Michigan Online Casinos Up 39.8%, Regulator Kicks Out Offshore Operators

Online casinos in Michigan generated $247.2 million in August, up 39.8% year-on-year from $176.9 million, despite the number of igaming platforms in the state reducing from 15 to 14. 

In other news, the Michigan Gaming Control Board (MGCB) has renewed the licenses of three of Michigan's casinos: the MGM Grand Detroit, which operates BetMGM Casino, MotorCity Casino, which operates FanDuel Casino, and Hollywood Casino Greektown, which operates the Hollywood Casino. 

The control board has also been working to crackdown on unlicensed offshore operators in the state to ensure safe legal gambling for Michigan users. 

Double-Digit Wins and Losses for Michigan Online Casinos

The latest report from the MGCB shows that of the 14 operators in the state, only three experienced losses year-on-year. One casino, the SI Casino, recently ceased all iGaming operations in July, reducing the number of active casinos from 15 to 14. 

The highest revenue in the state was generated by FanDuel Casino, which saw a 53.6% rise year-on-year and generated $66.9 million in August. The second-highest revenue was generated by the BetMGM Casino, with revenue reaching $62.6 million, up 32.6% from the $47.2 million the year prior. 

Fanatics Casino experienced the highest year-on-year increase of 286.6%, with revenue increasing from $3.4 million to $12.4 million. Hollywood Casino came in second with an increase of 77.2%, and betPARX saw third place with a rise of 66.9%.

While many casinos experienced high increases, other casinos saw losses in the double digits. Four Winds Casino was the biggest loser in August, with revenue decreasing by $49.5% year-on-year, with revenues decreasing from $3.6 million to $1.8 million. 

The only other casinos to experience year-on-year losses were the PokerStars Casino and Eagle Casino, which saw decreases of 20.4% and 19.3% respectively. 

Tech Zone Inc. Ordered Out of Michigan

The MGCB has been working hard to remove offshore operators from the state this year, with Tech Zone Inc. being the most recent target. 

In an effort to safeguard Michigan players, the control board has issues four cease-and-desist letters this month to Betty Wins, Orbit Spins, Pacific Spins Casino and Yabby Casino, all operated by Tech Zone Inc.. 

“These offshore operators lure players with flashy ads and promises of big winnings, but in reality, they put consumers at serious financial and personal risk. We will continue to take strong action against unlicensed sites to ensure gambling in Michigan is legal, fair, and secure,” said Executive Director of the MGCB, Henry Williams. 

Only the fifteen regulated operators in the state are permitted to offer iGaming, and the four online offshore casinos break Michigan state law. If they do not immediately cease operation, the MGCB has warned that it will follow up with more aggressive measures. 

The “Play It Smart, Michigan” initiative operates a website with a ‘Legal vs. Illegal Gaming’ section to guide residents on which operators are licensed in the state, and provides guides on how to identify gambling sites that may be shady.