In the first half of 2023, the Great Lakes State has been setting a strong pace for online casinos and sports betting revenues. The combined revenues from iGaming and sports betting showed an increase of 24% in June 2023, compared to the same month in the previous year.
An Unprecedented Rise in Online Casinos and Sports Betting
Michigan’s online casinos and sportsbooks have generated more than $1.1 billion in Gross Gaming Revenue (GGR) through the first six months of 2023. These figures suggest that the torrid pace could continue through the end of the year. June’s total numbers in Michigan came in at $169.3 million, bringing the first half of the year revenue to $1.13 billion, from profits of games such as Slots and Baccarat. This is a significant increase from the roughly $757 million total in the same six months of 2022.
The primary driver for the 2023 numbers so far is iGaming, or online wagering. iGaming revenue accounted for $151 million in June, marking the fourth consecutive month with revenue breaking the $150 million mark.
The Mixed Bag of Sports Betting
While iGaming has been thriving, sports betting has shown mixed results. Gross sports betting receipts totaled $18.3 million, which is actually down nearly 50% from May’s $35.2 million. However, analysts remain optimistic, believing that the overall momentum will carry the remainder of the year.
The operators paid a combined total of $28.9 million in taxes to the state of Michigan in June. This figure includes iGaming taxes and fees of $28.4 million and online sports betting taxes and fees of $545,632. The three Detroit casinos reported $7.4 million in wagering taxes and fees during June, while tribal operators reported $3.5 million in payments.
The Evolving Competitive Landscape
Competition in Michigan’s iGaming sector is increasing. Recently, Ceasars Casino Michigan transitioned to Ceasars Palace Casino Michigan, reflecting its goal to enhance its online casino product in the state.
The global online gambling market is rapidly expanding and is expected to top $213 billion by 2028. One of the key reasons for this growth is the advancement in virtual reality technology coupled with increased accessibility to mobile phone and internet technology, allowing players to engage in online casinos 24 hours a day.