percent jump in betting from September 2021.

With retail sports books handling $34.2 million in wagers, the state saw $497 million in sports bets.

Online sportsbooks also continue to prove generous with free play credits. While online sportsbooks grossed $24.3 million in revenue, the adjusted sum — which deducts free plays and promotions — rang in at $4.7 million. Online sports betting contributed $553,907 in taxes and payments to the state.

The “Michigan-Michigan State (football game), five full weekends of the NFL and college football, the opening of the NBA season, and baseball’s postseason all coalesced in October to create an unusually robust sports calendar,” said Matt Schoch, lead analyst for PlayMichigan.com, which covers online gambling in the state. 

“Michigan bettors are increasingly comfortable with online sports betting. And with a game like Michigan-Michigan State that carries intense local interest, sportsbooks were presented a rare opportunity to expand their customer bases. The events of this month will continue to pay dividends even after the schedule slows.”

Online casino play keeps humming

Meanwhile, online casino play continues to build on its momentum, grossing a record $109.7 million in revenue for the month, which was up 7.1 percent from September. Adjusted for free plays and promotions, online gaming generated $98.9 million in revenue.

With its $20.3 million in payments to the state in October, online casino gaming has now contributed $220.8 million in both state and local taxes since opening for business at the beginning of the year.

“Sports betting ebbs and flows depending on what sports are in season, but the growth in online gaming continues month after month,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayMichigan. “Online gambling has proven to be a remarkably consistent and valuable revenue generator for the state, accomplishing one of the state’s primary goals when it was legalized and regulated.”

Read 1574 times Last modified on Monday, 22 November 2021 17:40