Michigan Reports Record iGaming Revenue for November, Highlights 2024 Impact

iGaming,-sports-betting-operators-report-$284.3M-in-November-revenue,-set-record-with-$650.2M-in-online-sports-betting-handle (1)Michigan’s gaming industry reached unprecedented heights in November 2024, with a record $284.3 million in combined internet gaming (iGaming) and sports betting gross receipts. This figure, reflecting a 12.1% increase from October, was announced by the Michigan Gaming Control Board (MGCB). The strong performance highlights the continued growth of Michigan’s regulated gaming sector.

iGaming gross receipts for November totaled $226.0 million, surpassing the previous high of $220.7 million recorded in October. Internet sports betting gross receipts also saw a significant jump to $58.3 million, compared to $33.0 million in the prior month. The total sports betting handle for November reached $650.2 million, the highest reported to date, reflecting a 16% increase over October.

Adjusted gross receipts (AGR) for November show the sector’s momentum, with $240.4 million reported across iGaming and sports betting activities. iGaming AGR rose to $203.3 million, marking a 2.4% month-over-month increase, while internet sports betting AGR climbed to $37.1 million, up $27.2 million from October. Compared to the same period last year, iGaming AGR grew by 28.9%, with internet sports betting receipts rising by $36.8 million.

Contributions to State and Local Economies

The gaming industry’s success continues to bolster Michigan’s economy. In November, operators paid $44.4 million in taxes and fees to the state, with $42.5 million stemming from iGaming and $1.9 million from internet sports betting. The three Detroit casinos contributed an additional $11.2 million to the City of Detroit in wagering taxes and municipal fees, with tribal operators making $5.2 million in payments to local governing bodies.

For the entire year, the MGCB reported over $501.4 million in contributions to Michigan’s School Aid Fund, supporting K-12 public education. Of this total, $388.5 million came from iGaming, $12.9 million from internet sports betting, and $100.5 million from casino wagering taxes. Other contributions included $4 million to the First Responder Presumed Coverage Fund and $3 million to the Compulsive Gambling Prevention Fund. The “Don’t Regret the Bet” responsible gaming campaign also received $3.75 million in funding.

Detroit’s casinos collectively paid $264.8 million in wagering taxes in 2024, adding to the $3.91 billion in total payments made to the city since 1999. Charitable gaming also thrived, with Millionaire Parties raising $5.35 million for Michigan charities from November 2023 to November 2024.

Enforcement and National Recognition

The MGCB reinforced its commitment to regulatory integrity by removing 206 illegal gambling machines in 2024 and issuing six cease-and-desist letters. These actions, supported by tips from Michigan residents, highlighted the agency’s proactive stance against illegal gaming operations. The MGCB’s efforts earned national recognition, including being the first regulator to secure compliance from Bovada through a cease-and-desist order.

MGCB Executive Director Henry Williams was named 2024 American Gambling Awards Regulator of the Year for his leadership. Reflecting on the year’s achievements, Williams said, “Our success this year reflects the dedication and hard work of our team, as well as the trust and collaboration of the communities we serve. We are committed to ensuring that Michigan’s gaming industry continues to thrive in a responsible and sustainable manner.”

Outlook for 2025

With a strong foundation of 15 authorized operators offering iGaming and 12 providing internet sports betting, Michigan’s gaming industry is well-positioned for sustained growth in 2025. The MGCB remains focused on ensuring regulatory compliance, supporting community initiatives, and maintaining Michigan’s status as a leader in the gaming sector.

Source:

”Michigan Gaming Control Board announces significant impact, revenue contributions to state funds in 2024”, michigan.gov, December 17, 2024.

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Macau’s November Gaming Tax Revenue Surges to $1 Billion

Macau-taxes-in-November-2024-Macau has solidified its position as a global leader in the gaming industry, reporting MOP$8.0 billion (US$999 million) in gaming tax revenue for November 2024. This figure, released by the Financial Services Bureau (DSF), represents a 6.4% increase from the same period last year and a significant 20.3% jump from October’s tax revenue.

