March Madness fueled growth in sports betting in Michigan as the online casino continued its rapid rise after surpassing $130 million in revenue for the first time.
Igaming entities in the region reached $131.7 million in March to break the previous record high of $122.8 million set a month earlier, marking the third time in four months that online casino revenue and poker rooms reach a new high.
On a daily basis, revenue reached $4.2 million throughout the month, down slightly from the record high of $4.4 million generated in February.
March revenue generated $33.1 million in state taxes and fees, with online casinos now having generated $368.9 million in taxes and fees since launching in 2021.
“Online casinos aren’t affected by the same seasonal ebb and flow as sports betting, so they should continue to generate huge revenue over the summer,” said Paul Costanzolead analyst for PlayMichigan.
“Michigan has been so successful in raising tax revenue from online casino gambling that it’s a wonder more states haven’t followed suit by legalizing and regulating it.”
Elsewhere, Michigan’s online sportsbook attracted $451.6 million in online bets in March, a 13.4% increase from $398.4 million in wagers accepted in February.
Factoring in the previously reported $26.4 million in retail wagers at Detroit-area casinos, online and retail sportsbooks combined to bring in $478 million in wagers for the month.
This represents a 12.8% increase from the $423.8 million produced a month earlier, but is a far cry from the record high of $523.7 million that was highlighted during a full January. to crack in the NFL.
Online sports betting earned $30.5m in gross revenue from March bets, up 35.4% from $22.5m in February, but down 5.6% compared to $32.3 million in March 2021.
Combined with $2 million in retail revenue, Michigan Sportsbook earned $32.4 million for the month. After promotional credits, retail and online sports betting generated $16.6 million in taxable revenue, or $967,314 in taxes.
“The seasonal decline in sports betting really begins after the first full weekend of March Madness, and this downturn is expected to continue until the start of football in September,” said Eric Ramsayanalyst for PlayUSA.
“While sports betting can continue to show annual growth of around 25% or more as the NBA and NHL playoffs, baseball and major championship golf take center stage over the next months, the industry should be in a fantastic position in the fall.
FanDuel led the online market with $140.1 million, up from $122.4 million in February. Combined with its retail sports betting, the group earned $14 million in gross revenue during the month.
“The race for market share has solidified, and it would take something big to knock the top players off their perch,” Ramsey added.
“FanDuel’s dominance, in particular, seems to be baked in. But the race for number two remains intriguing with BetMGM’s continued growth.”