Michigan has become the fastest state to reach $1 billion in online casino tax revenue.
The Michigan Gaming Control Board released August’s revenue numbers on Tuesday. With the $40.8 million in tax revenue generated last month, it puts Michigan at $1.02 billion lifetime.
The 32 months it took Michigan to hit this mark passes Pennsylvania (36 months) for the fastest to $1 billion in tax revenue.
“It’s another billion-dollar milestone for Michigan’s online casino sector,” said Dave Briggs, managing editor of PlayMichigan.com. “In July, Michigan topped $1 billion in online casino revenue for the year and now, in August, it has passed $1 billion in lifetime taxes collected from online casinos.”
“The fact Michigan has surpassed $1 billion in tax revenue from online casinos faster than any other state is a true testament to the power of the sector to drive benefits back to the citizens. Tax revenue from online casinos provides important support for responsible gambling initiatives, first responders and Michigan’s School Aid Fund.”
When it comes to revenue, Michigan’s online casinos produced $152.2 million for August, the fifth-largest total for 2023. While nearly 1% lower than July’s mark of $153.6 million, it’s still 16.3% larger than the $130.9 million generated in August of 2022.
August 2023 Michigan online casino revenue
Online casinos in Michigan continue to make big gains from a year ago with August surpassing last year’s mark by $21 million.
- Online casino revenue: $152.2 million, down 0.9% from July
- August online casino tax payments: $28.6 million to state and $10.5 million to local entities
- Top online casino app by revenue: BetMGM Michigan with $44 million
Three takeaways from August Michigan online casino report
Fastest to $1 billion in tax revenue
Michigan was the fastest state to get to $1 billion in online casino tax revenue with August’s numbers.
Pennsylvania took 36 months to hit the mark, while New Jersey has still yet to get there. It should be noted that each state has different tax rates for online gambling.
The $1 billion in tax revenue from Michigan’s online casinos speaks volumes when you consider that sports betting has produced just $51.1 million over the same timeline.
The big three of BetMGM Michigan, FanDuel Michigan and DraftKings Michigan have been responsible for 72.7% of the total tax revenue. Those three have generated $742.6 million of tax revenue on their own.
Michigan’s online casino tax revenue contributes to a number of funds and programs. That includes the School Aid Fund and First Responders programs.
Michigan up 22.3% in revenue from 2022
With the $152.2 million in online casino revenue generated in August, Michigan is now up to $1.24 billion for the first eight months of 2023.
That is up 22.3% to the $1.01 billion the state had through eight months of 2022.
While September 2022 generated just $128.7 million in revenue, the final three months of last year is when the state saw its real spike in online casino revenue.
It’s hard to imagine Michigan continuing 20%+ growth over the final quarter of the year.
However, Michigan is currently averaging $155.1 million per month in revenue. If that continues, the state would hit $1.86 billion in revenue for the year, a new record.
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FanDuel closing the gap on BetMGM?
BetMGM Michigan was again the online casino leader in Michigan for August. However, it’s lead was the smallest it has been in over two years.
BetMGM recorded $44 million in revenue last month. That was the lowest mark it has been at since January of 2022.
Coming in second in August was FanDuel Casino MI with $33.2 million in revenue. That was FanDuel’s second-highest monthly revenue total ever.
The $10.8 million difference between the two operators was the smallest margin since February of 2021, the first full month that Michigan online casinos existed.
Michigan online casino August 2023 revenue by operator
|MGM Grand Detroit||BetMGM||$44,038,644||$4,403,864||$11,593,173|
|Little River Band of Ottawa||BetRivers||$10,541,446||$1,054,145||$2,656,445|
|Keweenaw Bay||Golden Nugget||$7,220,530||$722,053||$1,819,574|
|Grand Traverse Band of Ottawa and Chippewa||Caesars||$6,853,300||$685,330||$1,727,032|
|Sault Ste. Marie Tribe of Chippewa||WynnBet||$4,655,881||$284,454||$1,224,000|
|Pokagon Band of Potawatomi||Four Winds||$3,171,860||$317,186||$799,309|
|Little Traverse Bay Bands of Odawa||Fox Bet||$3,012,568||$301,257||$759,167|
|Match-E-Be-Nash-She-Wish Band of Pottawatomi||betParx||$2,058,330||$205,833||$511,395|
|Nottawaseppi Huron Band of Potawatomi||FireKeepers||$1,673,761||$167,376||$448,214|
|Lac Vieux Desert Band of Lake Superior Chippewa||PointsBet||$1,367,010||$136,701||$295,410|