This surge correlates with Macau’s October gross gaming revenue (GGR), which climbed to a post-pandemic record of MOP$20.8 billion (US$2.60 billion). This performance, driven by robust visitor numbers and record-breaking activity during the National Day Golden Week holiday, underpinned the government’s fiscal achievements.

From January to November 2024, Macau has collected a total of MOP$81.05 billion (US$10.1 billion) in gaming taxes, representing a 37.2% year-on-year increase. This total accounts for 96.9% of the government’s FY24 gaming tax estimate of MOP$83.6 billion (US$10.4 billion), positioning Macau to exceed its annual financial targets.

Overall government revenue during this period reached MOP$100.5 billion (US$12.5 billion), of which gaming taxes comprised a remarkable 80.6%.

Record-Breaking October Revenue Drives Fiscal Success

The tax achievements stem from a highly successful October, where Macau’s gaming operators generated MOP$20.8 billion (US$2.60 billion) in GGR. According to the Gaming Inspection and Coordination Bureau (DICJ), this represents a 6.6% year-on-year increase and a 20% rise from September’s MOP$17.3 billion (US$2.16 billion). The October figures also surpassed the previous post-pandemic high of MOP$20.2 billion (US$2.52 billion) recorded in May 2024.

The surge in revenue coincided with the National Day Golden Week holiday, which ran from October 1 to 7. Visitor numbers during the week reached 993,117, marking a 1.9% increase over 2019 figures. Hotel occupancy rates peaked at 98.5% on October 3 and 4, averaging 94.5% throughout the holiday period. Analysts have noted that market strength extended beyond Golden Week, prompting many to revise their revenue forecasts upward.

For the first 10 months of 2024, Macau’s GGR totaled MOP$190.1 billion (US$23.7 billion), reflecting a 28.1% growth compared to the same period in 2023. This sustained momentum highlights Macau’s ongoing recovery and resilience in the global gaming sector.

New Illegal Gaming Law Bolsters Regulatory Oversight

In parallel with its financial successes, Macau has taken significant steps to strengthen its gaming regulatory framework. The new Illegal Gaming Law, effective October 29, 2024, introduces strict penalties for unauthorized gambling activities, including “betting under the table” and illegal currency exchanges.

Key provisions of the law target side betting, a prevalent issue in Macau’s casinos, with offenders now facing up to eight years in prison. Individuals participating in any form of unlicensed gambling could face six months of imprisonment. The legislation also imposes severe penalties on those conducting illegal foreign currency exchanges within integrated resorts, with sentences of up to five years in prison.

To enhance enforcement, the Judiciary Police have been granted expanded investigatory powers, including the ability to conduct undercover operations and night-time searches. These measures address the nocturnal nature of gambling crimes, allowing for more effective intervention during peak activity hours.

The law also criminalizes illegal online gambling and unlicensed lotteries, ensuring that all gaming activities in Macau remain strictly regulated. Corporations engaged in unauthorized gambling can face fines of up to MOP$18 million (approximately US$2.25 million) and judicial dissolution, with company representatives held personally accountable if implicated.

Source:

“Macau government collects US$1 billion in gaming tax revenue in November”, asgam.com , December 12, 2024.

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Pennsylvania Leads U.S. in Casino Tax Revenue

Pennsylvania-Leads-U.S.-in-Casino-Tax-RevenuePennsylvania has outpaced all other states in collecting casino tax revenue, cementing its place as a leader in the U.S. gambling landscape. In 2023, the state’s tax revenue from casinos reached a record $2.3 billion, surpassing New York at $2 billion and far exceeding Nevada’s $1.2 billion.

The state owes much of this success to its tax structure, particularly its 52% tax rate on slot machine revenue, which dwarfs the 6-8% rates seen in Nevada. According to Doug Harbach, Communications Director of the Pennsylvania Gaming Control Board, this model significantly contributes to state coffers.

With a highly taxed and regulated system, Pennsylvania ensures its gambling industry supports public programs while generating substantial state revenue. In addition to traditional casino games, online casino platforms and sports betting continue to grow as critical revenue sources.

“Slots is taxed here at about 52% for the casinos,” Harbach explained.

Rapid Growth in iGaming and Sports Betting

Pennsylvania’s gaming market thrives not only in physical casinos but also in the rapidly growing online sector. Internet casino games like slots and blackjack are becoming increasingly popular, with national records for iGaming revenue being broken recently.

