by Scott McClallen
Michigan internet gaming and sports betting operators reported $42.7 million in gross receipts for the 10 days after its initial launch.
Michigan’s online sportsbooks generated $115.2 million in wagers in the 10 days in January, according to the Michigan Gaming Control Board (MGCB).
Michigan’s in-person and online sports betting hit a record $150.8 million, according to Playmichigan.com, beating out Tennessee’s record of $131.4 million during its launch month last November.
“There is no questioning the power of online sports betting at this point,” Playmichigan.com analyst Matt Schoch said in a statement. “January was just a snapshot, but online betting will eventually account for 90% or more of the state’s total handle, which would put it much more in line with other legal jurisdictions that offer both online and retail betting.”
Internet gaming gross receipts were $29.4 million. Internet sports betting operators drew $13.3 million in total gross sports betting receipts.
“Internet gaming operators are off to a good start in Michigan,” MGCB Executive Director Richard S. Kalm said in a statement. “The taxes and payments from online gaming will provide funding for K-12 students, the city of Detroit and Michigan tribal communities.”
Michigan received $4.4 million in taxes and payments for January, with internet gaming taxes comprising $4.3 million and internet sports betting clearing nearly $111,700.
The state receives 70% of the total tax for internet gaming from commercial operators and 80% of the total payment from tribal operators. The tax and payment rate ranges from 20% to 28% based on yearly adjusted gross receipts.
For internet sports betting, commercial operators pay 70% of the 8.4% tax to the state and 30% to Detroit. Tribal operators make an 8.4% payment to the state on adjusted gross sports betting receipts.
FanDuel/MotorCity Casino took first place with $32.6 million in online wagers and $622,372 in gross sports betting receipts. DraftKings/Bay Mills Indian Community was second with a $28.2 million handle, with $3.4 million in gross receipts.
“Launching with 10 operators ready to go from the beginning is unlike anything else we’ve seen before,” PlayMichigan.com Analyst Dustin Gouker said in a statement. “Having FanDuel and DraftKings, in addition to BetMGM, BetRivers, and Barstool, accepting bets on the first day of operation makes Michigan instantly one of the most competitive markets in the U.S. The vastness of choices is great for consumers, obviously. But it shows just how much confidence operators have in the future of the Michigan market.”
The three Detroit casinos reported city wagering taxes and municipal services fees of $1.3 million for January, 95% from internet gaming taxes and fees, with the rest from internet sports betting taxes and fees.
Tribal operators reported $428,615 of wagering payments to the tribes’ governing bodies.
– – –
Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Sports Betting” by Baishampayan Ghose. CC BY-SA 2.0.