Michigan sports betting has seen a dip from year to year, as evidenced by some new data on the betting handle to start the year. The overall handle for the first quarter of the year is down, although it ended on a positive note with March seeing increased numbers.
Michigan sports betting operators, on the other hand, have seen more revenue come in through the start of 2023. The state also collected significantly more in taxes from sports wagering compared to last year.
Michigan Sports Betting Handle Sees First Quarter Dip
The Michigan sports betting market has been one of the top in the country for a while now, although the state has seen an early-year dip in 2023. According to Legal Sports Report, the Q1 sports betting handle for Michigan has dropped 11.5% from 2022 to 2023.
March was overall the most successful month for wagering in the Wolverine State, with a $421.6 million total number, showing an 18% jump from February. March Madness likely contributed to this monthly handle, especially considering Michigan State went on a major run culminating in a Sweet 16 loss to the Kansas State Wildcats. While the quarter ended strongly, that March 2023 number is still 12% lower than March of 2022.
Throughout March of 2023, FanDuel Sportsbook saw the largest handle, with $150 million of total bets representing 35% of the total market. DraftKings Sportsbook was next up with a $101.1 million handle for 23.9% of the market, meaning DraftKings and FanDuel took in over half of the total bets throughout the month. Meanwhile, BetMGM Sportsbook was third in the state with $80 million in betting handle.
— Detroit Tigers (@tigers) April 19, 2023
MI Sports Betting Operators Seeing Increased Revenue
Although the Michigan sports betting handle is down overall, operator revenue has seen a jump. Betting operators in the state brought in approximately $103 million throughout the first quarter of 2023, with March being especially lucrative. Operator revenue hit $46 million last month, representing 44.6% of total revenue to start the year. Tax revenue has also seen an incline, with a 30.7% first quarter increase from 2022.
🚨 MAJOR WAGER ALERT 🚨
This $100,000 bet was just placed @BSSportsbook on Memphis to be the Series Winner against Los Angeles.
Do you think it's a winning betslip? pic.twitter.com/qgMaiWw3CN
— Hollywood Casino at Greektown (@HwoodGreektown) April 19, 2023
Current State of Michigan Sports Betting
Michigan sports betting originally launched on January 22nd, 2021, and quickly grew into a big betting market with residents looking to wager on the Detroit Lions, Michigan Wolverines, Detroit Pistons, and other popular local squads. In addition to welcoming some of the top mobile sports betting apps into the state, Michigan also has retail sportsbooks at casinos such as Greektown Casino, Motor City Casino, and FireKeepers Casino.
Since launching over two years ago, Michigan has seen a lifetime handle of $10.1 billion, with $42.7 million in taxes and other payments and $859.3 million in betting revenue. While sports wagering has been successful in the state, the numbers have seen a decline beyond even Q1 2023’s totals.
Betting handle begin to dwindle in the state throughout the 2022 football season, which is one of the most popular times for bettors. Rather than increasing as the postseason approached, the Michigan monthly sports betting handle decreased from $504.3 million in October 2022 to $490.9 million in January 2023. Whether these numbers are an anomaly or a sign of a continued decline in the state’s future betting market remains to be seen.