The Michigan Gaming Control Board reported Tuesday that the state’s sportsbooks amassed $533 million in online sports wagering handle in October, marking the first time the state surpassed one-half billion dollars.
The mobile handle was nearly 97% of an overall handle of $551.1 million that set an all-time state record since internet sports betting launched in January 2021. The previous online handle record of $496.8 million was established in January 2022, and October’s year-over-year digital sports wagering was up 10.9% from the previous October.
The state’s 14 online sportsbooks claimed more than $46.1 million in gross revenue for the month, resulting in an 8.4% hold. The NFC North-leading Detroit Lions likely contributed to the record handle as did aggressive promotional offers from operators. The adjusted gross revenue of nearly $23.5 million was barely more than 52% of the $45 million in gross operator winnings.
It was also another strong month for internet casino gaming as Michigan’s 15 operators totaled $160.3 million in gross revenue to rank second all-time to the $166.4 million from September. Despite the month-over-month decline, year-over-year revenue vaulted 13.7% higher compared to October 2022.
The state levied taxes on $144.2 million in adjusted gross revenue from online casino gaming, resulting in an inflow of more than $30.1 million into its coffers. The state also received nearly $1.8 million in tax receipts from mobile sportsbooks.
The city of Detroit claimed more than $8.1 million in taxes from digital wagering for the month, with close to $7.5 million originating from online casino gaming. The tribes received more than $3.7 million to disburse to local jurisdictions in October and the $34.8 million disbursed through the first 10 months of the year exceeds the $32.8 million for all of 2022.
BetRivers shows both record handle and record loss
It has been a notable autumn for BetRivers, which muscled past Caesars into fourth among digital operators for sports betting handle in October while more than doubling its previous record set in September. BetRivers accepted $45.5 million worth of wagers, which accounts for more than one-third of its $131.7 million handle for the 2023 calendar year.
But after a solid September in which BetRivers crafted an 8.6% hold while winning $1.9 million, it gave more than one-third of that total back to the public. Bettors came out nearly $750,000 ahead in October in dealing the book its first monthly loss in Michigan in emphatic fashion. BetRivers’ adjusted revenue for the month was minus $1.7 million, easily its all-time low as its overall AGR for 2023 swung into the negative at minus $16,348.
It was not the only online sportsbook to get knocked around by the public in October. Caesars, which was fifth in handle at $42 million, saw bettors walk away with over $306,000, as it also had a seven-figure loss when it came to adjusted revenue at slightly more than $1 million. It was the second monthly loss in Michigan for Caesars, which previously paid out nearly $290,000 above $18.3 million in bets placed in June 2022.
Three other sportsbooks — PointsBet, SI Sportsbook, and Firekeepers — all finished with negative AGR despite finishing with positive gross revenue in October. PointsBet, which had a 2023-best $12.5 million handle, had the biggest spread of the trio at more than $772,000 as its AGR was lower than minus $411,000.
At the other end, FanDuel maintained its status quo with $20.5 million in gross revenue while piecing together an 11.8% win rate from $173.4 million handle. It was the 16th consecutive month FanDuel notched a double-digit hold as it topped $150 million in gross revenue for 2023.
DraftKings had its third 11%-plus hold all-time in Michigan, landing narrowly above the mark as it claimed a record $16.3 million in gross winnings from $147.4 million worth of accepted bets. It was the first time DraftKings had back-to-back months with $10 million in gross revenue, but it also had another big promotional outlay as overall deductions totaled more than $7.7 million. DraftKings has had close to $17.2 million in deductions the last two months, a key reason its AGR of $38.4 million is slightly less than half its year-to-date gross revenue of $76.9 million.
FanDuel again sets online casino revenue benchmark
For online casino gaming, FanDuel showed its staying power by setting an all-time revenue record for the second consecutive month. The digital juggernaut came within $48,000 of $37 million, topping September’s short-lived record by $1.8 million and surging 60.5% higher compared to 12 months ago. FanDuel has already blown past its full-year 2022 revenue total of $258.7 million, entering the final two months of this year with $318.5 million in winnings.
FanDuel not only pipped DraftKings for second in revenue among all online casino operators, it also closed the gap between itself and state bellcow BetMGM to under $10 million for the month. BetMGM had over $45.6 million in revenue for October, but that was down 12.8% compared to last year and 6.2% from September.
DraftKings posted back-to-back months with $30 million-plus in winnings for the first time, with its $32.2 million its second best month ever. Like its eternal rival FanDuel, DraftKings is already well past its 2022 full-year revenue totals and is about $6.9 million from $300 million in gross revenue for this year.
BetRivers‘ recent surge in sports betting popularity extended to online casino gaming as it set a new revenue benchmark for the second time in three months with more than $10.6 million in October. That edged out its record from August by less than $100,000. BetRivers has averaged $10.2 million in gross revenue during the last three months.
PointsBet also notched an all-time monthly high for revenue at $2.2 million, marking the first time it surpassed $2 million. PointsBet has cleared $1 million in revenue in 12 consecutive months after doing so just once from its May 2021 launch through September 2022. The $15.2 million in year-to-date revenue is nearly half its overall total of $31.1 million.
The three online casino commercial skins from Detroit accounted for $85.9 million of revenue compared to the tribe’s $74.4 million. The spread between the two widened to more than $11.5 million after being whittled to nearly $6.4 million in September. The gap was nearly $18.9 million last October.
Photo: Raymond Boyd/Getty Images
