The Michigan Gaming Control Board reported a record $181.4 million in gross internet casino gaming revenue for December, the third time in as many years operators finished with a record haul.
The figure represented an increase of 18.7% compared to the $152.8 million generated in the final month of 2022 and is 49% higher than the $121.8 million claimed in December 2021. The figure does not include the record $61.1 million in gross sports wagering revenue reported by Wolverine State digital sportsbooks.
The 15 online casino platforms finished 2023 with $1.92 billion in gross winnings, up 21.6% from the previous year. Following the standard 10% allowed in deductions, the state was eligible to tax $1.73 billion of that amount. That resulted in the state receiving $354 million in taxes, an increase of $64.8 million compared to 2022.
The City of Detroit saw an inflow of $8.4 million into its coffers for December and $89.4 million for the 2023 calendar year. Tribal disbursements totaled $4.3 million in the final month of the year, while the $43.1 million for all of 2023 was an increase of $10.3 million. Michigan taxes online casino gaming at a progressive rate, starting at 20% and reaching as high as 28% if operators attain certain revenue benchmarks over the course of the year.
BetMGM again holds off FanDuel for top spot
Though FanDuel was the biggest mover among iGaming platforms in Michigan in 2023, the one thing it has yet to do is overtake BetMGM for the top monthly revenue spot. BetMGM put slightly more distance between itself and its rival to end the year, ticking more than $300,000 higher to $47 million while FanDuel slid roughly $1 million to $42.9 million. FanDuel, however, had a 56.7% surge in year-over-year gross revenue to $405.4 million, while BetMGM’s $586.4 million was down 0.4% versus 2022.
The first full month of ESPN BET being available as a casino gaming platform proved a popular draw, as the Greektown casino mobile tether posted an all-time best revenue haul of more than $6.4 million. It was the first time a PENN Entertainment licensee attached to Greektown topped $5 million since Barstool reached $5.2 million in April 2022. The late windfall reduced Greektown’s year-over-year decline to 13.9%, with its final revenue total landing at $44.8 million.
It was the second consecutive month in which the three Detroit-based iGaming platforms set a record for revenue, with the $96.4 million for December a 10% increase compared to the final month of 2022. It was also enough to put the trio over $1 billion for the 2023 calendar year, an improvement of 15.2% versus the $899.7 million in gross winnings spanning the previous 12 months.
DraftKings paces tribal tethers
DraftKings led the dozen tribal-tethered iCasino platforms in December revenue at $36.5 million, its second-best monthly total behind the $37.1 million claimed in September. DraftKings topped $30 million on four occasions in 2023 after entering the year with a monthly high of $26.2 million. The $364.4 million in gross winnings was a 46.7% increase from 2022, with revenue up $116 million.
BetRivers was one of four platforms to close the year with an all-time high, reaching $11.5 million. It is one of only three operators to have an eight-figure revenue haul in any month in Michigan, with December’s total a third consecutive month for setting a new standard.
Caesars Palace ($9.6 million), Soaring Eagle ($3.2 million), and betPARX ($2.9 million) were the other tribal-tethered platforms that set all-time highs. The group of 12 totaled a record $85 million in gross revenue for December, up 30.4% from the final month of 2022.
The revenue gap between the commercial and tribal groups shrank by nearly $3 million from November to $11.4 million, but tribal-based platforms had a greater year-over-year percentage increase than their commercial counterparts. The $887.3 million in gross winnings by tribal-based licensees was up 30%, while the $932.9 million originating from Detroit represented a 14.8% uptick from 2022.
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