Michigan iGaming and Sports Betting Operators Report a Combined $1.98 Billion Total Gross Receipts During 2022

According to the Michigan Gaming Control Board (“MGCB”) Michigan commercial and tribal internet casino gaming and internet sports betting operators reported a combined $1.98 billion total gross receipts in 2022. Gross receipts rose 41% compared with $1.4 billion in receipts for 2021. Internet casino gaming generated $1.58 billion and internet sports betting produced $399.58 million in gross receipts.

Combined 2022 adjusted internet gaming and internet sports betting adjusted gross receipts were $1.65 billion, 47.8% higher than 2021. The 2022 results included $1.43 billion from adjusted gross internet gaming receipts and $219.58 million from adjusted gross sports betting receipts. Adjusted gross receipts include deductions for the monetary value of free play incentives provided to and waged by bettors.

Total handle for the year was $4.6 billion compared with $3.7 billion recorded in 2021.

The commercial and tribal operators made $302.98 million in taxes and payments to the State of Michigan during 2022 including:

Internet gaming state taxes and payments – $289.24 million
Internet sports betting state taxes and payments – $13.74 million

The three Detroit commercial operators reported paying the City of Detroit $84.57 million in wagering taxes and municipal services fees during 2022 including:

Internet gaming taxes and payments – $77.83 million
Internet sports betting taxes and payments – $6.74 million

Tribal operators reported making $32.83 million in payments to tribal governing bodies.

December 2022 results

During December, commercial and tribal operators reported $201.6 million in combined total gross internet gaming and internet sports betting receipts, which was an 8.2% increase from November results of $186.27 million.

Commercial and tribal operators reported combined $168.23 million total adjusted gross internet gaming receipts and adjusted gross sports betting receipts in December 2022. In December 2021, the combined total adjusted gross receipts were $120.6 million for a nearly 40% year-over-year increase.

During December, internet gaming gross receipts set a Michigan record of $152.8 million, exceeding by 5% the previous monthly record of $145.43 million reported in November 2022.

Internet gaming adjusted gross receipts in December were $137.47 million compared with $130.9 million reported in November 2022. Monthly internet gaming adjusted gross receipts jumped 25.3% from the $109.7 million in internet gaming adjusted gross receipts recorded in December 2021.

Commercial and tribal operators reported combined total $30.76 million in internet sports betting adjusted gross receipts for a 19.9% increase from $25.66 million reported in November. Compared with December 2021 results of $10.9 million, internet sports betting adjusted gross receipts rose by $19.8 million or 182%.

Total handle at $478.7 million declined a fractional 0.3% from the $480 million total handle reported in November 2022.

December Taxes and Payments

The operators delivered $30.4 million in taxes and payments to the State of Michigan in December including:

Internet gaming taxes and payments – $28.5 million
Internet sports betting taxes and payments – $1.9 million

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 Detroit casinos reported City of Detroit wagering taxes and municipal services fee payments of $8.4 million in December including:

Internet gaming taxes and fees – $7.6 million
Internet sports betting taxes and fees – $807,717

Tribal operators reported paying $3.3 million to governing bodies in December.

An online gaming and sports betting revenue distribution table is available on the agency’s website.

During November, a total of 14 operators offered internet gaming as one tribal operator ceased offering internet gaming during 2022. A total of 15 commercial and tribal operators offered internet sports betting. Details for each operator’s internet gaming and internet sports betting results are available on the MGCB website.

State School Aid Fund

The remaining fund balances of the internet gaming and internet sports betting funds are transferred to the state’s School Aid Fund at fiscal year end. The state’s fiscal year runs from Oct. 1 to Sept. 30 of each year. The total transfer for fiscal year 2022 from each fund was:

Internet Gaming Fund – $251,786,296
Internet Sports Betting Fund – $8,071,687

NBA Joins AGA’s Responsible Gaming Campaign

The American Gaming Association (“AGA”) recently issued a press release announcing that the National Basketball Association (“NBA”) has joined its “Have A Game Plan. Bet Responsibly” public service campaign. The campaign focuses on education and the fundamentals of responsible sports wagering by providing resources for the NBA’s 30 teams, and will include public service announcements during games and restrictions on advertisements, among other things. The primary principles of the campaign are the following:

Set a budget and stick to it.
Keep it social—sports betting is a form of entertainment for adults.
Know the odds.
Play with legal, regulated operators.

“Responsible gaming is an integral component of the NBA’s approach to legal sports betting,” said Scott Kaufman-Ross, NBA Senior Vice President, Head of Gaming & New Business Ventures. “Working with the AGA on this initiative is an important part of our multifaceted approach to this critical topic and will provide our teams with tools to make a true impact on responsible gaming education in NBA markets across the U.S. and Canada.”

