In November, the state of Michigan saw a surge in online casino activity, setting a new record for the month.
On December 23, 2023 at 02:12 AM, a post was made.
Last updated on: December 22, 2023, 04:13h.
It is likely that Michigan’s online casinos experienced a boost in activity due to a strike by casino employees in Detroit last month.
In November 2023, employees of Detroit’s casinos held a protest demanding higher wages. As a result of the strike, Michigan’s online casinos experienced a surge in revenue for the month. (Image: Detroit Free Press)
The MGCB announced that online casinos in Michigan earned $175.3 million in revenue during November. This is the highest amount generated in a single month since the launch of internet gambling in January 2021.
In November, the state saw its highest iGaming revenue of $209.2 million, surpassing the previous record of $171.8 million in March 2023. Online sportsbooks contributed $33.9 million to this total.
March 2023 remains the best online gaming month in Michigan history, as sportsbooks that month won $44.5 million from bettors for a combined haul of approximately $216.3 million.
November marked a strong month for iGaming in general. In New Jersey, one of the other six states in the US where online slots and table games are regulated, internet casino revenue hit a record $171.5 million. In Pennsylvania, another iGaming jurisdiction, online casinos generated gross revenue of $158 million.
Commercial and Tribal iGaming, Sports Betting
The state of Michigan permits the three commercial casinos in Detroit and the gaming tribes to offer remote casino games and online sports betting through partnerships with third-party companies.
BetMGM, the internet-based casino and sports betting collaborator of MGM Grand Detroit, remains at the forefront of Michigan’s online gaming industry. In the previous month, BetMGM earned $46.7 million from its online casino. FanDuel, MotorCity’s partner in online gaming, came in second with $43.9 million in earnings.
The Bay Mills Indian Community, the owner and operator of the Bay Mills Resort & Casino and Kings Club Casino, has collaborated with DraftKings for their iGaming and sports betting operations. DraftKings dominated the online tribal market last month, with their casino platform earning approximately $34.7 million. The DraftKings Sportsbook also performed well, earning $10.6 million from over $151.8 million in bets.
Among online sports betting platforms, FanDuel holds the top position as the leading player. In terms of profits, FanDuel’s internet oddsmakers earned $9.7 million from $213 million in bets, while DraftKings came in second with a net win of $4.5 million from $77.8 million in wagers.
The online sportsbook, ESPN Bet, operated by Penn Entertainment, announced a total revenue of $6 million and accepted $49.9 million in bets through its partnership with Greektown. To celebrate the launch of ESPN Bet, Penn offered various incentives, but after accounting for these promotional bets, the sportsbook reported a loss of $10 million.
In the span of 11 months, Michigan bookmakers have received a total of $4 billion in online sports wagers. They have profited $359.2 million from these bets. Online casinos have also earned a combined $1.7 billion from individuals gambling on their laptops and phones.
Detroit Casinos Falter
In November, online activity was strong, but the three Detroit commercial casinos did not experience the same success due to a strike by workers. The physical slot machines and table games at MGM Grand, MotorCity, and Greentown only brought in a total of $76 million in gross gaming revenue (GGR).
The retail sales for November saw a decrease of almost 24% compared to November 2022, resulting in a loss of revenue of more than $23.9 million. MGM reported a decline of $30.6 million, a decrease of 34%, MotorCity earned $24.7 million, down 18%, and Greektown earned $20.7 million, down 11%.
On November 17th, the labor union Unite Here Local 24 and casinos agreed on new collective bargaining agreements, resulting in the resumption of full operations at each property. During the strike, union leaders had urged customers not to use commercial iGaming sites, but this did not have a significant impact on consumer behavior, as shown by revenue reports.
