Press Releases

PlayMichigan.com: Sports betting drops for second consecutive month

Published

3 years ago

June 16, 2021

PlayMichigan.com: Sports betting drops for second consecutive month

Michigan’s sports betting volume slumped for the second consecutive month in May. Meanwhile, online casinos remained achingly close to the state’s first $100 million revenue month — another impressive total for what has already become one of the three largest online casino markets in the U.S. in less than five months, according to PlayMichigan, which analyzes and researches the state’s regulated online gaming and sports betting market.

“Online casinos don’t face the same dramatic seasonal variances as sports betting does, so they act as a steadying force for the industry,” said Jessica Welman, analyst for PlayMichigan.com. “On the other hand, sportsbooks have been hit by the seasonality of sports betting and struggling local teams. It appears they will have to wait until the end of summer before substantial growth can be expected again.”

Michigan online sportsbooks took in $237.6 million in wagers through the 31 days of May, down 4.9% from $249.9 million over the 30 days of April, according to official data released Tuesday by the Michigan Gaming Control Board. Combined with $20.2 million in retail handle, which was announced last week, Michigan’s online and retail sportsbooks took in $257.7 million in bets. That total is down 6.0% from $274.2 million in bets in April.

Gross operator revenue from online betting fell 4.5% to $19.5 million in May from $20.4 million in April. That produced $9.9 million in taxable revenue, down from $10.9 million, yielding $993,784 in state taxes.

With its 28.5% drop in wagering, Michigan’s April handle represented the steepest month-over-month decline among the 10 largest sports betting markets in the U.S. May’s results so far lags behind other states that have already reported April data, too. Iowa’s wagering was down 2.9% in May, for example, while Indiana’s handle rose 7.6%, to $254.4 million.

A slowdown in sports betting from April until the kickoff of football season is inevitable in nearly every state. But Michigan’s decline has been more pronounced because as the initial enthusiasm that came from the launch of online betting began to settle, the sports schedule also waned. Even more, all of Detroit’s professional teams that were in action in April and May — the Pistons, Red Wings, and Tigers — struggled mightily.

“A lack of success from Detroit teams naturally saps interest, and Michigan is facing too many short-term factors to overcome completely,” said Matt Schoch, analyst for PlayMichigan.com. “Despite the declines in betting volume, there aren’t any systemic issues. Even if the Lions’ prospects are equally dim, substantial growth will almost certainly return with the beginning of football season.”

FanDuel/MotorCity Casino led all online sportsbooks with $71.2 million in wagering, down from $74.2 million in April, and $9.3 million in gross sports betting receipts, up from $7 million. That total yielded $7.4 million in taxable revenue.

DraftKings/Bay Mills Indian Community followed with $66.7 million in wagers, up from $61.5 million in April. Gross gaming revenue fell to $1.9 million from $3.4 million in April. BetMGM/MGM Grand Detroit remained third with $51.6 million in bets, down from $54.9 million in April while producing $5.3 million in gross receipts and $2.7 million in taxable revenue.

The online market leaders were followed by:

Barstool/Greektown Casino ($18.2 million handle, down from $24.8 million in March; $1.1 million gross revenue, down from $2.4 million)
PointsBet/Lac Vieux Desert Band of Lake Superior Chippewa Indians ($11.4 million handle, down from $14.1 million; $1 million GGR, up from $807,988)
William Hill/Grand Traverse Bay Band of Ottawa and Chippewa Indians ($6.2 million handle, down from $7 million; $217,050 GGR, down from $346,865)
FOX Bet/Little Traverse Bay Bands of Odawa Indians ($5.1 million handle, down from $5.5 million; $338,049 GGR, down from $371,271)
BetRivers/Little River Band of the Ottawa Indians ($2.8 million handle, up slightly from April; $76,004 GGR, down from $172,146)
Twin Spires/Hannahville Indian Community ($1.5 million handle, down from $1.9 million; $95,645 GGR, down from $163,524)
Wynn/Sault Ste. Marie Tribe of Chippewa Indians ($1.4 million handle, down from $1.9 million; $168,874 GGR, down from $177,154)
Golden Nugget/Keweenaw Bay Indian Community ($923,269 handle, down from $874,114; $10,750 GGR, up from -$2,623)
Four Winds Sportsbook/Pokagon Band of Potawatomi Indians ($545,937 handle, up from $345,719; -$20,000 GGR, down from $7,908)

