The Michigan Gaming Control Board reported iGaming and mobile sports betting revenue soared above $1.1 billion for the first half of 2023 which was an increase from the first six months of last year.
June Slowdown
It is routine for sports betting to slump in June no matter which state you analyze and Michigan sports betting is no exception to the rule. The NBA and NHL playoffs are over and the novelty of the MLB season is no longer enticing casual fans to make a wager on a ballgame. It is called the summer doldrums for a reason.
The commercial and tribal iGaming and mobile sports betting operators reported a combined $169.3 million in revenue, a 9% decrease from May but a 24% increase over June 2022, pushing total revenue for the first six months of this year to $1.13 billion.
Online gaming revenue, which includes virtual casino games and digital slots, was up ever so slightly from May, $151 million in June versus $150.6 million the month prior, but sports betting took a nosedive generating just $18.3 million in June compared to $35.6 million in May. In June, Michigan iGaming contributed significantly to the adjusted gross revenue (AGR) of $146.1 million, accounting for $136.9 million, while online sports betting only contributed $9.2 million.
However, when we compare the year-over-year numbers we see that iGaming in Michigan increased 25.1% while online sports betting spiked a whopping 83.9%. The state’s tax coffers collected $28.4 million via iGaming while online sports betting taxes and fees contributed just $545,632 for a combined $28.9 million to the Great Lakes State in June.
There are currently 15 online gaming and sports betting platforms operating in the state.
FanDuel Paces Slow Month
As stated, June is traditionally a sluggish sports betting month but industry titan, FanDuel, paced the field yet again but its revenue, like most of its Michigan competitors, fell drastically from May.
The combined sports betting handle in June was $236 million of which FanDuel generated $76 million in wagers leading to $9.8 million in revenue. DraftKings came in its familiar second place in the Michigan online sports betting scene with $65.4 million in accepted bets which produced only $2.1 million in revenue thanks to a narrow 3.2% win rate.
BetMGM took the bronze medal with $44.6 million in wagers contributing to $2.96 million in revenues. Caesars and Barstool rounded up the top five in Michigan’s June online sports betting market with $17.75 million and $13.77 million in accepted bets, respectively.
BetMGM showed $896,371 in revenues while Barstool generated $1.01 million in revenues despite a lower handle but a higher win rate.
Neighboring Ohio has begun to make a dent in the Michigan sports betting market since its launch at the beginning of this year. However, sportsbook revenues are $190.7 million through the first six months of this year which is a 14% year-over-year increase from the same time last year when $167.3 million was generated in H1 2022.
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