Online sportsbooks end first year with $4 billion in wagers while online casinos surpass $1 billion in annual revenue, according to PlayMichigan
(LAS VEGAS) — Michigan’s online casinos and sportsbooks ended 2021 on a record-breaking roll, with more than $500 million in sports wagers for the second consecutive month and more than $120 million in online casino revenue. December’s results were a fitting closure to a year in which online sports betting and online casinos debuted in Michigan, generating $4 billion in sports bets and more than $1 billion in gross gaming revenue from online casinos over the course of the year, according to PlayMichigan, which tracks gaming developments in the state.
“Bettors fared much better on their bets than in November, but it was still one of the best months yet for Michigan’s sportsbooks,” said Matt Schoch, lead analyst for PlayMichigan.com. “Online sports betting and casinos hit the higher side of expectations in their first year, particularly online casinos. And the last four months for sports betting have really added an exclamation point to the first year.”
Online sportsbooks alone drew $484.6 million in December, topping the record $473.8 million set in November, according to official data released Tuesday by the Michigan Gaming Control Board. Combined with $30.1 million in retail wagering at Detroit-area casinos announced last week, Michigan’s online and retail sportsbooks hit $514.6 million in wagering for the month, up 2.8% from the previous record $500.5 million in November.
Gross revenue remained relatively high, too. Online sportsbooks won $34.8 million in gross revenue in December, which was down 35.8% from the record $54.1 million in November but still the second most in state history. With $1.2 million in retail revenue, Michigan’s sportsbooks won $35.9 million for the month, down 38.9% from $58.8 million in November. After promotional credits, taxable revenue for both online and retail wagering hit $12.0 million, which yielded $1.2 million in state taxes.
Michigan’s online sports betting and online casino gaming turns 1 on Jan. 22, and the debut was among the best in U.S. history. For the year, Michigan’s sportsbooks produced:
- $3.97 billion in online and retail wagers, likely the fifth-most among all U.S. states that allowed some form of legal sports betting in 2021.
- $319.5 million in gross revenue.
- $3.7 billion in online wagers, generating $292.2 million in revenue
- $310.6 million in retail wagers, up 137.5% $130.8 million in all of 2020.
- $13.6 million in state taxes.
“Sports betting still has plenty of room for growth,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayMichigan.com. “It’s important to remember that Michigan’s bettors are still relatively new to mobile sportsbooks and online-specific forms of betting such as in-game wagering. Meanwhile, sportsbooks continue to expand their customer bases. As familiarity grows, so will the market.”
In December, DraftKings Sportsbook edged FanDuel Sportsbook with $120.3 million in online wagers, down from $126.3 million in November. Those bets generated $7.3 million in gross revenue, down from $13.1 million in November. FanDuel followed with $119.9 million in bets in November, up from $115.2 million in November. FanDuel once again produced the most online revenue in December with $9.6 million.
BetMGM Sportsbook was third, accepting $108.7 million in online wagers, up from $100.8 million in November. Those bets created $9.4 million in gross revenue.
“Sportsbooks got a boost in December from the excitement that came from Michigan’s appearances in the Big Ten championship and the College Football Playoff semifinal,” Schoch said. “With bowl game appearances from four other Michigan schools and interest in college basketball in general and Michigan State specifically, sportsbooks were able to weather the struggles of the Lions and the Pistons.”
Online casinos and poker make history with $1 billion year
Michigan’s online casinos and poker room became the third state in U.S. history to generate more than $1 billion in annual revenue — and the first to do it in its first year — after generating $121.8 million in gross gaming revenue in December. December’s revenue was up 13.2% from $107.6 million in November and easily topped the previous record of $109.7 million set in October.
Michigan joined New Jersey and Pennsylvania — which each went over $1 billion in revenue for the first time in October — as the only states to generate more than $1 billion in annual revenue. For the year, Michigan’s online casinos generated:
- $1.1 billion in gross revenue from online casino games and poker rooms.
- $279.3 million in state taxes.
“It took time for online sports betting to truly ramp up, but online casinos have flourished from the very beginning,” Ramsey said. “Few saw Michigan hitting $1 billion in revenue over the first year, especially considering that no state had ever reached that level before. To do it in year one has been impressive, creating a significant stream of tax revenue from the state along the way.”
Other highlights from December:
- Revenue grew to $3.9 million per day over the 31 days of December from $3.6 million over the 30 days of November.
- December’s win yielded $22.6 million in state taxes and another $8.6 million in local taxes and shares.
