May sports betting numbers for the US legal sports betting industry have been trickling in and the have revealed a mixed bag for the ever-expanding market. The latest jurisdiction to reveal their May sports betting figures is one of the newest Heavyweights on the scene, Michigan.
The Michigan Gaming Control Board on Tuesday revealed a slight dip in its May sports betting handle, the second straight month that the state has experienced a slight drop in sports betting activity. Michigan’s negative report comes on the heels of a pair of positive jurisdictional reports from Indiana and Iowa.
A Peek at the Numbers
Michigan, one of the newest top-tier betting scenes in the US market reported a $257.7 million sports betting handle in the month of May, a 6% drop from the $274.2 million in April. Further proof of the tangible summer slide is best demonstrated by looking at the state’s sports betting numbers from March when Michigan bettors spent a record $359.5 million with the state’s sportsbooks.
A revenue slide followed the dip in overall handle. Michigan sportsbooks made $11.7 million in May which represents a 5.6% month-over month drop from the $12.4 million reported in April. Analysts have identified a couple of factors that have contributed to the May betting slide. “The lack of success of the Detroit team has naturally lost interest, and Michigan faces too many short-term factors to completely overcome,” said Matt Schoch, an analyst at PlayMichigan.com. Jessica Welman, analyst for PlayMichigan.com commented that Michigan was “hit by the seasonality of sports betting and struggling local teams.”
More Figures
As per usual, Michigan’s mobile sports betting platform continued to dominate the state’s overall sports betting handle. Sports betting apps in the state were responsible for $237.6 million of the overall $257.7 million handle in Michigan, a slight 4.9% drop from April’s mobile take. Michigan’s retail sports betting sector contributed $20.2 million to the overall handle.
The Michigan Gaming Control Board May combined the state’s sportsbook revenues with those of the Michigan online casinos. Total gross receipts from Michigan’s online casinos when added up came in at $9.9 million – 9.2% less than the $10.9 million made by online casinos in April. $993,784 in state taxes came from online entities in Michigan during the 31-day period. Tax contributions from the state’s sportsbooks were reported to be $615,152 from the Michigan’s May sports betting profits, a nice 96.7% increase from April. City taxes for Detroit spiked 102.5% to $378,631.
Those Online Casinos Remain Steady
Online casino numbers, or iGaming remained pretty steady in May. The $94.9 million online casino handle is about the same as it was in April but is down just a touch from the $95.1 million iGaming took in during March. Online casinos have been a major contributor to the Michigan scene and should continue to be, according to analysts familiar with the platform. They will likely be leaned on heavily during the lean summer sports betting months.
“Online casinos are the driving force behind revenue generation,” says Jessica Wellman. “Even though retail casinos around Detroit have become more accessible, revenue remains high. In the future, the popularity of these games will be maintained and perhaps expanded over the next few months, even if retail casino operations remain stable.”
Looking Ahead
Michigan’s sports betting slump was expected and is under the circumstances acceptable. The fact remains that the Great Lakes State is still in the elite tier of legal sports betting jurisdictions. All eyes will be on September, when the bread-and-butter NFL season kicks off. “Despite the declines in betting volume, there aren’t any systemic issues. Even if the Lions’ prospects are equally dim, substantial growth will almost certainly return with the beginning of football season,” said Matt Schoch.
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