EKG Report Reveals That Michigan Online Casinos Boosted Land-Based Operators Revenue by 4.89%

Author Image Article By Larry Henry GDC - Icon - Black - Info
Date IconLast Updated: 
Share On Your Network
EKG Report Reveals That Michigan Online Casinos Boosted Land-Based Operators Revenue by 4.89%

The longstanding perception that online casinos are undermining brick-and-mortar casinos is thrown into doubt after Eilers & Krejcik Gaming (EKG), a research and analytics company, published its comprehensive report titled Comparing Online and Land-based Casino Gaming. The study assessed the impact of casino sites on land-based operators' revenue.

The report revealed that online operators have boosted the performance of land-based casinos, with an average 1.7% annual increase to a state's land-based revenue. The Great Lakes State's brick-and-mortar casinos experienced one of the biggest jumps at 4.89% GGR since the introduction of Michigan online casinos.

As part of the project, EKG also examined the methodology and results of previous studies on this subject, conducted by Deutsche Bank and The Innovation Group, which concluded that casino sites negatively affect land-based operators. According to the EKG research team, the studies mentioned above did not include a variety of factors and arbitrarily compared performance, resulting in a methodological approach with limitations, preventing precise modeling.

Comprehensive Market Research 

The EKG research effort Comparing Online and Land-based Casino Gaming was commissioned by the Development and Economic Association (iDEA), and the Eilers & Krejcik Gaming team, composed of industry experts, economists, and analysts, took a close look at data for six US markets with legal online gambling, including the Wolverine State. 

The methodology includes an in-depth analysis of data spanning 16 years and collected for each state's regulatory agency and operators. EKG specifically compared compound quarterly growth rates of brick-and-mortar casinos before and after the arrival of casino sites in the given state. 

The findings from the report showed that the introduction of online casinos positively influenced land-based operators' revenue streams, with an average quarterly revenue increase of +2.44% across all six markets. 

Pennsylvania's land-based operators have experienced the smallest rise in land-based GGR after the launch of online casinos. The report highlighted a 0.14% increase in Pennsylvania, while Connecticut experienced a 0.34% improvement. For New Jersey, the measured boost is 1.28%, and Delaware benefited with a 1.94% jump. West Virginia has a 6.02% GGR post-online casinos.

Michigan's Dynamic iGaming Market

Online casinos became legal in the Wolverine State in 2021. There are currently 15 licensed operators, which generated a total revenue of $1.9 billion in 2023. The list of operators includes nationally established brands such as DraftKings, BetMGM, FanDuel, BetRivers, Caesars Palace, and PokerStars, each offering immersive game libraries sourced for renowned software vendors and in-house games, plus a competitive repertoire of Michigan online casino no deposit bonus deals.

The EKG study also examined the composition of the player base between land-based and online casinos by examining data from Golden Nugget Online. Online casino players are typically 40-45 years old, with 55% being men, while land-based casinos appeal to an older age group, with an average player age of 50-55 years old. Women are more active, with 51%. Online customers play shorter sessions but wager with a broader stake level than land-based players.

Updated by GDC - Icon - Black - Info

Larry Henry

Last Updated Icon

Last Updated:  

Facebook Icon Twitter Icon Linkedin Icon Email Icon Copy Link Icon