Online Gambling to Threaten Profits of Michigan Lottery
Michigan’s state revenues benefited from the legalization of online casino gaming and sports betting. The state’s gaming control board informed a Senate subcommittee that between January 22, 2021, and January 31, 2021, the state received gross receipts of $29.4 from online casino gambling and $13.3 from online sports betting. The fast growth in revenues is good news to online casino gambling in Michigan but the state’s Lottery feels it’s a threat to their revenues.
Why is there fear in Michigan Lottery?
Michigan Lottery is looking at the sudden boom received by Michigan online gambling within nine days, as reported by the Michigan Gaming Control Board. Because nine days is not a period long enough to measure the long-term impact of online gambling against the lottery, the figures given by the lottery bureau are only speculative. According to them, one dollar for every $6 received by online gambling will be poached from the lottery. In simple math, if online casinos collected $42 million, lottery lost $7 million.
Comparing online casino revenues versus lottery revenues in Michigan
Between 2020 and March 2021, online gambling revenues increased from $29 to $68 million and this was a 135 percent growth. Within the same period, the Lottery Bureau reported an increase from $582 million to $705 million, which was a record growth of 21 percent. Due to the increased growth, gamblers are looking forward to a positive stock market where they can gain even more.
Comparing the incomes in terms of volume, lottery seems to be doing very well compared to online gambling. Even though the citizens of Michigan welcomed online gambling, they continued to buy lottery tickets and online betting doesn’t seem to impact negatively on lottery tickets in any way.
Online gambling is another way to boost the economy
Looking at a nationwide scale, Biden’s economic plan will not come to reality if more Americans do not invest in diverse ways. If more Americans continue to invest, there will be more revenue collected and the public coffers will have more.
The launch of Michigan online gambling is a different way of investment that is giving residents of Michigan a new opportunity to earn money. The lottery is deep-rooted and continues to enjoy a large share of the market. Online gambling is an investment like any other, and clients will be free to choose between online gambling and lottery. At the same time, the lottery core players will continue to positively impact the market.