- BetMGM led all online casino and poker operators with $46.0 million in gross gaming revenue, which yielded $12.1 million in state and local taxes. DraftKings was second with $121.8 million in gross receipts, producing $5.1 million in state and local taxes.
MI online sports betting revenue, December 2021
| Licensee | Online Brand | Total Handle | Online Handle | Retail Handle | Revenue (GGR) | Promos | State Tax | Local Tax |
|---|---|---|---|---|---|---|---|---|
| MotorCity | FanDuel | $129,225,279 | $119,889,999 | $9,335,280 | $9,512,789 | $3,643,005 | $354,002 | $226,971 |
| Bay Mills | DraftKings | $120,303,731 | $120,303,731 | ? | $7,326,019 | $5,503,956 | $153,053 | $0 |
| MGM Grand Detroit | BetMGM | $117,821,188 | $108,733,102 | $9,088,087 | $10,019,820 | $7,755,103 | $119,900 | $90,749 |
| Greektown | Barstool | $57,554,129 | $45,905,554 | $11,648,575 | $3,258,420 | $619,983 | $142,018 | $104,780 |
| Grand Traverse | Caesars | $38,448,921 | $38,448,921 | ? | $2,605,564 | $3,347,890 | $0 | $0 |
| Lac Vieux Desert | PointsBet | $28,243,093 | $28,243,093 | ? | $1,918,844 | $1,391,976 | $0 | $0 |
| Little River | BetRivers | $6,975,056 | $6,975,056 | ? | $550,026 | $430,967 | $3,917 | $0 |
| Little Traverse Bay | Fox Bet | $5,599,984 | $5,599,984 | ? | $180,910 | $114,393 | $5,587 | $0 |
| Sault Ste. Marie | WynnBet | $3,202,883 | $3,202,883 | ? | $212,685 | $79,767 | $5,655 | $0 |
| Match-E-Be-Nash-She-Wish | Play Gun Lake | $2,359,918 | $2,359,918 | ? | $179,104 | $398,196 | $0 | $0 |
| Nottawaseppi Huron | FireKeepers | $1,573,171 | $1,573,171 | ? | $30,871 | $62,353 | $0 | $0 |
| Hannahville | TwinSpires | $1,471,850 | $1,471,850 | ? | $56,445 | $412,804 | $0 | $0 |
| Keweenaw Bay | Golden Nugget | $1,245,855 | $1,245,855 | ? | $53,716 | $36,669 | $1,432 | $0 |
| Pokagon | Four Winds | $605,478 | $605,478 | ? | $15,013 | $78,834 | $0 | $0 |
| Total | $514,630,536 | $484,558,594 | $30,071,942 | $35,920,227 | $23,875,896 | $785,565 | $422,501 |
MI online casino revenue, December 2021
| Licensee | Online Brand | Revenue | Promos | Taxes |
|---|---|---|---|---|
| MGM Grand Detroit | BetMGM | $45,978,066 | $4,597,807 | $12,103,726 |
| Bay Mills | DraftKings | $20,104,036 | $2,010,404 | $5,066,217 |
| MotorCity | FanDuel | $17,348,630 | $1,734,863 | $4,567,027 |
| Little River Band of Ottawa | BetRivers | $7,942,057 | $794,206 | $2,001,398 |
| Keweenaw Bay | Golden Nugget | $6,137,892 | $613,789 | $1,546,749 |
| Sault Ste. Marie Tribe of Chippewa | WynnBet | $4,795,191 | $479,519 | $1,208,388 |
| Greektown | Barstool | $4,761,996 | $476,200 | $1,253,595 |
| Grand Traverse Band of Ottawa and Chippewa | Caesars | $3,990,132 | $399,013 | $880,218 |
| Little Traverse Bay Bands of Odawa | PokerStars | $2,928,619 | $292,862 | $738,012 |
| Pokagon Band of Potawatomi | Four Winds | $2,472,381 | $247,238 | $623,040 |
| Match-E-Be-Nash-She-Wish Band of Pottawatomi | Play Gun Lake | $1,522,726 | $152,273 | $310,953 |
| Hannahville | TwinSpires | $1,476,555 | $147,655 | $372,092 |
| Lac Vieux Desert Band of Lake Superior Chippewa | PointsBet | $1,172,026 | $7,522 | $252,243 |
| Nottawaseppi Huron Band of Potawatomi | FireKeepers | $1,130,286 | $113,029 | $223,797 |
| Total | $121,760,593 | $12,066,379 | $31,147,454 |
For more information and analysis on regulated sports betting in Michigan, visit PlayMichigan.com/news. Contact: Zack Hall, Catena Media, [email protected].
