Michigan Online Casinos Surpass $4 Billion in Total Revenue in Record Time

The Michigan online gaming market surpassed the $4 billion milestone in total revenue in September.

The September total of $166.4 million in revenue was the second-most for a month since it launched iGaming in January 2021, flailing just short of the $171.8 million record set in March. It was also a 9.3% month-to-month increase on August and a 29.3% jump annually.

The news comes as retail casinos, specifically those in Detroit, have been hit hard by labor strikes amid dissatisfaction with failed contract negotiations and poor compensation.

Michigan is no stranger to setting high marks in the online gaming world. According to records published by the Michigan Gaming Control Board, the Great Lake State was the fastest to reach $1 billion in tax funding and is also now the fastest to eclipse the $4 billion revenue threshold (33 months). That’s the same as roughly $124.3 million in monthly gaming handle.

The September total also means that Michigan has generated nearly $1.41 billion in online gaming revenue in 2023 alone, which averages out to $156.7 million per month and forecasts $1.88 billion in revenue through a 12-month period. That would mark a near-20% growth on 2022’s annual total of $1.58 billion, which is the current record for a year.

Michigan online casinos paid $31.3 million in taxes to the state and $11.5 million to local groups in September. And judging by last year’s numbers, those payments, along with the revenue, could continue to increase towards the end of the year.

In 2022, October, November, and December saw Michigan set consecutive monthly records for online casino revenue ($141 million, $145.4 million, and $152.8 million, respectively).

The 29% annual increase in September shows that the interest in iGaming is still continuing to grow.

BetMGM Michigan was the top earner in September and contributed $48.6 million (29.2%) to the revenue total. DraftKings added another $37.1 million, a company monthly record in Michigan, just a few days after it was revealed that the company surpassed FanDuel for the largest market share of the country’s online gambling market.

FanDuel also set a record with $35.2 million in revenue, which beat its $34.2 million mark.

DraftKings, FanDuel, and PointsBet (A Fanatics Experience) are all far ahead of the trajectory they set in 2022. DraftKings has already hit $260.9 million in revenue, which is 48% ahead of where it was at this time last year. FanDuel and PointsBet are also 56.8% and 96.4% ahead of where they were in September 2022.

Despite DraftKings claiming the largest haul of September, its 2023 revenue total of $260.9 million still falls behind FanDuel’s $281.5 million.

While the Michigan online market is thriving, frustrations are bubbling over at the ground level. The controversy kicked off last week when laborers abandoned their posts and went on strike at casinos last week, forcing several facilities to halt services such as table games, restaurant service, and more.

3,7000 workers from MGM Grand Detroit, MotorCity Casino, and Hollywood Casino took to the streets after a vote to strike passed with 99% support at a union meeting.

Many of the active strikers also showed up to a Detroit City Council meeting Tuesday where plans to resolve the strikes were discussed. The workers are asking for higher compensation packages as inflation has spiked 20% since September 2020, the last time contracts were agreed to, while workers’ pay has only climbed 3%.

Detroit is liable to lose out on more than $450,000 in tax revenue every day the strikes rage on. Gambling provides the second-largest share of the city’s tax pool, the Detroit City Council said.