The iGaming industry in Michigan is booming. Regulators have released the revenue totals or August, and with sports betting and online gambling numbers combined, the state brought in over $113 million for the month.
Gaming operators generated $97.2 million which was the highest month since January, easily surpassing the $95.1 million earned in March. For sports betting, the industry was up to $15.9 million in earnings, with a betting handle of more than $192 million. This was a 2.3% increase from the previous month.
BetMGM Claims Top Spot
When it comes to individual operators, BetMGM is the top producer. The brand earned over $39 million and gains more than 40% of the market share for the month. The casino produced the most earnings, but BetMGM also has a poker site that helped boost its numbers.
For sports betting, it was FanDuel and DraftKings taking the top two spots. FanDuel generated just over $14 million while DraftKings earned $12 million. FanDuel captured over 14% of the market and DraftKings was close to that number with 13%.
When it comes to the online casino totals, it was the live dealer games that helped boost numbers. In late July, live dealer roulette, blackjack, and baccarat were live. The titles are offered by Evolution via a studio located in Southfield.
August was the first month in which the games were operational for an entire month and were offered by 10 casinos in the state. Players were receptive to the new options, which helped to increase the overall earnings in the states iGaming sector.
Taxes and Payments
In Michigan, the taxes and payments made to the state are based on the adjusted gross receipts of operators. The adjusted totals include deductions from free play incentives offered by the online operators and wagered by players.
In total, online gaming operators paid $17.9 million in August. Online sports betting came in much lower, with $540,706 in payments. When it comes to online gaming, the state earns 70% from the tax paid by commercial operators and 80% from tribal operators.
Commercial sites for sports betting pay 8.4% in taxes with 70% of that amount going to the state and 30% goes to Detroit, since it is the home city of the commercial venues. Tribal operators pay an 8.4% tax as well to the state in this sector.
The casinos located in Detroit have to pay city wagering taxes and fees for municipal services. The operators ended up paying $5.1 million in fees. The online gaming industry provided the most at $4.9 million while sports betting issued just over $216,000 in payments.