The Wolverine State experienced an iGaming revenue record in March but another blizzard of betting was right around the corner as April marked the second-highest revenue month in the state’s online casino gaming history.
Back-to-Back Bangers
Michigan’s iGaming market is white hot as evidenced by a monthly iGaming revenue record of $215.5 million in March followed by the state’s second-biggest revenue haul in April of $192.9 million. Although April experienced more than a 10% dip from March’s prodigious revenue numbers, it should be noted that it was a 21% rise over the previous April.
The online casino industry in Michigan in 2024 is expected to experience continued year-over-year growth and we could see revenues top out at over $200 million in September, October, and November of this year. Needless to say, the online operators and the state’s tax collectors are pleased with the results, with the latter collecting $35.8 million in taxes.
FanDuel has experienced rapid growth and has edged BetMGM as the No. 1 online casino platform in Michigan. After posting a Michigan all-time high of $57.6 million in revenues for March, the mobile sports betting and iGaming titan generated $50.7 million in April revenues which was $900,000 more than BetMGM.
FanDuel’s revenues from iGaming in Michigan have reached nearly $200 million over the first four months of 2024 which is a staggering 61.2% year-over-year increase. Although FanDuel has edged BetMGM in revenues over the last two months, the latter still holds a narrow year-to-date lead with $203.1 million in revenues in 2024.
Casino Cannibalization a Non-Factor
There are several reasons why most sports betting states have yet to embrace iGaming. One of those reasons is the concern that online casino gaming will steal land-based casino customers and either put them out of business or heavily damage their bottom lines. That has proven to be a myth in Michigan as the three casinos are partnered with online brands and generate revenue because of it.
National Council of Legislators from Gaming States President, Shawn Fluharty, spoke to the topic recently, saying, “Regarding cannibalization, current iGaming states didn’t have the cannibalization talking point when considering legislation. Brick-and-mortar casinos continue to run strong in those states.”
Fluharty also emphasized the need for cooperation and collaboration between the digital and physical realms.
“Collaboration is the most important issue that deserves more attention when considering legislation,” Fluharty said. “When we were passing iGaming (and sports betting) in West Virginia, we reached out to David Rebuck and New Jersey. We worked with our regulators, West Virginia Lottery, to get legislation across the finish line. Without that collaboration, it doesn’t happen.”
The biggest concern, according to Fluharty, is the offshore market siphoning off U.S. customers and removing those dollars from the domestic market. Naturally, the offshore sites do not pay taxes to the U.S. government nor are their customers’ winning reported to the government.
“Lawmakers should be focusing on cannibalizing the black market… At the end of the day, lawmakers have the opportunity to raise new revenue without raising taxes, shrink the black market, and provide consumer protections which currently do not exist,” he said.
“Those are sound policy objectives, not just political talking points.”