Sports betting, both online and in-person, has also seen robust growth. According to the Pennsylvania Council of Compulsive Gambling, $7.68 billion was wagered on sports in 2023. This segment has expanded largely due to the convenience of mobile apps, which allow users to bet from virtually anywhere.

However, professionals caution against overindulgence. Handicapper Raphael Esparza offered advice for responsible gambling: “Just because there’s a Monday Night Football game on TV, that does not mean you have to bet it.”

Despite its successes, the state’s gambling industry faces growing concerns about the accessibility and potential risks of gambling, as calls to 1-800-GAMBLER continue to rise.

Skill Game Ban Faces Legal Hurdles

While Pennsylvania benefits from its regulated gambling framework, the legal status of skill-based gaming machines remains contentious. The Commonwealth Court of Pennsylvania recently paused Philadelphia’s enforcement of a ban on these machines, pending an appeal to the state Supreme Court.

Skill games, often found in convenience stores, require players to complete simple tasks to win cash prizes. Critics argue they closely resemble slot machines and exploit loopholes to bypass gambling laws. Philadelphia’s City Council passed a ban on the machines in April, citing concerns over crime and their unregulated status.

However, proponents view these games as vital for small businesses. Mike Barley, spokesperson for Pace-O-Matic, a manufacturer of skill games, called the court’s decision “a victory for Philadelphia small businesses,” emphasizing the machines’ importance in generating supplemental income.

Governor Josh Shapiro has suggested regulating and taxing skill games at a 42% rate, similar to the state’s casino framework. Lawmakers are exploring ways to incorporate these machines into Pennsylvania’s regulated gambling industry while ensuring oversight and accountability.

As debates over skill games continue, Pennsylvania’s ability to balance industry growth with effective regulation will remain critical.

Source:

“Pennsylvania ranks first in casino taxes collected in US; professionals advise to gamble responsibly”, abc27.com, December 9, 2024.

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Macau Sees 58% Surge in Gaming Tax Revenue, Driven by Economic Recovery

Macaus-gaming-tax-income-jumps-58-YoY-between-Jan-JulyThe Macau government reported a significant increase in gaming tax revenue for the first seven months of 2024, highlighting the region’s strong economic rebound. The income from gaming taxes surged by nearly 58% year-on-year, reaching MOP51.6 billion ($6.4 billion) as the Special Administrative Region (SAR) continued its post-COVID recovery.

Macau’s Gaming Tax Revenue Boost

The increase in gaming taxes contributed to a 49.7% rise in overall government revenue, totaling MOP61.1 billion ($7.5 billion). This is the highest revenue figure recorded since the onset of the COVID-19 pandemic in 2020, signaling a robust recovery for Macau’s economy.

Gross gaming revenue (GGR) also experienced a significant jump, increasing by 36.7% year-on-year to MOP132.2 billion ($16.4 billion) between January and July 2024. The surge in GGR is attributed to the region’s thriving gaming sector, which continues to play a pivotal role in Macau’s economic resurgence.

Under Macau’s 10-year gaming concession system, which was implemented in January 2023, the effective tax rate on casino gross gaming revenue is set at 40%. This taxation model has proven beneficial for Macau, as it allowed the government to collect 60% of its projected 2024 revenue within the first seven months of the year. The region’s budget anticipates a total revenue of MOP102 billion ($12.7 billion) for 2024.

Increased Public Spending and Budget Surplus

Alongside the rise in revenue, public spending in Macau increased by 9.6% to MOP52.2 billion ($6.5 billion). However, infrastructure investment saw only a modest growth of 1.1%, totaling MOP9.69 billion ($1.2 billion). Current expenditure, on the other hand, rose significantly by 10.2% to MOP41.9 billion ($5.2 billion). This increase was driven primarily by an 11.7% rise insocial support and subsidies, as well as a 4.4% increase in civil servant expenses.

Despite the increase in spending, Macau’s 2024 budget predicts a return to surpluses in public accounts, marking a recovery after three years of economic challenges due to the pandemic. Between January and July 2024, Macau recorded a surplus of MOP9.27 billion ($1.2 billion), more than doubling the surplus from the same period in 2023.

