SPORTS BETTING
US – Michigan’s online sportsbooks, casinos soar to end record-breaking debut year
By Phil - 19 January 2022
Michigan’s sportsbooks and online casinos ended 2021 on a record-breaking roll, with more than $500m in sports wagers for the second consecutive month and more than $120m in online casino revenue. December’s results were a fitting closure to a debut year that brought $4bn in sports bets and more than $1bn in gross gaming revenue from online casinos.
“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 $484.6m in December, topping the record $473.8m set in November, according to official data released Tuesday. Combined with $30.1m in retail wagering at Detroit-area casinos announced last week, Michigan’s online and retail sportsbooks hit $514.6m in wagering for the month, up 2.8 per cent from the previous record $500.5m in November.
Online operators won $34.8m in gross revenue in December, down 35.8 per cent from the record $54.1m in November but still the second most in state history. With $1.2m in retail revenue, Michigan’s sportsbooks won $35.9m for the month, down 38.9 per cent from $58.8m in November. Taxable revenue for both online and retail wagering reached $12m, yielding $1.2m in taxes.
Michigan’s online sports betting and online casino gaming turns 1 on Jan. 22, and the debut was among the best in US history. For the year, Michigan’s sportsbooks produced $3.97bn in online and retail wagers, $319.5m in gross revenue.$13.6m 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 edged FanDuel with $120.3m in online wagers. Those bets generated $7.3m in gross revenue. FanDuel followed with $119.9m in bets and a market-best $9.6 million on 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.”
Michigan’s online casinos and poker room became the third state in U.S. history to generate more than $1bn in annual revenue — and the first to do it in its first year — after generating $121.8m in gross gaming revenue in December. December’s revenue easily topped the previous record of $109.7m set in October.
For the year, Michigan’s online casinos and poker rooms generated $1.1bn in gross revenue and $279.3m 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 $1bn 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.”
