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Michigan Mobile Books Hammer Public In December

State’s online sportsbooks closed out 2023 with a record $61.1 million in revenue




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Michigan December 2023 mobile revenue

The Michigan Gaming Control Board reported a record $61.1 million in online gross sports wagering revenue for December, as mobile sportsbooks joined their retail counterparts in hammering the betting public to close out 2023.

The $583 million wagered through Michigan betting apps was an all-time high and part of a record $613.4 million in overall wagers accepted. It was the first time the Wolverine State surpassed $600 million in total monthly handle, while December’s figure marked the third consecutive month bettors made more than half a billion worth of wagers online.

Mobile operators had a hold of 10.5%, which was 4.5 percentage points higher than November. Gross revenue was up 25.3% compared to December 2022 and 80% higher than November. The strong closeout to 2023 left mobile operators with $223.5 million in revenue, up 1.8% from 2022. Handle was up 1.7% to $4.63 billion, while the 9.1% win rate was three-tenths of a percentage point higher.

The state was eligible to tax $35.2 million in adjusted gross revenue from digital sportsbooks, an increase of 14.3% year-over-year, but exponentially higher compared to the near-$295,000 from November, when ESPN BET aggressively entered the marketplace as PENN Entertainment’s successor to Barstool Sportsbook. The $2.6 million in state taxes from mobile betting was an all-time monthly high and the first time it surpassed $2 million.

ESPN BET gains on BetMGM for #3 handle spot

ESPN BET was less aggressive in terms of promotional spend. Its $9.8 million outlay for December was almost 40% lower than the $16.2 million in credits in November, but it gained ground anyway, finishing fourth among the state’s 14 mobile betting options for handle. The $55.2 million in accepted wagers was 10.8% higher than November, while its mobile market share increased from 8.8% to 9.5%.

The PENN-operated sportsbook also posted a double-digit hold for the second straight month, landing at 10.3% while claiming $5.7 million in gross revenue. ESPN BET had an 11.2% win rate for November and December, while the $11.8 million in gross revenue was $3.2 million more than what Barstool accrued in the first 10 months of 2023. ESPN BET’s AGR for December was minus-$4.1 million, an improvement of nearly $6 million from December, but PENN Entertainment took an overall loss of $8.3 million in AGR for the calendar year.

BetMGM still had a fairly strong hold on the No. 3 spot for handle, but its action dipped slightly compared to November at almost $76.7 million. It closed out 2023 on a positive note, fashioning an 11.3% win rate to claim $8.6 million in revenue.

FanDuel also had an emphatic bounce-back from a subpar November. Its hold skyrocketed almost eight full percentage points to 12.6%, leading to a monthly state-record $26.4 million in gross winnings. The mobile leviathan finished with an 11.9% win rate for 2023 and kept almost $190.9 million of the $1.6 billion wagered.

DraftKings had plenty of December cheer, setting all-time monthly highs for gross revenue and handle with $17.5 million and $169.9 million, respectively. It was the fourth consecutive month with a record handle for DraftKings, whose $105 million in winnings for 2023 represented an improvement of 48.5% compared to 2022.

Both FanDuel and DraftKings kept the heat on ESPN BET in terms of promotional spend. The duo combined to offer $11.7 million in promotional credits, with DraftKings’ outlay up 6% from November to $6.2 million. BetMGM’s spend was roughly the same month-over-month, totaling close to $2.5 million.

Checking the action elsewhere

PENN Entertainment was not the only licensee to finish in the red in 2023 when it came to adjusted gross revenue. BetRivers avoided a third straight losing month in terms of gross revenue, but it finished December down more than $401,000 after counting deductions. Its fourth quarter was rough — BetRivers paid out nearly $650,000 on top of the $74.9 million handle generated and reported an AGR of minus-$3.1 million, contributing to a full-year loss of $1.4 million.

Firekeepers Casino also had a net AGR loss, though the minus-$327,624 accrued in 2023 was less than half the minus-$762,338 in 2022. It finished with close to $446,000 in gross revenue, posting a sub-3% hold against $15 million handle. WynnBET was a non-factor in December, as handle plunged close to 94% from November to an all-time low of less than $210,000, while it was the only book to post a loss, as bettors came out $4,404 ahead.

PointsBet saved its best for last, posting its first seven-figure revenue haul since November 2022 with $1.1 million in winnings. The nearly $575,000 in adjusted revenue canceled out losses from the previous three months combined and pushed its full-year AGR total just over $2 million. The Fanatics-owned mobile book reported gross revenue totaling close to $8 million from $100.4 million handle.

Caesars had a modest 2.5% hold in December to claim close to $875,000 in gross winnings from $34.6 million handle, though it was enough to push it over $15 million in winnings for 2023. While that was down 24.6% compared to 2022, its $9.2 million in adjusted revenue was was up 179.8% from the $3.3 million in taxable revenue the previous year.

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