The US sports betting and casino gaming market continues to yield impressive results. We’ve already covered Indiana and Mississippi’s betting records for January, noting a growth of 11% and 20% in tax revenue, respectively. This time we’ll go through the cases of Michigan and Pennsylvania.
An excellent debut for Michigan
Michigan’s online sportsbooks and casinos have marked a great start of 2021, generating more than $115 million in sports bets in the second half of January.
The Michigan Gaming Control Board issued the latest sports betting and casino gaming report. According to it, operators and sportsbooks contributed $4.4 million in taxes and payments to Michigan’s state. Combined with the retail’s stats, it seems that Michigan had their best start compared to other states that offer both online and retail sportsbooks. In general, online casino and sports betting stand with an incredible 76% of the state’s handle.
Betting and iGaming analysts agree that online betting will account for 90% of the state’s total if this trend continues to grow. This would put Michigan in line with other US states that offer online and retail betting. As a reminder, Michigan had a quick launch debut last month with 10 online sportsbooks, including the nations’ largest Draftkings and Fanduel. Having these names along with competitors like BetMGM or BetRivers, made Michigan one of the most competitive US markets because of the vast choice for consumers.
On the other hand, online casinos made their contribution with $29 million in gross profit and yielded $4.3 in tax revenue. Sportsbooks may enjoy more attention, but online casinos are much more consistent regarding the revenue. Experts agree that Michigan is on the way to becoming one of the best-developed iGaming markets in the US.
Pennsylvania to deliver $6 billion in wagers at the end of the year
Pennsylvania has also issued their January revenue momentum regarding sportsbooks and casino operations, opening the year with more than $600 million in wagers. These stats topped the previous record set in December, which was set at $548 million.
With this tempo, Pennsylvania’s sportsbooks are on the way to deliver $6 billion in wagers, enabling the state to reach more than $800 million in tax revenue.
Analysts and experts say that stats are in favour of the casino and betting industry. If the state’s land-based casinos get back on track, they’d surely notice significant progress across the market. Even though the state’s tax structure is a bit different and was the cause of the industry’s slow progress, it appears that that’s not a challenge anymore.
For Pennsylvania, online betting produced 94% of January’s handle, contributing $220.7 million in bets. People closely related to the industry agree that the closure of land-based casinos and retail sportsbooks has undoubtedly been a challenge. This put online casino gaming on top of the list, which they believe will bring lots of benefits in the long run.