“The next few months should help bring innovation from sportsbooks, as each operator experiments with ways to spur interest during the slow season,” Schoch said. “Those developments could be unique promotions built around the upcoming Olympics, or interesting NBA playoff or baseball bets. Regardless, innovation in a competitive market is ultimately good for the entire industry.”

Online casinos and poker

Revenue for Michigan’s online casinos and poker rooms hit $94.9 million in May, essentially even with April but still just below the record $95.1 million reached in March. May’s win breaks down to $3.1 million per day of the 31 days of the month, down slightly from $3.2 million per day over the 30 days of April.

The win produced adjusted gross receipts of $89.1 million, up from $88.9 million in April. That total yielded $18.1 million in state taxes and $7.1 million in local taxes.

Michigan is still trying to join New Jersey and Pennsylvania as the only states to reach $100 million in revenue over a single month. The growth has stalled in recent months, but online casinos overall have grown far more quickly than any other U.S. online casino market. Since January, online casinos and poker have generated $393.9 million in revenue and $99.7 million in state and local taxes. By comparison, online and retail sportsbooks have generated $123.5 million in revenue and just $5.2 million in state and local taxes.

“Online casinos have become a powerhouse of revenue generation,” Welman said. “Revenue has remained high, even as retail casinos around Detroit have become more accessible. Looking ahead, the popularity of these games should remain — and likely expand — over the next few months, even as retail casinos’ operations continue to steady.”

Other highlights from May:

BetMGM/MGM Grand Detroit led with $36.1 million in gross receipts, yielding $10.6 million in state and local taxes.
FanDuel/Motor City was second with $16.3 million in GGR, producing $4.3 million in state and local taxes.

For more information and analysis on regulated sports betting in Michigan, visit PlayMichigan.com/news.

About the PlayUSA.com Network:
The PlayUSA.com Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, PlayUSA.com and its state-focused branches (including PlayMichigan.com, PlayNJ.com, and PlayPennsylvania.com) produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.

Compliance Updates

Gaming CEOs Optimistic on Industry Outlook, Report Evolving Industry Challenges

Published

1 day ago

April 30, 2024

Peter Tolan

Amidst an evolving economic landscape, gaming executives report a positive outlook on future industry business conditions while remaining satisfied with the current business environment, according to the American Gaming Association’s (AGA) Gaming Industry Outlook.

Nearly all gaming executives surveyed characterized the current business environment as good (44%) or satisfactory (50%), mirroring similar sentiment from Q3 2023. Meanwhile, executives are more optimistic about future conditions, with 32 percent of CEOs expecting business conditions to improve over the next six months, up from 20 percent in Q3 2023.

“Gaming’s record-setting growth over the last three years has set a new standard for industry success,” said AGA President and CEO Bill Miller. “However, as we enter a period of market normalization, continued investment and innovation in offering world-class, responsible entertainment experiences will be required to maintain industry momentum.”

Gaming Executive Panel

Gaming executives have become more positive in their views that overall balance sheet health will improve over the next 6 months (42% net positive), but they expect the pace of revenue growth (13% net negative) and new hiring (22% net negative) to slow. These expectations for decelerating growth have influenced expectations for increases in capital investment and gaming units in operation, with smaller net positive sentiments than before.

In contrast to past Outlooks, gaming equipment suppliers are slightly pessimistic about the sale of gaming units for replacement use and new or expansion use (both 13% net negative). However, they remain optimistic about the pace of capital investment (38% net positive).
Half of operator CEOs expect capital investments in hotels over the next year to be higher than normal, and compared to last fall, more also expect higher than normal levels of capital investment in meetings and conventions and table games (28%). Meanwhile, 44 percent of CEOs expect increases in food and beverage investment, down from 67 percent in Q3 2023.

