Retail and online sportsbooks in Michigan handled $386.8m in wagers in September, as the start of the college and professional football seasons attracted a wave of bettor enthusiasm, according to PlayMichigan.
The figure set a new record in combined retail and online betting volume.
Online sportsbooks in the Wolverine State accepted $354.3m in bets in September, up 84.2% from $192.3m in August, according to official data released by the Michigan Gaming Control Board. September’s online handle fell just short of the record $359.5m set in March.
The online total, combined with $32.5m in retail wagering at Detroit-area casinos announced earlier this week, pushed the September handle to a new monthly record.
The new high was coupled with the first month of $100m in online casino revenue in the state, helping set a new baseline for Michigan’s gaming industry, assessed Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayMichigan.com.
“The potency of a full football schedule and access to online betting is unmatched,” Ramsey said in a statement. “September will raise expectations for the industry, and the bar was already pretty high. The next three months have the potential to bring even more records.”
Gross gaming revenue from online betting rose 49.0% to $23.7m, from $15.9m in August. Combined with $3.5m in retail revenue, sportsbooks won a total of $27.1m for the month, a rise of 54.7% from $17.5m in August.
Gross income from online betting produced $17.4m in taxable revenue, yielding $690,271 in state and local taxes.
Football's popularity in general, and undefeated starts by both Michigan and Michigan State, helped push the market to a new high, said Matt Schoch, an analyst for PlayMichigan.com. Later this month, the rivals meet each other in a matchup of potentially two Top 10 teams, providing an opportunity for sportsbooks to attract new customers.
“The Michigan-Michigan State game likely will help make September’s records short-lived, even as the Detroit Lions’ struggles continue,” Schoch said. “The state’s sportsbooks are in a healthy position. And with basketball opening, the industry will continue to grow and mature for the rest of the year.”
DraftKings topped the online market for the second consecutive month with $106.9m in wagers, yielding $3m in gross gaming revenue.
FanDuel was second with $82.1m in wagers, producing $7.2m in gross sports betting revenue. BetMGM generated an $81.8m handle and topped the market with $8.8m in revenue.
“DraftKings, FanDuel, BetMGM and other operators have been extremely aggressive in using football to push for new customers,” Schoch noted. “September’s growth shows those promotional efforts are paying off, and that will help expand the market even after the football season ends.”
New marks for online casinos, poker
Michigan’s online casinos and poker rooms set another record, with $102.4m in gross gaming revenue in September. That shattered the previous mark of $97.2m set in August, as revenue rose to $3.4m per day over the 30 days of September from $3.1m per day in August.
BetMGM/MGM Grand Detroit led the online casino and poker market with $40.6m in gross gaming revenue, which yielded $7.2m in state taxes.
September’s revenue produced $18.9m in state taxes and $5.2m in local taxes.
Michigan joined New Jersey and Pennsylvania as the only three states to ever produce $100m in revenue over the course of a month. Analysts said the increase can be attributed to the expansion of gaming options, including live dealer online casino games, which continue to grow in popularity after launching in late July.
“Live dealer games have pushed online casino gaming to a new level,” Ramsey said. “The state’s industry almost certainly will reach $1bn in revenue in its first year of existence, which is a remarkable milestone for such a young market.”
