The Michigan Gaming Control Board reported more than $210 million in operator gross revenue from internet casino gaming and online sports wagering for September, as DraftKings set an all-time high for tribal partners in iGaming.
The $166.4 million from internet casino gaming from the state’s three commercial operators and 15 tribal ones was the second-highest total since launch in January 2021 and second only to the $171.8 million generated in March. It was also 29.3% higher than the $128.7 million claimed by operators in September 2022 and a 9.3% improvement from August.
The Wolverine State’s 14 mobile sportsbooks had a collective 9.6% hold on $457.7 million handle, resulting in $44 million in gross revenue. Operators — most notably DraftKings and BetMGM –aggressively courted bettors, as both had adjusted gross revenue totals of less than 50% of gross revenue.
The state collected $1.25 million in sports betting taxes, while the city of Detroit claimed more than $470,000.
DraftKings among three to set monthly iGaming highs
DraftKings again bettered the standard for all iGaming operators affiliated with tribes, claiming $37.1 million in September. That shattered its previous high of $31.6 million March and represented a 69.8% increase from last September. The online titan collected $260.9 million in gross revenue in the first three quarters of 2023, which is 48% better than the comparable span last year and in excess of its total for all of 2022.
The state was eligible to levy taxes on $149.8 million of adjusted gross revenue (AGR) from iGaming and $18.7 million from sports wagering. Michigan tax coffers saw an inflow of $31.3 million from iGaming, while the city of Detroit received $7.5 million. Tribes that conducted internet casino gaming disbursed more than $4 million to local jurisdictions in September, an all-time monthly high.
FanDuel, which operates its iGaming suite through MotorCity Casino in Detroit, also set an all-time high at close to $35.2 million. It was approximately $1 million better than its previous record from March and 56.6% higher compared to September 2022. September’s revenue total also put FanDuel’s 2023 year-to-date gross revenue beyond its full-year 2022 figure of $258.7 million, with the $281.5 million accrued in the first nine months a 56.8% improvement from 2022.
PointsBet, which operates through the Lac Vieux Desert Band, was the other operator to set a new standard in September at close to $1.9 million. It was just the third time PointsBet surpassed $1.5 million in gross revenue and easily outpaced its previous best of almost $1.7 million in March.
As usual, BetMGM paced all iGaming operators in gross revenue with $48.6 million, as it topped $400 million in gross revenue for 2023. Detroit’s three casinos reported $86.4 million in internet casino gaming revenue, but the gap between the trio and the 15 tribal operators again shrunk. This time, the difference was $6.4 million, approximately $230,000 closer than August and less than half the $15.8 million that separated them in September 2022.
In addition to new monthly highs by DraftKings and PointsBet, BetRivers followed up its record $10.5 million haul from August with another $9.6 million in September, its second-best total ever. The 15 tribal entities came within $12,000 of $80 million in gross revenue, the best month since launch and easily better than the previous high of $77.1 million set in March.
FanDuel runs double-digit hold streak to 15 months
Though FanDuel may have came in a close second to DraftKings in iGaming, it maintained its customary spot atop the online sportsbook operator revenue rankings. It had a hold of 11.7% on $144.7 million handle, resulting in $16.9 million in gross revenue.
FanDuel offered plenty of incentives to bettors, as its adjusted gross revenue of $9.1 million was less than 55% of its gross revenue. DraftKings and BetMGM, however, were among eight mobile operators whose AGR was less than 50% of its gross revenue for Septembers.
DraftKings reported $11.7 million in gross winnings from $137.3 million worth of accepted wagers for an 8.5% hold, but its AGR of $2.3 million was less than 20% of that amount. BetMGM finished with $2.8 million in AGR, which represented 36% of its $7.8 million in gross revenue. BetMGM was narrowly denied a 10% hold for the third straight month, as it reported a handle of nearly $78.2 million.
Caesars‘ strong September and light promotional spend lifted it to third among all operators with $2.8 million in AGR. It posted back-to-back monthly holds of above 10% for just the second time in Michigan, reaching 10.2% in claiming $3.4 million in gross revenue from $33.7 million handle.
BetRivers obliterated its previous monthly highs in revenue and handle, reaching seven figures in gross revenue for the first time at $1.9 million — nearly triple the former best of $686,025 in July. Its $22 million handle was almost double its previous high-water mark of $11.1 million set in January.
None of the mobile sportsbooks posted a monthly loss when it came to gross revenue, but PointsBet and Golden Nugget reported five-figure losses for AGR. PointsBet had an AGR of minus-$45,000 despite an 8.6% hold on $8.9 million handle that resulted in nearly $762,000 in gross revenue. Bettors who wagered through Golden Nugget nearly broke even, as the book came out only $9,356 ahead on $1.1 million worth of bets. It finished with an AGR of minus-$17,133, its second consecutive five-figure loss.
Michigan’s $457.7 million online handle was more than double August’s $218.5 million and 25.6% higher versus September 2022. Gross revenue, though, was down almost 8%, as the 9.6% hold this year was more than 3.5 percentage points lower compared to 2022.
Gross revenue from mobile sports betting for 2023 is up 7.5% versus 2022 to $280.3 million despite a 5.4% dip in handle to $2.94 billion. Operators have crafted a 9.5% hold through the first nine months of this year, more than 1.1 percentage points better than the same period in 2022.
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