These expectations are also informed by evolving macroeconomic challenges. Executives report that inflationary or interest rate concerns continue to be a major factor limiting operations (28%), but these have been overtaken by geo-political risk (34%) and uncertainty of the economic environment (34%) as the biggest limiting factors in the most recent Gaming Executive Panel.

Current Conditions Index
The Current Conditions Index of 102.8 for Q1 indicates solid annualized real economic growth in the industry of 2.8%. This includes gaming revenue, employment and employee wages and salaries. Notably, the Current Conditions Index shows gaming expanding faster than the overall U.S. economy which last week reported 1.6 percent GDP growth in Q1 2024.

Future Conditions Index

The Future Conditions Index stands at 102.2, indicating annualized industry economic activity, after controlling for underlying inflation, is expected to moderately increase over the next six months. This outlook reflects Oxford Economics’ forecast that the U.S. economy will slow during 2024 but avoid recession. Despite a projected economic slowdown, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.

About the Outlook

The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q1 2024 survey was conducted between March 28 – April 10, 2024. A total of 32 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.

Compliance Updates

Arizona Department of Gaming Releases February Sports Betting Figures

Published

1 day ago

April 30, 2024

Peter Tolan

PHOENIX – Bettors in Arizona wagered approximately $637.5 million on sports in February of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 4.6% increase when compared to February of 2023.

The state collected approximately $2.8 million in privilege fees in the month. You can view the full February report on the ADG website: LINK.

Lottery

New Hampshire Lottery Joins Mega Money Jackpots

Published

1 day ago

April 30, 2024

Peter Tolan

Follows multi-state eInstant record jackpot award of $5.8 million

Instant Win Gaming (IWG), a leading supplier of eInstant games to NASPL and WLA-member lotteries, congratulates the New Hampshire Lottery on joining the Company’s multi-state eInstant progressive, Mega Money Jackpots.

The New Hampshire Lottery launched Jackpot Spectacular, its first game in the Mega Money Jackpots linked progressive pool, for players in the Granite State on April 24th. New Hampshire joins Pennsylvania and Virginia in offering Mega Money Jackpots linked games.

Additionally, IWG congratulates the Virginia Lottery along with its Mega Money Jackpots player who won a record-setting $5.8 million prize. The win sets another new U.S. iLottery record for the largest eInstant prize.

Mega Money Jackpots launched in July 2023, and over the past nine months the game has created eight millionaires. Since launch, more than 240 players across the participating lotteries have won Mega and Minor jackpots totaling more than $20 million.

The amount and frequency of these prizes showcases the excitement of IWG’s Mega Money Jackpots. To achieve this, select eInstants from participating lotteries each contribute a small percentage of the sales to fund the two progressive prize tiers, with IWG administering the settlement of jackpot prize monies on a turnkey basis.

The multi-state eInstant progressive jackpot is powered by IWG’s InstantJackpots. Since all functionality is contained within IWG’s InstantRGS (remote game server), no development support is required by a lottery’s iLottery platform provider. Additionally, new lotteries can join the system regardless of their iLottery platform provider.

Charlie McIntyre, Executive Director at New Hampshire Lottery, said: “Our industry has a proud track record of collaborating across state lotteries. We’re excited to join Mega Money Jackpots and to bring the excitement of it outsized prizes to our players. We know that our contribution will further enhance the game for everyone involved, and we look forward to creating some new millionaires here in New Hampshire.”

Rhydian Fisher, CEO at IWG, said: “Kudos to the team at New Hampshire Lottery. By joining Mega Money Jackpots, collectively we can award even more million dollar prizes to lottery players. Not only is the game frequently creating new millionaires, but it has also been a leading catalyst for new player signups. Fingers crossed that some new millionaires will be created in New Hampshire very soon.”