AGA Senior Vice President Casey Clark noted: “As one of the world’s most popular leagues, the NBA will bring Have A Game Plan’s important message to a massive audience. It’s critical that the entire sports betting ecosystem is united in our commitment to responsible gaming, and we are grateful for the NBA’s leadership in these efforts.”

AGEM Appoints Officers

The Association of Gaming Equipment Manufacturers (“AGEM”) announced earlier this month the election of a new slate of officers. Robert “Bob” Parente, executive vice president and chief business development officer for Light & Wonder will lead AGEM as President starting on February 1, 2023. He replaces past President David Lucchese, who is completing his two-year term.

In addition to Mr. Parente’s election for a two-year term, the following officers were elected to one-year terms, all commencing on February 1, 2023:

AGEM Vice President Elaine Hodgson (President / CEO – Incredible Technologies)
AGEM Vice President Luke Orchard (Senior Vice President, Chief Compliance & Risk Management Officer – IGT)
AGEM Vice President David Lucchese (Executive Vice President of Sales, Marketing & Digital – Everi)
AGEM Vice President Tom O’Brien (President, Americas & EMEA – Aristocrat Gaming)
AGEM Secretary Thomas Jingoli (Executive Vice President, Chief Operating Officer – Konami Gaming)
AGEM Treasurer Ryan Comstock (Chief Operating Officer – Ainsworth Game Technology)

AGEM is a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, lotteries, systems, table games, key components and support products and services for the gaming industry. AGEM works to further the interests of gaming equipment suppliers throughout the world. Through political action, regulatory influence, trade show partnerships, educational alliances, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization.

Pro Poker Player Joshua Thatcher Sentenced for Running an Illegal Gambling Operation 906 Poker Social in Marquette

According to a press release issued by the Michigan Gaming Control Board (“MGCB”) a pro poker player Joshua T. Thatcher, 42, of Gwinn Michigan, was sentenced January 19 to 12 months of probation after pleading guilty on December 2nd to one felony count of Gambling Operations for his role operating an illegal poker room known as 906 Poker Social formerly located at 1200 S. Front St, Marquette.

As part of his plea agreement, Thatcher agreed to forfeit to the State of Michigan all items seized from the location, including six poker tables and $13,050 in cash as well as other money held in bank accounts connected to the investigation of 906 Poker Social.

“Unregulated gambling operations do not offer Michigan residents the same protections provided through legal, regulated gambling. The Michigan Gaming Control Board’s mission is to ensure fair and honest gaming in Michigan, and we partner with the Michigan Department of Attorney General to investigate and eliminate illegal gaming activities across the state,” MGCB’s executive director Henry Williams stated.

Michigan Attorney General Dana Nessel said “My office remains committed to upholding business rules and regulations, and that includes our state’s gambling laws. I appreciate the work the Michigan Gaming Control Board has done to protect Michigan residents and businesses.”

Four Winds South Bend Announces Grand Opening of New Hotel

Earlier this week, the Pokagon Band of Potawatomi Indians, owners and operators of the Four Winds South Bend Casino, announced that the grand opening for their new 23-story hotel will be March 1, 2023. The hotel includes 317 rooms, of which 83 are suites, as well as a spa, conference and event center, and the Edgewater Café restaurant. The Ribbon Town Conference and Event Center is a multiuse facility with 16 meeting rooms, ballroom seating for 800, two bar areas, a business center and outdoor space. It can also be configured to host concerts and live performances. The first live performance will feature country music performer Parmalee on Saturday, March 18 at 8:00 p.m.

Rebecca Richards, Tribal Chairwoman, stated: “March 1 will mark the culmination of a nearly two and a half year-journey to realize our vision to expand Four Winds South Bend. We have so many people to thank that helped make this dream a reality including Frank Freedman and our casino operations team, our project manager, our general contractors, construction workers and vendors. We can’t wait for our Pokagon Citizens, as well as every guest, to experience the new facility.”

Frank Freedman, Chief Operating Officer of Four Winds Casino, added: “We are thrilled about welcoming guests to visit our new hotel, restaurant, conference and event center, and spa at Four Winds South Bend. The anticipation has been building as we’ve been focused on completing the interior features and finishes. From the design, use of materials and attention to detail, Four Winds South Bend offers a premium feel you’ll find at top resorts. A sincere thank you to everyone that had a hand in the successful completion of the project. Whether you’re visiting for entertainment or business, we look forward to welcoming you to enjoy a first-class experience.”