Michigan sportsbooks handle $259.4m in June
Online casino, poker room revenue drops to lowest levels since February.
Michigan’s online and retail sports betting operators saw $259.4m in combined handle in June, a slight increase from May despite one fewer day on the calendar.
According to official data released Monday by the Michigan Gaming Control Board, online sportsbooks in the Wolverine State accepted $235.1m in wagers in the 30 days of June, down 1.0% from $237.6m over the 31 days of May.
Retail books took in $24.4m in bets last month. The combined total was up 0.7% from $257.7m in May.
Analyst with PlayMichigan and the PlayUSA.com Network said April, May and June typically are three of the slowest sports betting months of the year. With that said, they noted no major US sports jurisdiction has experienced a steeper decline from March’s highs as has Michigan, where June’s combined handle was down 32.4% from the record $383.7m combined handle in March.
By comparison, Indiana’s sports betting volume dropped 22.2% from March to June, and Iowa is down 31.1%.
Michigan did see its first significant jump in taxable revenue, and its online casino industry remains a reliable revenue generator, according to Jessica Welman, analyst for the PlayUSA.com Network. She said the industry has much to look forward to when summer turns to fall.
“Michigan’s sportsbooks grew so quickly from January through March, the slowdown that has followed might feel more dramatic than the reality,”Welman said in a statement. “Sportsbooks remain in excellent position for a ramp-up when football season approaches. Until then, they will have to rely on opportunities such as the Olympics and the NBA Finals to stoke interest.”
Gross gaming revenue at online sportsbooks rose 28.2% to $24.9m in June from $19.5m in May. June’s online sports betting hold of 10.6% for operators was their best for any full month in Michigan.
After promotional credits, online sportsbooks produced $16.8m in taxable revenue, up from $9.9m. That yielded $1.4m in state and local taxes from online betting.
Matt Schoch, analyst for PlayMichigan.com, assessed, “We have been waiting for a bump in taxable revenue that led to a real increase in tax revenue, which we finally got in June. If there has been a disappointment with Michigan’s launch, it is that tax revenue gains have lagged. So hopefully, this will continue into the fall, when we know revenue from sports betting will make a big leap forward.”
FanDuel topped the online market in June with a $77.3m handle, up from $71.2m in May. That led to a market-best $10.3m in gross sports betting revenue, up from $9.3m. The operator produced $8.1m in taxable revenue.
DraftKings trailed with $56.5m in wagers, down from $66.7m in May. Gross gaming revenue rose to $5.0m from $1.9m in May. BetMGM followed closely with $52.1m in wagers, up from $51.6m in May. That produced $6.1m in gross receipts and $4.2m in taxable revenue.
Nine other online sportsbook operators reported handle ranging from $16.7m down to $914,393. FireKeepers entered the Michigan market with a soft launch in June that had just $656 in handle. The platform was released widely in July.
Schoch said FanDuel,“really opened up a significant market share lead, which will be difficult for any rival to overcome. WynnBet is taking on an aggressive marketing strategy, including a deal with the Detroit Lions announced last week. This could spark other smaller operators to take a more aggressive posture, too, which would ultimately be good for bettors.”
Online casinos and poker
Revenue from Michigan’s online casinos and poker rooms fell to their lowest level since February. In all, gross gaming revenue from online casinos and poker fell to $89.2m, down 5.9% from $94.9m in May.
Over the 30 days of June, online casinos and poker rooms produced $3.0m per day, down from $3.1m per day over the 31 days of May. That yielded $13.7m in state taxes and $5.0m in local taxes.
Since launching in January, Michigan’s online casinos and poker rooms have generated $483.1m in revenue and $118.4m in state and local taxes.
Welman said it is “not surprising” to see revenue drop a bit during the summer months, when people tend to spend less time indoors. “Overall, the online gambling market has been remarkably consistent so far. Growth will return — probably in the fall when the weather begins to turn. In the meantime, online casino gaming will continue to be the most dependable source of revenue for operators and for the state that Michigan’s gaming industry can provide.”
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