Michigan’s sports bettors got off to a strong start in the new year by outperforming the house. In spite of that, the iGaming market saw another increase in regard to its revenue in the month of January.
The Public Bettors Begin the New Year On a High Note
The Michigan Gaming Control Board registered a handle of $490.8 million in January. However, both the online sports betting platforms and brick-and-mortar locations suffered a decline of one percent from the previous month.
The sportsbook operators combined to register a total of $33.7 million in gross revenue for the month. Due to the lower results, the adjusted revenue figures came in at $17.9 million, which highlighted a steep decline from December numbers.
The bookmakers accumulated an average hold rate of 6.8 percent, which is below the national average of 7.2 percent. The win rate noted a decline of more than three percentage points for the month (10.2 percent in December).
In terms of tax receipts for the month, mobile operators paid $1.1 million in taxes, while retail locations mustered up a total of $8,939. Due to the underwhelming results, this was an 11-month low for the state. Several internal and external factors have played a role in the decline.
How Did the Bookmakers Do Overall in January?
Despite the revenue numbers taking a hit, FanDuel continues to extend its lead in the market share category. January’s monthly handle increased from 146.1 million to $150 million in January.
DraftKings’ online betting handle noted a decent decline to $117.2 million from $127.1 million in December. Conversely, BetMGM experienced an increase in their handle, clocking in at $110.5 million compared to $99.5 million in December.
In the retail aspect of the operation, Barstool Sportsbook and the Greektown Casino secured the top position for the month by bringing in $5.8 million in bets for the month. MGM Grand Detroit lost the lead by accumulating $5.6 million in wagers.
The iGaming Market Picks Up the Slack
The sports betting volume certainly took a hit, but the iGaming apps have picked off right where they left off. The mobile casino apps generated $153.7 million in revenue for the month, establishing a record for the fourth consecutive month from December’s $152.8 million.
Paul Costanzo, the Lead Analyst for PlayMichigan, has reported a significant surge in the Michigan iGaming industry, with year-to-year revenue growth of 26 percent. The same can’t be said for their online sports betting counterparts.
The casinos continue to exceed expectations, but the sportsbook operators suffered a tremendous loss. The decline could be attributed to Ohio’s universal sports betting launch.
Neighboring states such as Michigan have lost customers because bettors in the Buckeye State no longer have the need to cross state lines to place bets.