Michigan Internet Casino Gaming and Online Sports Betting Operators Report a Combined $1.4 Billion Total Gross Receipts for 2021

According to a press release issued by the Michigan Gaming Control Board (MGCB), Michigan commercial and tribal internet casino gaming and online sports betting operators reported $1.4 billion in combined total gross internet gaming receipts and gross internet sports betting receipts in 2021. The breakdown in gross receipts is:

Internet casino gaming: $1.1 billion
Internet sports betting : $292.2 million

Combined 2021 total internet gaming and online sports betting adjusted gross receipts were $1.1 billion, including:

Internet casino gaming: $1 billion
Online sports betting: $110.6 million

Adjusted Gross Receipts include deductions for the monetary value of free play incentives provided to and wagered by bettors.

2021 total handle was $3.7 billion. The State of Michigan received $208.94 million in taxes and payments during 2021 including:

Internet gaming taxes and fees: $201.67 million
Online sports betting taxes and fees: $7.27 million

The three Detroit Casinos – MotorCity Casino, MGM Grand Detroit, and Greektown Casino – reported city wagering taxes and municipal service fees of $59.35 million for 2021 including:

Internet gaming taxes and fees: $55.28 million
Internet sports betting taxes and fees: $4.07 million

Tribal operators reported making total payments of $22.39 million of wagering payment to the tribes’ governing bodies during 2021, according to the MGCB.

December Results

For the month of December, combined total gross receipts and gross sports betting receipts reported by commercial and tribal operators was $156.52 million, which was a 3.2% decrease compared with November 2021 results.

Commercial and tribal operators reported a combined total $120.6 million in adjusted gross receipts and adjusted gross sports betting receipts during December.

Michigan commercial and tribal operators saw a Michigan monthly record $121.76 million in internet gaming gross receipts during December. The previous Michigan monthly internet gaming gross receipts record was $109.7 million set in October.

Internet gaming adjusted gross receipts were $109.7 million for December, up 13.9% from November results.

Commercial and tribal operators reported $34.76 million in gross sports betting receipts during December and adjusted gross sports betting receipts were $10.9 million.

December 2021 set a new total handle monthly record of $484.6 million, which was 2.3% higher than the previous record of $473.8 million set in November 2021.

December Taxes and Payments

The operators delivered $23.3 million in taxes and payments to the State of Michigan for December, with internet gaming contributing $22.6 million and internet sports betting contributing $738,067 in taxes and payments.

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 on adjusted gross receipts to the State of Michigan.

The three Detroit Casinos – MotorCity Casino, MGM Grand Detroit, and Greektown Casino – reported city wagering taxes and municipal service fees of $6.26 million in December including:

Internet gaming taxes and fees: $5.9 million
Internet sports betting taxes and fees: $364,448

Tribal operators reported making total payments of $2.6 million of wagering payment to the tribes’ governing bodies according to the MGCB in December.

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

During November, 14 operators were authorized for one or both forms of online wagering. Details for each operator’s internet gaming and internet sports betting results are available in tables published on the MGCB website.

AGEM Announces New Officers

On January 12, 2022, the Association of Gaming Equipment Manufacturers (AGEM), a non-profit international technology trade association representing manufacturers and suppliers of gaming equipment, announced the results of its Board of Directors’ elections. According to a press release, current AGEM President David Lucchese, in the second year of his two-year term, oversaw the elections of the new officers.

Four new Vice Presidents were elected to serve for one-year terms:

Ryan Comstock – Chief Operating Officer of Ainsworth Game Technologies
Elaine Hodgson – President and CEO of Incredible Technologies
Luke Orchard – Senior Vice President, Chief Compliance & Risk Management Officer of International Game Technology (IGT)
Robert “Bob” Parente – Executive Vice President and Chief Revenue Officer for Gaming at Scientific Games

Thomas Jingoli, Executive Vice President and Chief Operating Officer of Konami Gaming, will serve as AGEM’s Secretary for a one-year term.

Hector Fernandez, President of Aristocrat’s Americas and Europe teams, will serve as AGEM’s Treasurer for a one-year term.

Indiana House Introduces Two New iGaming Bills

Seeking to expand upon the success of the internet sports betting (iSports) marketplace in the State, the Indiana House of Representatives has introduced two bills that permit riverboat casinos and racinos to conduct internet gaming (iGaming). The new bills come after a proposed Senate bill to permit iGaming failed to pass the General Assembly in January 2021.

House Bill 1337, sponsored by House Republican Alan Morrison, would permit riverboat casino licensees, operators of riverboats in historic hotel districts, and racino permittees to conduct iGaming. The bill provides for the licensure of persons providing services and equipment for the management of iGaming. In addition to establishing a revenue share arrangement between iGaming operators and the cities and counties in which the casinos are operated, HB 1337 imposes an 18% tax on adjusted gross receipts of iGaming. This bill also repeals the historic district community support fee imposed upon casinos and racinos in the State.

House Bill 1356, authored by Representatives Doug Gutwein and Ethan Manning, would also permit riverboat casino licensees, operators of riverboats in historic hotel districts, and racino permittees to conduct iGaming. The bill also proposes licensing procedures for those persons providing services and equipment for the conduct of iGaming. This latter bill also sets an 18% tax on iGaming receipts and establishes revenue sharing with the cities and counties within which casinos are operated. HB 1356 does not include a provision to repeal Indiana’s historic district community support fee.

With iSports revenue pushing sports betting revenue to nearly record levels in December 2021 in Indiana, these new bills represent the Indiana Legislature’s renewed push to cease the revenue opportunity of iGaming.