Michigan iGaming posts record $122M revenue in February; sports betting falls in post-NFL low

Michigan commercial and tribal iGaming and sports betting operators reported a combined $145.3 million in February gross revenue, the Michigan Gaming Control Board announced on Thursday. This implies a 6.8% drop when compared with January results. However, online gaming in the Great Lake State posted a new record at $122.8 million in revenue, barely exceeding the previous all-time high of $121.8 million, which was set in December 2021. Meanwhile, gross sports betting receipts totaled $22.5 million.

Combined total adjusted gross receipts of $106.6 million were reported for the month, including $110.6 million from internet casino gaming and a $3.9 million loss for mobile sports wagering. Monthly iGaming adjusted gross receipts were 1.3% higher than in January. 

When compared with February 2021 results, monthly internet gaming adjusted revenue was up 47%, while internet sports betting adjusted gross receipts rose 63.4%. For the first two months of the year, iGaming adjusted gross receipts totaled $219.7 million, and aggregate mobile sports betting adjusted gross sports betting receipts were $15.2 million.

The state’s online and retail sportsbooks took in nearly $425 million in wagers last month, a figure that marked the first month-over-month drop in handle since July 2021. However, this was expected as sports betting entered a quieter stage after the NFL season ended, a seasonal trend that online casinos were unaffected by as they set their new revenue record.

“Michigan sportsbooks flew out of the gates in 2021 and the growth since has been relentless,” said Paul Costanzo, lead analyst for PlayMichigan.com. “The rapid growth over the last year will be nearly impossible to maintain in the year ahead, but the upward trajectory of the industry will continue into the foreseeable future.”

Out of the total $423.8 million in sports handle, most of it came from online books, which attracted $398.4 million in bets last month, down 19.8% from January. Detroit brick-and-mortar venues handled $25.4 million in retail betting. Combined handles were down 20.4% from $532.7 million in January, although the total handle was up 30.2% from February 2021.

“The period between the Super Bowl and March Madness is always relatively slow for sportsbooks,” said Eric Ramsey, an analyst for the PlayUSA.com Network. “The NCAA Tournament should push betting back over the $500 million plateau, and wagering could move even higher if Michigan or Michigan State can go on a surprise run.”

FanDuel placed first among online operators, posting $122.4 million in handle. Meanwhile, DraftKings ended second, with $94.7 million in online bets. The third place corresponded to BetMGM, which followed with $86.7 million in online wagers.

February revenue figures for Detroit’s three casinos were released by the Michigan Gaming Control Board last week. The venues reported revenue up to $94.7 million: table games and slots generated $95.6 million in revenue, while retail sports betting results showed an $872,552 loss.