May’s online casino and poker revenue fell to its lowest level since February as people “spend less time indoors”, according to PlayMichigan.
Down 5.9 per cent from $94.9m to $89.2m, over the 30 days of June, online casinos and poker rooms produced $3m per day, down from $3.1m per day in May, yielding $13.7m in state taxes and $5m in local taxes.
“It’s not surprising to see revenue drop a bit during the summer months, when people tend to spend less time indoors,” explained Jessica Welman, analyst for the PlayUSA.com Network, which includes PlayMichigan.com. “Overall, the online gambling market has been remarkably consistent so far. Growth will return — probably in the fall when the weather begins to turn. In the meantime, online casino gaming will continue to be the most dependable source of revenue for operators and for the state that Michigan’s gaming industry can provide.”
BetMGM/MGM Grand Detroit easily topped the online casino and poker market once again with $33.8m in gross gaming revenue.
Despite the drop in online casino GGR, Michigan’s online and retail sports betting volume rose slightly in June yet remained relatively low as the summer slowdown continued.
“Michigan’s sportsbooks grew so quickly from January through March that the slowdown that has followed might feel more dramatic than the reality,” Welman added. “Sportsbooks remain in excellent position for a ramp up when football season approaches. Until then, they will have to rely on opportunities such as the Olympics and the NBA Finals to stoke interest.”
Michigan’s online sportsbooks accepted $235.1m in wagers over the 30 days of June, down 1 per cent from $237.6m over the 31 days of May, according to official data released on Monday by the Michigan Gaming Control Board.
With $24.4m in retail handle, announced earlier this week, Michigan’s online and retail sportsbooks took in a combined $259.4m in bets, up 0.7 per cent from $257.7m in bets in May.
April, May, and June are typically three of the slowest sports betting months of the year, but no major US sports jurisdiction has experienced a steeper decline from March’s highs as has Michigan.
June’s combined handle is off 32.4 per cent from the record $383.7m combined handle in March. By comparison, Indiana’s sports betting volume dropped 22.2 per cent from March to June, and Iowa is down 31.1 per cent.
Gross gaming revenue at online sportsbooks rose 28.2 per cent to $24.9m in June from a $19.5m total in May. And June’s online sports betting hold of 10.6 per cent for operators was their best for any full month in Michigan.
“We’ve been waiting for a bump in taxable revenue that led to a real increase in tax revenue, which we finally got in June,” said Matt Schoch, analyst for PlayMichigan.com. “If there has been a disappointment with Michigan’s launch, it’s that tax revenue gains have lagged. So hopefully, this will continue into the fall, when we know revenue from sports betting will make a big leap forward.”
FanDuel topped the online market in June with a $77.3m handle, up from $71.2m in May. That led to a market-best $10.3m in gross sports betting revenue, up from $9.3m. June’s action produced $8.1m in taxable revenue.
“FanDuel really opened up a significant market share lead, which will be difficult for any rival to overcome,” Schoch concluded.
