Revenue Numbers Remain Strong in Michigan as Bettors Graviate to DraftKings Over FanDuel in the State
Michigan’s monthly sports betting handle witnessed a slight dip compared to last year’s year-over-year total, according to the Michigan Gaming Control Board. In the Great Lake State, the football market is maturing, and the hype is not as strong as expected.
The Monthly Handle in September Has Declined Compared to Last Year
Sportsbook operators in Michigan registered a total monthly handle of $383.1 million. This jump noted a solid increase of 66 percent from August’s total of $229.8 million. Surprisingly, the year-over-year totals noted a slight decline of one percent.
The Detroit Lions are 1-4 to start the year; however, the Michigan Wolverines are 7-0. After starting the season ranked in the AP Top 25, the Michigan State Spartans are 3-4 to start the season.
Online bookmakers hit their quota for the most part, but the biggest discrepancy came from the retail locations across the state. Bettors that went to these brick-and-mortar locations wagered a lot less compared to last year. This September, bettors wagered $18.5 million compared to $32.5 million in September 2021.
A couple of the prominent markets that also noted a dip in their year-over-year numbers are New Jersey and Iowa. Even though the yearly total may have declined, revenue numbers remain strong as the results continue to fade the public.
The Revenue Numbers Continue to Push Strong Results
In spite of the fact that the handle isn’t increasing exponentially, the revenue numbers keep rising like clockwork. With promotions deductions down for the month, sportsbooks weren’t giving out free promotions as one would have expected.
Sportsbooks in the Great Lake State reported a win rate of 13.2 percent, which generated a gross revenue of 13.1 percent, which is two percent higher than August’s hold rate of 11.1 percent. Sportsbooks have posted three consecutive months of double-digit handles.
September 2021’s handle was higher, but the hold rate was nowhere near September 2022’s figure. Last September, the win rate was just seven percent which nearly matches the national average. Due to the solid results, the state was able to collect $2.6 million in taxes.
Bettors in Michigan Jump Ship to DraftKings
Since the launch began in January 2021, FanDuel has dominated the market in terms of market share. The same could be said about the rest of the industry. However, things have taken a turn in Michigan for the month of September.
In September, DraftKings became the state’s number-one option in regard to the handle for the first time in the state’s history. The mobile platform doubled its monthly handle of 52.5 million in August to $108.1 million in September.
Thanks to a strong football push, the platform was able to erase a nine percent deficit from a month ago to take the lead over rival FanDuel. DraftKings solidified a market share of more than 30 percent in September, while FanDuel went under the 25 percent threshold.
BetMGM was able to secure the third position with a handle of $74.8 million or 21 percent of the market share. No other mobile sportsbook that accepts bets in Michigan hit the 10 percent mark. Both Caesars and Barstool tied for fourth as they both brought in a handle of $22.3 million or six percent market share for the month.