IGaming Fueling Revenue Growth in Michigan - Newstbt.com
In the Great Lakes State, online casinos and sports betting revenue has been rising quickly in 2023: in June of this year, the figure was up 24% year-over-year. IGaming and sports betting combined contributed to this impressive growth.
In the first half of 2023, Michigan’s online casinos and sportsbooks generated an impressive total of over $1.1 billion in GGR. June’s revenue figures alone reached $169.3 million, confirming the state’s high-earning trajectory for the year. Comparatively, that same period in 2022 only generated a total GGR of approximately $757 million. It’s safe to say that the upcoming months of 2023 are going to leave us in awe. Experts predict the total revenue for the remainder of the year to potentially even reach the $2 billion mark. IGaming, or online wagering, is the main factor that has fuelled Michigan’s growth in this field. June recorded over $151 million from this sector alone, thus making it the fourth consecutive month where numbers surpassed the $150 million mark. On the other hand, sports betting data has displayed a rather scattered result. (Image: Crain’s Detroit Business)
Gross sports betting receipts totaled $18.3 million in June, which is a decrease of almost 50% from the $35.2 million in May. However, analysts are steadily upbeat in light of the growth seen in the sector and remain positive for the remainder of the year. The operators in Michigan paid a total of $28.9 million in taxes and fees to the state in June, consisting of $28.4 million for iGaming taxes and fees and $545,632 for online sports betting taxes and fees. The three Detroit casinos paid a wagering tax and fee total of $7.4 million and tribal operators paid $3.5 million during the same period. Michigan is expected to see even more competition as the sector continues to grow.
Competition Increasing in Michigan
This week saw a major transition for Ceasars Casino Michigan to now be known as Ceasars Palace Casino Michigan. This change highlights Ceasars’ goal of developing and strengthening their online casino product in Michigan, Pennsylvania and West Virginia. Their new online casino features an increased selection of games as well as integration with their loyalty program. CEO and Director of Caesars Tom Reeg has said that the new capabilities are “light years beyond” anything that they have done before. Ceasars is striving to become competitive in the Michigan market, with other operators like Bragg Gaming Group also making advances through the FanDuel platform.
Yaniv Sherman, CEO of Bragg Gaming Group, commented that the implementation of their unique and third-party exclusive games and technology with FanDuel in Michigan and Connecticut further demonstrates the success of their new US content plan. He added that the company puts a major focus on promoting online casinos.
Online Casinos a Major Focus
Legislative conflicts and rivalry are prominent in the expanding iGaming sector. Michigan is one of six states to permit legalized iGaming, and other states are working to be included in the group. This push has come just as sports betting has become accessible to almost half of the USA. Online casinos have been a greater concern for legislatures to authorize in their states, which has been pointed out in multiple recent articles. Internationally, online gambling is escalating quickly. Arizton anticipates that the international online gambling market will reach $213 billion by 2028, which is up from its current value of $105 billion. The growth is mainly attributed to the blend of virtual reality technology plus expanded access to mobile phones and the internet, allowing you to play in a casino anywhere and at any time.
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