Michigan is the latest US state with legal sports betting to post record figures for betting handle in the month of October.
According to the latest figures from the Michigan Gaming Control Board (MGCB) bettors in the state wagered $497.6m on sporting events in October.
October’s handle figure in Michigan represents a new record for the state’s betting market and marks a significant improvement on the $386.8m wagered in September.
Turning to revenue, operators in the state managed to generate a combined $26.9m in October.
While October was a record-breaking month for betting handle, revenue in October was far from the record $35.2m posted in March 2021. October’s sports betting revenue was also down from the $27.1m generated in September 2021.
Promotional spending brings taxable revenue down
In Michigan, sportsbooks can deduct promotional spending from taxable revenues and in the month of October, sportsbooks spent a combined $19.6m in promotional credits.
Of the state’s 15 online sportsbooks, just five spent more than $1m in promotional credits for the month.
As a result of promotional spending, taxable sports betting revenue in October fell to just $7.3m, resulting in operators paying $775,077 in taxes for the month.
How did online operators perform?
In October, FanDuel managed to take the online lead back from DraftKings, despite the latter spending more on promotional credits.
FanDuel, which operates in partnership with the MotorCity Casino took $124m in online bets and managed to generate $10.3m in revenue for the month. The online operator also spent $4.6m on promotional credits, the second-highest promotional spend for the month.
DraftKings, which is partnered with the Bay Mill Indian Community, dropped back to second place in October with $120.4m in bets and just under $3m in revenue. DraftKings spent $5.5m on promotional credits, the highest promotional spend of any Michigan operator in October.
BetMGM, which operates in partnership with MGM Grand Detroit, followed in third place with $102.2m in online wagers and $7.5m in online sports betting revenue. BetMGM was the third-highest promotional spender in October with $4.2m.
Penn National Gaming’s Barstool Sportsbook came in a distant fourth place with $40m in bets and $839,273m in gross sports betting revenue.
Caesars, which is partnered with the Grand Traverse Band of Ottawa and Chippewa Indians, rounded out the top five with $36.5m in online bets and $1m in gross revenue.
PointsBet trailed with $17m in bets and $669,282 in revenue and was the only other operator to pass the $10m handle mark in October.
Michigan takes top-three spot
Michigan now joins the 11 other states with legal betting that have benefited from the five full weekends of the October calendar and the return of professional football betting.
As of Thursday, 12 US sports betting states have now set new handle records for the month of October.
New Jersey leads the charge with $1.3bn being wagered on sports in the Garden State in October. Meanwhile, Pennsylvania followed in a distant second with $776.3m in bets.
With its new report, the state of Michigan managed to snatch third place with $497.6m, beating out Indiana which took $461.1m in bets.
Tennessee rounds out the top five sports betting states with $375.3m in wagers.