- Michigan sportsbooks won $55.5 million in September, but deductions cut $30.6 million before taxes.
- bet365 has taken $196.5 million in Michigan bets since its April launch but sits at negative $28.6 million in taxable revenue.
- The state collected $1.83 million from online sportsbooks compared to $60.6 million from online casinos.
DETROIT – Michigan sportsbooks won $55.5 million from bettors in September, but less than half of it was taxable. The Michigan Gaming Control Board’s September report shows online sportsbooks took $544.8 million in bets, up 3.9% from last year. After deductions, mostly promotional credits, just $24.9 million was left to tax.
That’s $30.6 million, or 55% of everything sportsbooks won, written off before the state got its cut.
Michigan sports betting operators pay 8.4% of adjusted gross receipts, which are calculated after free bets and other promotions are deducted. As a result, the state collected just $1.83 million from online sportsbooks in September, while Detroit received another $548,519.
Believe it or not, that’s an improvement. Last September, deductions swallowed 70% of gross receipts, wiping out $30.4 million of $43.6 million.
bet365 Pays To Play
No sportsbook shows the cost better than bet365. Since launching in April through the Little Traverse Bay Bands of Odawa Indians, bet365 has taken $196.5 million in Michigan bets and won $50.4 million from bettors. But the Board’s operator data shows its adjusted gross receipts sit at negative $28.6 million.
That’s roughly $79 million in deductions in six months, and bet365 has yet to pay Michigan a dollar in taxes.
The heaviest spending came early. In May, bet365 handled $66.8 million but posted negative $15.9 million in adjusted receipts. By August, its handle faded to $15.8 million before rebounding to $30.1 million in September, along with another negative month at -$1.3 million. Hard Rock Bet followed a similar playbook in September as $3.14 million in gross receipts became $230,979 after deductions, a 93% write-off.
Meanwhile, Michigan’s online casinos sent $60.6 million to the state in September, 33 times what sportsbooks paid.
