A 5.7% increase in sports betting handle year-over-year did not produce the results Michigan operators wanted during a high-volume October.
During a customer-friendly month, bettors demolished retail sportsbooks and held their own against mobile operators. The Michigan Gaming Board reported that $582.6 million was wagered in October, the second-consecutive month with over $500 million handle and fourth-best ever.
However, a combined 5.5% hold led to gross revenue of $32.2 million, a 30% decrease from October 2023’s haul. Adjusted revenue of $9 million was down 63.3% year-over-year.
Despite 11.2% more wagers in October compared to September, gross revenue fell 45.6% month-over-year. Behind more bettor-favorable NFL results in October, the hold fell nearly six points from the previous month.
The 12 online sports betting operators and three retail shops paid $576,023 in taxes to the Wolverine State.
Retail hammered again
Retail sportsbooks recorded a second-consecutive poor month. Following September’s win rate of less than 4%, two of the three brick-and-mortar shops ended up in the red during October.
Motor City Casino reported a $524,807 loss on an $11.2 million handle while MGM Grand Detroit paid out $473,649 more than it took in from a $4.5 million handle. Hollywood Casino at Greektown was at least able to hold on to $175,905 of the $6.6 million wagered in October.
The combined loss of $822,551 was the second-highest in a single month ever for retail operators.
FanDuel survives, DraftKings loses
| Operator | October Handle | Revenue |
|---|---|---|
| FanDuel | $211.3 million | $17 million |
| DraftKings | $159.9 million | $6.5 million |
| BetMGM | $84.3 million | $4.7 million |
| ESPN BET | $31.5 million | $1.8 million |
| Fanatics Sportsbook | $29.5 million | $1.3 million |
| Caesars | $27.7 million | $1.2 million |
Online sportsbooks combined for a $560.4 million handle that surpassed $4 billion year-to-date. A 5.9% hold led to $33 million in combined revenue.
FanDuel led Michigan’s mobile operators with $211.3 million wagered and $17 million in gross revenue on an 8% hold.
DraftKings only produced a 4% hold on the second-best handle of $159.9 million for a 62.6% month-over-month revenue decrease. The adjusted revenue produced a loss of more than $384,000 for DraftKings.
No other Michigan sports betting operator reached $5 million in gross revenue, but BetMGM continued to hold down the third spot with a handle of $84.3 million in October. ESPN BET’s revenue was the same as September’s haul while the handle of $31.5 million jumped 22.5%.
Fanatics Sportsbook had its best handle month ever in Michigan with $29.5 million generated in October, while Caesars wasn’t far behind at $27.7 million. Both operators produced win rates below 5%.
Online casino record
Michigan set a new iGaming record in October. The Wolverine State’s 15 online casino operators combined to produce $220.7 million in gross revenue, topping the previous high of March’s $215.2 million.
iGaming revenue rose 37.7% year-over-year and 8.9% month-over-month. Adjusted revenue of $198.6 million put $41.5 million in Michigan’s coffers.
