Michigan Set New Records in November
The state of Michigan set a number of new betting records during the month of November 2021. The state’s online sports wagering handle and gross betting receipts reached new monthly highs during the period, with consumers wagering a total of $437.8 million online on sports — up 2.3% from the previous record set in October.
Michigan set new betting records during the month of November 2021, with the state’s online sports wagering handle and gross betting receipts breaking new monthly records. ©PhotosByMahin/Pixabay
Sports Betting Revenue Reached New High of $54.1m in November
The state of Michigan’s latest gambling performance reports reveal new monthly records set in November 2021, showing how the state’s online sports wagering handle and gross betting receipts hit new monthly highs during the period.
Michigan bettors wagered upwards of $437.8 million on online sports betting during November 2021, which was up 2.3% from the previous record of $463.3 million which was set back in October.
In light of the high amounts wagered on sports betting in Michigan during the month of November, it should come as little surprise that gross monthly sports betting revenue also reached a new high of $54.1 million, exceeding the previous monthly record of $32.3 million in March this year by an impressive 67.7%.
Switching focus over to online casino, gaming gross receipts stemming from internet gaming totaled an amount of $107.6 million in November 2021, falling just 1.9% short of the monthly record of $109.7 million achieved in October.
Finally, the combined total of online casino gaming and sports betting gross receipts amounted to $161.7 million, standing as a healthy increase of $20.7% when compared to October’s showings.
Adjusted Gross Gaming Receipts also Increased During Period
When adjusting Michigan’s latest gambling revenue performance to include deductions for the monetary value of free bets provided to and wagered by players, then total adjusted gross receipts across sports wagering and iGaming reached $130.8 million — representing an increase of 23.6% from October.
For its part, adjusted gross receipts for online sports betting totaled $34.5 million, while online casino reached $96.3 million. Legal online sports betting and casino gaming launched in Michigan on January 22nd, 2021, and since then, adjusted gross sports betting receipts have totaled $99.7 million, while igaming adjusted gross receipts reached $893.8 million.
Michigan operators paid $21.4 million in taxes and payments on online gambling to the state of Michigan, of which $19.8 million covered igaming and $1.6 million for sports betting. Finally, Detroit’s three commercial casinos – the MGM Grand Detroit, the MotorCity Casino and Penn National’s Greektown Casino Hotel – paid $6.2 million in taxes to the City of Detroit.
Threat of Black Market Active in Michigan
Michigan bettors were warned of the dangers of betting on unlicensed, black market platforms by the Michigan Gaming Control Board (MGCB) as recently as early December 2021, following the regulator receiving complaints regarding the nonpayment of winnings.
Michigan players were urged to enact greater caution after the board received several complaints alleging difficulties in obtaining winnings and deposited refunds from gambling operator websites which were not licensed in Michigan.
Executive director of the Michigan Gaming Control Board (MGCB), Henry Williams, drove the point home by highlighting the potential for customers’ personal information to be obtained by unregulated platforms and then sold for criminal purposes:
“If you share personal information with an unregulated gambling site, there are no guarantees your information won’t be sold to or used by criminals. Identity theft is the most common complaint received by the Federal Trade Commission.”– Henry Williams, Executive Director, Michigan Gaming Control Board (MGCB)
Furthermore, the Michigan Gaming Control Board does not actually have as much power to pursue action against unregulated betting sites as it would like to, making the need for bettors to exercise caution that much greater:
“Unlike regulated gambling, there is no mechanism for the MGCB to handle a patron dispute with an unregulated, offshore gambling site. Our agency does not have the authority to pursue a dispute with an unregulated site.”
Michigan Gaming Revenue Declined in May 2021
Back in May 2021, Michigan suffered a decline in online gambling revenue during the month, which marked a second consecutive month of decline at the time. $114.3 million in iGaming revenue was generated during the month — down 0.8% from April.
Online casino made up the majority of Michigan’s online gambling revenue for the month, bringing in a total of $94.9 million which was roughly equal to April’s previous total. Online sports betting revenue declined for the period, down 4.4%, amounting to just $19.5 million.
Overall spending on online casino verticals, however, remained roughly stable in May, resting at $94.9 million. The state generated $18.1 million in taxes from online casino during the period, as well as an additional $615,153 in online sports betting taxes.
Tax calculated after adjusted gross receipts for online casino was in fact 0.3% higher than April’s results. According to the Michigan Gaming Control Board’s (MGCB) executive director Henry Williams, this meant that local governments received more revenue:
“Adjusted gross receipts for internet casino gaming were up two-tenths of a percent compared with April, which means state, city and tribal governments received more revenue.”
