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Michigan sports betting revenue reaches $4.4m in September

News

Revenue for Detroit’s three commercial casinos rose 26.8% month-on-month in September, with retail sports betting’s contribution hitting $4.4m in its first full month of activity.

The Michigan Gaming Control Board also released figures for the first full month of sports betting. While retail betting launched in the state on March 11, properties were forced to close just days later due to the state going into lockdown due to novel coronavirus (Covid-19), and not reopening until August 5.

Qualified adjusted gross receipts – gross receipts minus the monetary value of free play incentives provided to and wagered by players – amounted to $4.4m.

MGM Grand Detroit again led the vertical with $2.1m in adjusted gross receipts, followed by MotorCity on $1.6m and Greektown with $722,509.

The three casinos paid a total of $165,428 in retail sports betting taxes for the month, as well as $202,190 in retail sports betting taxes to the City of Detroit.

In addition, daily fantasy sports operators reported $2.3m in adjusted revenue for the month, paying $189,875 in taxes to the State of Michigan.

Turning to land-based gaming, combined slots and tale games revenue for the month reached $87.9m, which was up from $69.3m in August, when casinos reopened following a four-and-a-month period of closure caused by Covid-19.

However, the monthly total was 21.7% lower than last year, through the Detroit casinos are currently operating at 15% of their fire code capacity due to ongoing restrictions related to the Covid-19 pandemic.

MGM Grand Detroit led the market in September with 41% of the market share, but its revenue was down 22.3% year-on-year to $36.1m in revenue.

MotorCity held 37% of the Detroit market share, but also saw its revenue fall 17.3% to $32.2m, while revenue at Greektown was down 27.2% to $19.6m.

The three casinos paid $7.1m in taxes to the State of Michigan in September, as well as $10.5m in wagering taxes and development agreement payments to the City of Detroit.

In terms of performance in the third quarter – comprising the three months to September 30 – revenue stood at $157.3m, down 55.2% from last year, though casinos only reopened on August 5 and have been operating at reduced capacity ever since.

Publication of the monthly results comes after Scientific Games this week extended its software license agreement with the Michigan Lottery.

The lottery will continue to utilize Scientific Games’ Gem Intelligence solution and have access to all new software features and capabilities.