The substantial rise in gaming tax revenue and the subsequent budget surplus show Macau’s resilient recovery and the vital role that the gaming industry continues to play in the region’s economy.

Source:

Macau’s Gaming Tax Income Jumps 58% YoY Between Jan-July.”, agbrief.com, 16 Aug. 2024.

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Belgium’s Gambling Revenue Grows by 16.7% in 2023 Despite Stricter Regulations

Belgium-reports-16.7_-rise-in-2023-GGR-despite-tighter-regulatory-controlsBelgium’s gambling market has shown remarkable resilience, with the Commission des Jeux de Hasard (CJH), the country’s gambling regulator, reporting a 16.7% increase in gross gaming revenue (GGR) for 2023. The total GGR for the year reached €1.7bn (£1.5bn/$1.9bn), a significant rise from €1.5bn in 2022, despite the Belgian government imposing tougher restrictions on the sector.

Growth in Online and Offline Markets

The surge in GGR was driven by robust performance across both online and offline gambling sectors. Online gambling GGR grew by 18% to €944.6m, demonstrating the increasing shift towards digital platforms. Meanwhile, offline gambling also saw substantial growth, with GGR reaching €758m, a 15.2% year-on-year increase.

This growth comes in the face of heightened regulations introduced by the Belgian government. Since 2022, operators have been required to enforce a weekly loss limit for players, which was reduced from €500 to €200. Further tightening occurred in mid-2023, when a ban on all gambling advertising came into effect on July 1, following an unsuccessful attempt by a consortium of Belgian sports teams and operators to overturn the decision.

Casino Sector Leads the Charge

Belgium’s casino sector was a standout performer in 2023, with GGR increasing by 18.7% to €594.9m. This growth was largely fueled by a 20.2% rise in online casino revenue, which reached €455m. Although brick-and-mortar casinos did not match the growth rate of their online counterparts, they still reported a 14.3% increase in GGR, totaling €139.9m.

Among the nine land-based casinos in Belgium, Grand Casino Brussels, operated by Casinos Austria International, led the market with an offline GGR of €52.5m. Circus Casino Resort Namur followed with €22.5m. However, Casino Blankenberge, acquired by Kindred Group in 2020, was the only venue to report a year-on-year decline in GGR.

Mixed Results for Slot Arcades and Sports Betting

Slot arcades also saw strong growth, with GGR rising by 17.3% to €437m. Online activity was a key driver, accounting for 57.7% of slot hall revenue and growing by 19.4% to €252m. In-person slot arcade GGR increased by 14.5% to €184.9m.

In contrast, the sports betting sector experienced more modest growth, with GGR increasing by 8.4% to €390m. Online sports betting remained dominant, contributing 60.9% of the sector’s total GGR and growing by 12.8% to €237.6m. Revenue from betting shops grew at a slower pace, rising by just 2.3% to €152.4m.

The CJH noted that ten of the 24 licensed operators were responsible for 96% of offline bets and 94% of online wagers, highlighting the concentration of the market. Despite there being 30 available licenses, only 24 were in use throughout the year.

Newsagents Hit Hard by New Regulations

The only sector to experience a significant decline was betting at newsagents. New restrictions imposed in 2022 limited betting hours to between 6 AM and 8 PM and capped annual stakes per newsagent at €250,000. These measures led to a 26.3% drop in GGR for newsagents, resulting in 21 refusals of license renewals, 82 licensees not seeking renewal, and 151 ceasing operations altogether. By the end of 2023, only 1,484 newsagents were still active, down from 1,580 at the end of 2022.

Ongoing Regulatory Changes

The Belgian government continues to implement new regulations aimed at tightening control over the gambling industry. From September 1, 2024, the legal gambling age in Belgium will increase from 18 to 21 years old. These changes have raised concerns about the potential impact on channelization towards legal markets, with Belgium-based operator Gaming1 warning in an April report that the ongoing regulatory shifts could drive more players to unregulated platforms.

Source:

Belgium reports 16.7% rise in 2023 GGR despite tighter regulatory controls, igamingbusiness.com, August 12, 2024. 

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