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Michigan ends 2021 on a betting and gaming high

Michigan’s sportsbooks and online casinos ended 2021 in record breaking mood, with the latter surpassing $120m in revenue and sports betting entities generating more than $500m in wagers.

The state’s igaming performance sees Michigan become just the third to break the $1bn barrier in annual revenue, and the first to do so within its maiden year.

December’s $121.8m in revenue exceeded the previous high of $109.7m from October, with the win yielding $31.2m in state and local taxes.

Furthermore, the 31 days of the last month of 2021 saw revenue grow to $3.9m per day, with BetMGM topping the market with $46m in GGR.

For the year, Michigan’s online casinos and poker rooms generated $1.1bn in gross revenue, as well as $279.3m in state taxes.

“It took time for online sports betting to truly ramp up, but online casinos have flourished from the very beginning,” stated Eric Ramsey, an analyst for the PlayUSA

“Few saw Michigan hitting $1bn in revenue over the first year, especially considering that no state had ever reached that level before. To do it in year one has been impressive, creating a significant stream of tax revenue from the state along the way.”

Online sportsbooks drew $484.6m through December, topping the past record of $473.8m that was recorded just one month earlier.

Combined with $30.1m in retail wagering at Detroit-area casinos that was announced last week, Michigan sportsbooks hit $514.6m in wagering for the month, up 2.8 per cent from its past high of $500.5m in November.

Online operators won $34.8m in gross revenue in December, which is down 35.8 per cent from the record $54.1m in November but still comes in as the second most in state history.

When accounting for the addition of $1.2m in retail revenue, Michigan’s sportsbooks won $35.9m for the month, down 38.9 per cent from $58.8m in November. Taxable revenue for both online and retail wagering reached $12m, yielding $1.2m in taxes.

For the year, Michigan’s sportsbooks produced $3.97bn in online and retail wagers, $319.5m in gross revenue, and $13.6m in state taxes.

In December, DraftKings edged FanDuel with $120.3m in online wagers, which yielded $7.3m in gross revenue. FanDuel followed with $119.9m in bets and a market-best $9.6m on revenue.

“Sports betting still has plenty of room for growth,” added Ramsey. “It’s important to remember that Michigan’s bettors are still relatively new to mobile sportsbooks and online-specific forms of betting such as in-game wagering. 

“Meanwhile, sportsbooks continue to expand their customer bases. As familiarity grows, so will the market.”

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