First month of internet gaming and sports betting receipts near $90M

State reports almost $302M was wagered during that timeframe.
222
Internet gaming and sports betting have been legal in Michigan since the end of January. Courtesy Grand Traverse Resort & Casinos

Michigan’s internet gaming and sports betting operators reported $89.2 million in gross receipts for February, their first full month of operation.

Their internet gaming gross receipts totaled $79.7 million and internet sports betting operators received $9.5 million in total gross sports betting receipts and reported a total handle of $301.9 million during that period, according to the Michigan Gaming Control Board.

“Michigan residents and visitors continued to show strong interest in internet gaming and sports betting during a snowy and cold February,” said Richard S. Kalm, Michigan Gaming Control Board executive director. “The internet gaming taxes more than tripled, but that’s what we expected with a full month of gaming. This means more funding for the city of Detroit, K-12 education, economic development and tribal communities.”

Most internet gaming operators began their operations on Jan. 22, including MGM Grand Detroit, MotorCity Casino, Bay Mills Indian Community, Grand Traverse Band of Ottawa and Chippewa Indians, Hannahville Indian Community, Keweenaw Bay Indian Community, Little River Band of Ottawa Indians and the Sault Ste. Marie Tribe of Chippewa Indians.

The Little Traverse Bay Bands of Odawa Indians began its internet gaming operation on Jan. 29, Greektown Casino started on Feb. 1 and the Pokagon Band of Potawatomi Indians started on Feb 15. 

The three operators that brought in the highest internet gaming gross receipts in January were MGM Grand Detroit, $11,075,980.37; Bay Mills Indian Community, $6,922,607.06; and MotorCity Casino, $6,633,734.86.

The top three internet gaming gross receipts in February were from MGM Grand Detroit, $26,912,267.71; MotorCity Casino, $16,574,979.13; and Bay Mills Indian Community, $14,467,033.05

MGM Grand Detroit, MotorCity Casino, Greektown Casino, Bay Mills Indian Community, Grand Traverse Band of Ottawa and Chippewa Indians, Hannahville Indian Community, Keweenaw Bay Indian Community, Lac Vieux Desert Band of Lake Superior Chippewa Indians, Little River Band of Ottawa Indians and Sault Ste. Marine Tribe of Chippewa Indians began their internet sports betting operation on Jan. 22. 

The Little Traverse Bay Bands of Odawa Indians began its internet sports betting operation on Jan. 29 and Pokagon Band of Potawatomi Indians began its operation on Feb. 15.

The operators with the largest gross sports betting receipts in January were MGM Grand Detroit, $5,096,934.43; Bay Mills Indian Community, $3,377,189.27; and Greektown Casino, $3,330,772.36.

The top three operators with the largest gross sports betting receipts in February were MGM Grand Detroit, $5,317,545.75; Greektown Casino, $1,894,529.33; and Lac Vieux Desert Band of Lake Superior Chippewa Indians, $1,105,629.36.

Some operators had negative gross sports betting receipts in February, including Bay Mills Indian Community, -$161,495.79; MotorCity Casino, -$78,888.64; and Hannahville Indian Community; -$18,097.71.

The operators reported $14.1 million in taxes and payments to the state for February. The internet gaming taxes/payments were $14 million, and the internet sports betting taxes/payments were $142,240.

For internet gaming, the state receives 70% of the total tax from the commercial operators and 80% of the total payment from tribal operators. The tax and payment rate ranges from 20% to 28% based on yearly adjusted gross receipts.

For internet sports betting, commercial operators pay 70% of the 8.4% tax to the state and 30% to the city of Detroit. Tribal operators make an 8.4% payment to the state on adjusted gross sports betting receipts.

The three internet gaming operators that paid the most state taxes and made state payments in January were MGM Grand Detroit, $1,707,868.20; Bay Mills Indian Community, $1,032,542.27; and MotorCity Casino, $863,435.65.

The internet gaming operators that paid the most state taxes and made state payments in February included MGM Grand Detroit, $5,261,868.20; Bay Mills Indian Community, $2,892,794.53; and MotorCity Casino, $2,754,581.49.

The internet sports betting operators that did not pay any state taxes or any state payment in January included MGM Grand Detroit, MotorCity Casino, Bay Mills Indian Community, Hannahville Indian Community, Lac Vieux Desert Band of Lake Superior Chippewa Indians, Little River Band of Ottawa Indians.

They all had negative adjusted gross internet sports betting receipts in January: MGM Grand Detroit, -$53,434.75; MotorCity Casino, -$5,679,061.41; Bay Mills Indian Community, -$1,186,886.61; Hannahville Indian Community, -$8,244.09; Lac Vieux Desert Band of Lake Superior Chippewa Indians, -$34,609.75; and Little River Band of Ottawa Indians, -$93,561.93.

The internet sport betting operators that did not pay any state taxes or any state payment in February were MotorCity Casino, Greektown Casino, Bay Mills Indian Community, Hannahville Indian Community, Keweenaw Bay Indian Community, Lac Vieux Desert Band of Lake Superior Chippewa Indians, Little River Band of Ottawa Indians, Little Traverse Bay Bands of Odawa Indians, Pokagon Band of Potawatomi Indians and Sault Ste. Marine Tribe of Chippewa Indians.

They all had negative adjusted gross internet sports betting receipts in February: MotorCity Casino, -$5,399,478.75; Greektown Casino, -$1,302,825.44; Bay Mills Indian Community, -$5,077,960.55; Hannahville Indian Community, -$277,365.94; Keweenaw Bay Indian Community, -$11,642.86; Lac Vieux Desert Band of Lake Superior Chippewa Indians, -$532,004.17; Little River Band of Ottawa Indians, -$444,032.27; Little Traverse Bay Bands of Odawa Indians, -$126,779.15; Pokagon Band of Potawatomi Indians, -$4,859.94 and Sault Ste. Marine Tribe of Chippewa Indians, -$63,169.51.

Grand Traverse Band of Ottawa and Chippewa Indians was the only operator to make payments to the state in January and February because its adjusted gross sports betting receipts were positive — $51,202.52 and $16,651.32 for January and February, respectively. They paid $4,301.01 to the state in January and $1,398.71 in February.

Their internet gaming and internet sports betting platform is operated by William Hill US, a gaming and betting company. 

“We are very proud that we are having a very positive impact in the first couple of months in the state,” said Ken Fuchs, president of digital for William Hill US. “We are the only operator to do that and that means we are paying taxes and contributing back to the state. Michigan is a great state for sports betting. It is a big sports state. It has amazing local, college, pro teams with a lot of history and tradition. The fans are really engaged with their teams. They know their sports.”

Facebook Comments