Michigan Reports 1.2% Increase in Total Sports Betting Handle in August
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The Michigan Gaming Control Board (MGCB) reported a slight increase in total sports betting handle in August after July was the worst month in Michigan’s sports betting history. The MGCB reported $208.6 million in sports betting in August, a 1.2% increase over July. Online sports betting accounted for $192.3 million of that total or 92.1%. In July, Michigan reported a total sports betting handle of $206.2 million, down 20% from June’s $259.5 million, so a slight bounce-back in August was a welcome sight. August’s results pushed Michigan past $2 billion in total online and retail sports wagering for the year.
Michigan Sports Betting History
Michigan’s online sports betting market launched on January 22, 2021, and with over $300 million in total bets, it was the largest debut for sports betting in US history. Governor Gretchen Whitmer originally signed two bills legalizing both Daily Fantasy Sports (HB4308) and online sports betting (HB4311) in December 2019. After an extensive regulatory period, online sports betting was able to launch earlier this year. Michigan has an all-time sports betting handle of just over $2 billion, making it the fifth-largest United States market. The largest month for sports betting was March 2021, with a $383 million handle, but that number is expected to be surpassed this fall during the football season.
Revenue and Tax Payments
Sports betting revenue totaled $17.5 million in August on an 8.4% hold. The hold rate had surpassed 10% in each of the previous two months, while August’s revenue was the lowest since January 2021, when online sports betting launched. Online sports betting operators paid a total of $679,308 in taxes in August, a decrease of 16% from $808,027 in July. That tax amount represented about 3.8% of the total revenue sportsbooks brought in. In August, the entire gambling market contributed over $18.4 million in state taxes and payments, with online sports betting representing just 3.6% of that total amount. Since the January 22 launch, the aggregate internet gaming adjusted gross receipts have been $606.3 million, with online sports betting reaching $60.5 million, about 10% of that total amount.
DraftKings Tops FanDuel
For the first time since sports betting launched in January, DraftKings surpassed FanDuel for the highest total sports betting handle in Michigan. DraftKings, partnered with the Bay Mills Indian Community, reported $61.3 million in total handle for the month, 31.9% of the total market, with $181,677 paid in taxes, 26.7% of the total amount. FanDuel, partnered with MotorCity Casino, had $47.6 million in total handle, 24.8% of the total market, and paid $191,292 in taxes, 28.1% of the total amount. BetMGM, partnered with MGM Grand Detroit, ranked third with $43.6 million in total handle, 22.7% of the total market, and paid $116,058 in taxes, 17.1% of the total amount. Barstool Sportsbook, partnered with Greektown Casino, rounded out the top four with just $13.1 million in total handle, 6.8% of the market, and $30,630 paid in taxes, 4.5% of the total amount.
