The Michigan Gaming Control Board (MGCB) has reported that the month of August has been great for gambling operators in the state. Both tribal and commercial betting operators posted impressive revenue judging from the public reports. According to the state’s gambling regulator, the total gross revenue that was achieved from internet sports betting and internet gaming hit $154.9 million in August.
When the same sectors are tracked back to the previous month of July, it is obvious that there has been some positive growth. The receipts were $148.2 million, which is an increase of 4.5%. Although some people would argue that this difference is quite small, this change is indicative of a stable business environment.
From the year-over-year comparison, the casino operators in Michigan reported that they had collectively managed to raise $113.1 million in gross internet gaming and sports betting receipts. The increase reported from comparing this year’s August performance to the same month last year reveals that there has been a close to 37% increase of revenue.
What we cover
Sports Betting Revenue Increase
From the financial data collected by MGCB, the figure of $154.9 million that is the focus of stakeholders in the market is the sum of revenue collected from sports betting and internet gaming; $130.9 million in favor of internet gaming and $24 million in favor of sports betting. The best performing sector was sports betting which managed an 11% increase, when compared July in the current year.
The regulator has revealed that receipts gained from combining the revenue from adjusted internet gaming and sports betting for last month was found to be $133.6 million. Out of this sum, $16.1 million resulted from internet sports betting receipts while $117.5 million was from internet gaming receipts.
In the past month, it was established that the total internet sports betting handle hit $218.8 million. When this is compared to the betting handle of $206.1 million, which had been reported a month before, an increase of 6.2% is realized.
Taxes Contributions from Commercial and Tribal Operators
The good performance of casinos operating in the Michigan market is of direct benefit to the state government in the form of taxes. In august, it was reported that taxes by Michigan internet gaming providers was a cumulative figure of $24.3 million. On the other hand, the taxes that were paid by internet sports betting operators totaled up to $989,621 for the same period.
The good performance of a casino is felt by many institutions and players across the economy. The first group of beneficiaries is obviously the employees that make the action to take place – these are the people whose job revolves around making sure that players are comfortable during play. For the month of August, it was reported that the tribal operators had paid out a total of $2.9 million in payments to relevant state bodies.
At the same time, the three Detroit casinos to the City of Detroit have been reported to have coughed up $6.7 million in wagering taxes and municipal fees for the month of August. Conserving these additional numbers, the total breaks down to $6.3 million for internet taxes and fees, as well as $360,923 for internet sports betting taxes and fees.
Profitability of the gambling industry
The third place ranking of Illinois in the country is a result of hard work from stakeholders. Casinos and other gambling services providers such as bingo halls, breweries, and taverns have for the last two years been struggling to stay afloat due to the effects of the pandemic. Since the pandemic meant that people could not gather to play or watch sports events, the gambling sector suffered a huge setback in execution of its mandate. People who preferred online gaming or discovered it at the time of the pandemic have continued to benefit from the growth of its popularity. For many people who had been used to having an active life outside their homes, the new norm of staying indoors was unbearable – until they discovered gambling websites.
It was at this time when everybody felt tied up that casino operators begun picking up a trend; the number of new accounts being created on betting platforms was at an all-time high. With people taking to the internet to connect to their favorite casino games and interact with other bettors, there was an obvious shift in the dynamics of the gambling sector.
Did you know that about 50% of the world population engages in some form of betting on an annual basis? This means that gambling enthusiasm cuts across culture and geographical regions. So as to entice their customers, online betting operators are offering services coupled with multiplayer services and wonderful features.
Current Online Gambling Innovations
It is public knowledge that the gambling industry is one of the most profitable ventures for any ambitious investor. With this in mind, the number of entrepreneurs looking to benefit from it is bound to increase relative to previous years. With the scare of the pandemic having blown over, stakeholders should prepare for a new wave of first time investors. Some of the new developments to look out for in the future include;
VR – Virtual Reality is an exciting feature of online casinos that will propel the growth of the industry forward. People will be hooked on it for the engaging and realistic game play. At a time when hacking is quite prevalent, most casinos are leveraging blockchain technology to safeguard their players from internet predators.
AI – Artificial Intelligence allows bettors to customize their experience on gaming sites. The technology evaluates what players choose and then suggests products and offers based on their preferences. Technologists believe that AI will root out crooks and fraudsters.
Mobile Gaming – since the smartphone revolution has taken up the ICT industry, it is important for online gaming platforms to use this technology to their advantage. As the mobile phone capability continues to increase, online gaming operators will introduce games that offer high quality user experiences.
Conclusion
The casino industry is gradually evolving and investors are reaping from sectors that had not been invented a few years ago.
