Michigan Sports Betting Revenue up to $27.2M in June
Michigan sports betting has plateaued a bit as the summer months approach. However, this is to be expected simply based on the available sporting events to wager on, and June actually brought quite a bit of good news with it came to revenue numbers for Michigan sports betting.
First looking at the sports betting handle, Michigan saw almost the exact same numbers as it had posted in May 2021, with $259.5 million wagered in June. While this is a slight increase, it continues the trend of the lowest betting numbers Michigan has seen in its short history of online sports gambling. For reference, March set the record for the highest handle with over $383 million wagered, largely due to March Madness.
Taking a look at the revenue shows a much more promising story, however. Michigan pulled in $27.2 million in revenue from the $259.5 million wagered. This means that sportsbooks did extremely well with their wagers in June. This then led to the largest tax revenue the state has ever seen from sports betting for a single month, with $1.1 million going to the government.
Why The High Revenue Numbers?
There are always ebbs and flows to sportsbook revenue. The hold percentage, how much the sportsbook makes per dollar bet, can fluctuate rather largely from month to month. However, one thing that is clearly changing in Michigan is the lower number of new bettors. This means that the massive promotions that sportsbooks offer to new users are not being used as much, and sportsbooks are starting to cash in on normal wagers.
Sportsbooks in Michigan are extremely competitive, and due to this, the promotions for bettors and odds pricing have been fantastic. However, as the betting market starts to take shape and bettors settle into their choice of sportsbooks, these offers will start to clear up a bit. This allows sportsbooks to simply make more money on each wager.
This is a significant reason as to why we saw the massive tax number, the largest in Michigan’s history, despite a smaller sports betting handle. There simply was much more taxable revenue this month than there has been in the previous months where sportsbooks were scrambling to win users.
When looking at the numbers, the Michigan market is playing out very similarly to that of other states. According to Playmichigan, FanDuel and DraftKings are leading the market with 32.9% and 24% of the market share, respectively. Then, BetMGM rounds out the top three at 22.2% of the market share. These three giants for the American sports betting world make up nearly 80% of all sports betting in the state.
While this does not come as a major surprise, it does show that even in the most competitive environments, the three big boys of the sports betting world in America can dominate. It will be important to see if any other sportsbooks can breakthrough into the top three in Michigan or other new states.