Sports betting operators in Michigan maintain a robust 12% hold in February, reflecting a steady revenue generation.
In February, Michigan's sports betting industry experienced a jaw-dropping 54% revenue boost compared to the previous year, despite seeing a minor 6.7% drop in betting volume. The state's operators celebrated one of their most prosperous months ever, according to the Michigan Gaming Control Board (MGCB), thanks to a strapping 12.1% win rate.
Commercial and tribal sportsbooks generated $46.8 million in gross revenue, as recorded by the MGCB. Their triumph stemmed from a higher win rate, even though betting action fell to $388.1 million, a 6.7% dip from the previous year.
Around $380 million went through digital bookmakers' hands, marking a 31.6% downturn from the preceding month. On the other hand, retail operators handled modest funds totaling $8.2 million, raking in surplus earnings of over $820,000 for the state treasury. The state's coffers also welcomed a $1.5 million tax contribution from the $28.1 million in net operator income.
FanDuel Steals the Show
In the mobile sports betting arena, FanDuel reigned supreme, reporting a $142.9 million handle and a hefty 16.6% hold, translating to a whopping $23.7 million in gross revenue. Despite a $75 million dip from the previous month, the Super Bowl provided a much-needed push to maintain profits.
DraftKings joined the chase, pocketing $12.8 million in revenue with a handle exceeding the $100 million mark. BetMGM recorded a $54.7 million handle despite a skimpy hold of under 9%, resulting in net income of $4.9 million.
Other Notable Performances
Fanatics Sportsbook recorded a $24.7 million handle and $2.2 million in earnings, while ESPN BET logged $1.7 million from $18 million in wagers. Caesars Sportsbook faced a rare setback, incurring a loss of nearly $79,000 on a $19.7 million handle.
The joint performance of January and February marked an auspicious launch for Michigan's sports betting market, surpassing the prior year's first-quarter returns and raking in over $132 million in just two months.
Even though betting activity slipped by 5% compared to the same period last year, an incredible 65% revenue increase was realized primarily due to higher win rates. Michigan operators achieved consecutive months with over 12% win rates for the first time.
Unfortunately, the iGaming sector in Michigan endured a decline. The MGCB disclosed that online casino gaming revenue fell 10.5% to $222 million in February, breaking a four-month streak of record-setting earnings. Despite the setback, adjusted revenue still boomed 23.6% YoY to $209.1 million, contributing approximately $42 million in state taxes.
So, Michigan continues to dominate the U.S. gambling scene as both its sports betting and iGaming sectors thrive.
In the realm of mobile sports betting, FanDuel generated a significant portion of the revenue, earning $23.7 million from a handle of $142.9 million, demonstrating a high win rate. Meanwhile, the Michigan business sector, including the finance aspect related to the state's sports betting and iGaming operations, has witness a 65% revenue increase despite a minor dip in betting volume.
