The Michigan Gaming Control Board reported a record $153.7 million in gross operator revenue from internet casino gaming for January on Tuesday, the fourth consecutive month the figure set a new all-time state standard.
The uptick from December’s Michigan revenue was 0.6%, with the increase in dollars less than $925,000, and it was also a 26.8% increase over January 2022. The run of records began in October when operators cleared the $140 million benchmark for the first time since launch January 2021. December marked the first time the $150 million threshold was surpassed.
The adjusted revenue of $138.3 million was also an all-time high and the third consecutive month over $130 million. The state received $24.9 million in tax receipts, while the city of Detroit had an inflow just shy of $7 million. Tribal payments to local jurisdictions totaled $2.7 million.
Mobile sports wagering handle totaled $475.6 million for January, with the retail-plus-mobile total of $490.9 million down 7.8% from the record $532.7 million to kick off 2022. Online operators claimed $33.6 million in winnings for a hold of 7.1%. After promotions and other deductions, the state was able to levy taxes on $17.8 million in adjusted revenue, claiming $1.2 million in receipts.
Overall operator revenue from sports wagering was down 33% compared to December and 7.8% from January 2022. The city of Detroit collected $534,000 in tax receipts from online operators for the first month of this year.
Tribal operators account for January bump
Four tribal online casino operators — Bay Mills (DraftKings), Nottawaseppi (Bally’s), Keweenaw Bay (Golden Nugget), and the Pokagon Band — posted all-time monthly highs in revenue in January. The total tribal iCasino revenue of $67.8 million was an all-time high and 4% better than December’s reported revenue of $65.2 million.
DraftKings accounted for nearly half that total at $23.6 million, bettering its all-time high from December by approximately $75,000. Bally’s revenue haul of $1.8 million was almost $50,000 above its previous record set in August, while the $7.2 million posted by Golden Nugget edged out its August record by $11,000. The Pokgaon Band had a 16.1% surge in revenue to $3.5 million, eclipsing its previous best of $3.1 million in October.
Though BetRivers, which operates through the Little River Band, was second among all tribal-run internet casino sites with $8.6 million, it was 8.4% off its record $9.4 million achieved to close out 2022. Grand Travers (Caesars) and Little Traverse Bay (Poker Stars) rounded out the top five tribal online casino sites with $6.8 million and $3.6 million, respectively.
BetMGM continued to dominate the commercial side of online casino gaming, extending its streak of at least $50 million in gross revenue to four months after claiming $52.8 million in January. That was a 2.8% decline from December’s all-time best of $54.4 million, but also a 20.4% increase compared to the same period last year.
Barstool had the largest decline among the commercial trio in terms of percentage, slipping 3.1% to $4.1 million. FanDuel, operating through MotorCity Casino, was practically flat at $28.9 million — $19,000 off December’s total.
FanDuel continues to run roughshod on sports bettors
FanDuel accounted for more than half the gross online sports wagering revenue in January and more than 75% of the adjusted amount. The mobile titan posted a 13.3% hold on $150 million handle, resulting in $19.9 million in gross revenue. It reported $13.5 million in adjusted revenue and became the first online operator to pay $10 million in taxes since launch.
BetMGM made a strong run for the No. 2 handle spot, finishing within $6.7 million of DraftKings‘ $117.2 million in accepted wagers. DraftKings, though, nearly doubled BetMGM in gross revenue at $6.6 million with a 5.7% win rate, while BetMGM’s 3.1% hold on $110.5 million handle created $3.4 million in gross revenue.
Barstool Sportsbook posted its first online loss for gross revenue as bettors started the year $67,000 ahead on $29.5 million wagered. It was also the third consecutive month Barstool had a sub-5% hold for its mobile wagers. Barstool was not alone in the “L” column in January, as WynnBET took a gross loss of $110,000 from $3.3 million wagered — its third monthly loss in the last five.
Firekeeper’s Casino, which has its own sportsbook app, suffered its fourth consecutive losing month as bettors came out nearly $59,000 to the good from $2.3 million bet. Firekeeper’s has totaled $307,000 in losses during its four-month swoon, posting a minus-3.2% hold on $9.7 million handle.
Caesars Sportsbook, which did not make a mobile tax payment in 2022 until December, made its largest one since launch to start 2023, sending the state $95,000 after its adjusted revenue eclipsed $1.1 million. It grossed $1.9 million from $30.8 million in accepted bets.
Photo: Getty Images
