Michigan Revenue Shows Online Gaming Is Perfect Compliment to Retail Casinos
One of the biggest obstacles to U.S. states adding online gambling is the belief that it will detract from the overall revenue of retail spaces offering similar services.
But in the six states in America that offer both online gambling and retail casinos, it hasn’t proven true. In fact, looking at revenue numbers of two of the six, Michigan and New Jersey, shows that the addition of online casino gaming has broadened the appeal of the activity and multiplied profits.
Michigan approved online gambling with the signing of a gambling expansion package at the end of 2019. And since 2021, online casinos in Michigan have generated over $3.17 billion in revenue and produced $817 million in tax revenue. The three retail casinos in Detroit have seen a slight dip in overall revenue, but their first-quarter numbers for 2023 showed the strongest revenue since 2019.
Michigan also has a robust tribal casino industry, but they don’t need to report their full revenue numbers to state agencies. The only way to track how much revenue the 23 Michigan tribal casinos have produced is through their payouts to local groups. This figure is roughly two per cent and was over $30 million in 2022. Do the math and the estimate is that the overall revenue at tribal casinos was over $1.5 billion for 2022.
New Jersey approved online casino gambling in 2013 allowing players to play a slot machine from the comfort of their living room, or car, through an app or website available on a mobile device or computer. In 2012, the casino industry in New Jersey reported revenues of just over $3 billion. 10 years later, joint revenue was $5.2 billion.
There are many possible reasons for this. The biggest may be that clients who engage in online casino gambling are a different subset of the population than people who go to retail casino space.
The other big factor is the ease and reliability of the online platforms. Online casino players have the option to play any game of their choosing. There are hundreds, if not thousands of online slot machines, poker games, blackjack, and love dealer options. There’s no smoke in the air and there’s never any wait at the poker table or a slot machine.
