February 2023 was another prosperous month for Michigan online casinos. A recent report from the Michigan Gaming Control Board states that Michigan casino revenue hit $148.17 million for the entire month. While not quite as high as the figures for January or February, it still represents a very impressive total for this growing industry.
It’s easy to look at the data and suggest that things are on the decline. Yes, there was a drop in revenue from January, which saw $153.7 million in gross receipts for internet gaming across the state. But there’s no need for alarm as one significant reason stopped February from being a record-smashing month.
With three fewer days, there was less time for Michigan online casinos to claim some extra revenue at the end of the month. Had they been given the chance to collect receipts for these three days, the total revenue would’ve exceeded January’s and set a new record!
On Course For A New State Record
It’s a shame that the 28 days of February were all casino apps could count towards the final figures for the month. $148.17 million in revenue is still wildly impressive regardless of how you look at it. We just think it would’ve been interesting to see the figures if a full 31 days were present and accounted for. Perhaps after the March data comes through next month, we can see the first three days and add that to February’s figures, getting a more accurate view of how successful that month was.
Realistically, none of the Michigan online casinos will care about this figure as it still showcases lots of money being made. The bigwigs and higher-ups will also look at the rate at which this money was generated as another source of comfort. Put simply, the $148 million mark was hit sooner than it was in either December or January. Forecasts predict that the extra three days could’ve translated to revenue of around $164 million.
What’s the significance of this? For one, it would’ve set a new state record for Michigan. Secondly, the $160 million club is highly exclusive – only Pennsylvania has managed to join it so far. The predicted revenue for a 31-day February would’ve come extremely close to the all-time National record (which was set this February by Pennsylvania).
Who knows, perhaps the forecasts were slightly off and Michigan online casinos could’ve set a new national record for monthly revenue?!
A Significant Increase From February 2022
Comparing February 2023 with January 2023 isn’t a fair fight for many reasons. What we should be doing is looking at the stats from last year and seeing how they fare. This gives a more accurate reflection on how well the internet gaming market is doing in Michigan.
After taking taxes into account and adjusting the gross receipts for internet gaming this February, Michigan online casinos made a total of $133.28 million.
Comparatively, the adjusted revenue after taxes for February 2022 was only $110.56 million.
Overall, there has been an incredible 20.6% increase in revenue this year. It demonstrates the growing popularity of online casinos in Michigan, with more and more players taking part each month.
To put more context into things, we can combine the adjusted gross receipts for both January and February this year. A whopping $271.6 million has been made, compared to just $219.7 million in January & February 2022.
All Eyes Are On A Record-Breaking March
Until February, Michigan online casinos were on a five-month streak of constantly setting new record highs for internet gaming revenue. As mentioned already, this streak could well have continued if it wasn’t for the lack of days in February.
$148 million across 28 days works out at around $5.3 million in revenue every single day.
For comparison, January’s $153.7 million works out at around $5 million in revenue every day.
If Michigan casino apps and online casinos continue at the rate set in February, March is on course to be a record-breaking month. Data suggests that the daily rate could in fact increase even more – it has done over the last five months. This could put March on par with Pennsylvania, fighting for the national record.
February 2023: Michigan Casino Revenue Key Talking Points
Aside from the revenue figure, there were many other key talking points in the February findings. Here are some of the biggest things we took from the report:
$36.3 million paid in taxes
The month of February was a very costly one in terms of taxes for Michigan casino operators. A massive $36.3 million was paid in total – $26.3 million of which went to the state.
$7 million was paid by the three Detroit casinos to the City of Detroit. This was for wagering taxes and municipal service fees during the month of February.
The remaining $3 million was paid to governing bodies.
A total of 15 operators offered internet gaming in Michigan
15 different Michigan online casinos were in operation throughout this month – an all-time high. You can find detailed tables of all the operators and their earnings on the Michigan state website here.
As a brief overview, the top three online casino operators were:
- BetMGM – $48,444,735
- FanDuel – $29,473,946
- DraftKings – $26,864,224
These three have a clear stranglehold over the industry, with the next highest-earning brand (BetRivers) only managing $8.2 million in revenue.
Down at the bottom of the table, the lowest earners were:
- SI – $587,466
- PointsBet – $1,457,316
- FireKeepers – $1,558,153
A record low for BetMGM as rivals up the heat
As the stats show, BetMGM is still leading the way as the top online casino operator in Michigan. Its revenue figures are constantly through the roof, earning nearly $20 million more than its nearest rival throughout February.
Ironically, this month’s total revenue was the worst that BGM has recorded for many months. The last time it earned under $50 million in a month was back in September. Funnily enough, September was also the last time it earned less than it did this February.
It’s easy to look at this and circle back to the total revenue for the month. We’ve already discussed that February’s stats can be a bit misleading. At face value, it looks like online casinos in Michigan were in decline when compared to January. When you look at the daily earnings, you see that it would’ve been an increase on the previous month had there been 31 days again. Can the same be said for BetMGM and its lower earnings?
No, this is genuinely the start of a decline for the company. For starters, it was the lowest revenue figure since September, which is a big shock to everyone. More importantly, big strides were made by its closest rivals during the same month.
FanDuel beat its record from December 2022 by just under $600,000 while DraftKings broke the record it set in January 2023 by $700,000. It should be no surprise to see the success of DraftKings Casino considering the best DraftKings Casino bonus is over $2,000 for new players.
There are very promising signs at the top, despite BetMGM still sitting very pretty at the head of the table. Alongside the record-breaking months for FanDuel and DraftKings, we saw new record revenue for Parx, PointsBet, Play Eagle, and WynnBet.
All-time revenue edges closer to $3 billion, almost sets new record
Another record was very nearly shattered in February by Michigan casino apps.
The total all-time revenue for the state hit $2,998,317,099. This makes it agonizingly close to crossing the elusive $3 billion threshold. It’s a feat that only two other states have managed: Pennsylvania and New Jersey.
Pennsylvania currently holds the record for the fastest time to reach $3 billion, doing so 38 months back in August 2022. New Jersey was slightly slower, taking 91 months way back in May 2021.
Remarkably, Michigan is on track to completely shatter that record. At the time of writing, we are nearing the end of March and it’s highly likely the $3 billion mark has been reached. This would mean it took a mere 27 months for Michigan online casinos to clear $3 billion in revenue! It’s a staggering statistic that cements the state as one of the fastest-growing places for internet casinos and online betting.
Michigan Casino Revenue: A Summary For February 2023
To sum everything up, here’s what you need to know about Michigan’s online casino revenue for February 2023:
- $148.2 million earned
- $36.3 million paid in taxes
- $2.9 billion all-time revenue
- $5.3 million earned per day, a record-high rate
- A 20.6% increase in revenue from February 2022
- A 3.6% decrease in revenue from January 2023
- BetMGM had the highest total revenue ($48.4 million)
- 15 casino operators, 6 of which record record-high earnings
Overall, it’s been a very promising month for internet gaming in Michigan. Had there been an extra few days in February, the headlines would all be about another record-breaking month. We now look ahead to March to see if things continue on this upward trend.