Michigan sports betting handle jumps to $208.6m in August

Michigan’s legal sports betting market saw an increase in consumer spend for the month of August but was accompanied by a fall in revenue.

According to the latest figures from the Michigan Gaming Control Board (MGCB) bettors in the state wagered $208.6m on sporting events in the month of August.

The majority of the state’s handle came from online channels in August after online sportsbooks processed a combined $192.3m in wagers. Meanwhile, $16.3m was wagered in-person at the state’s land-based commercial casinos in Detroit.

August’s betting handle was up slightly month-on-month from the $206.3m wagered in July.

Although handle was up, sports betting revenue fell 15.5% month-on-month down to $17.5m in August. This marked a notable drop from the $20.8m generated the previous month. 

Operators in the state paid a combined $679,308 in taxes to the state of Michigan in August.

DraftKings dethrones FanDuel

For the first time, FanDuel is no longer the most popular online sportsbook in Michigan in terms of handle.

DraftKings, which is partnered with the Bay Mills Indian Community, took a total of $61.4m in wagers for the month of August. The sports betting giant also had the highest promotional spend in August with $2.2m. After accounting for adjustments, the operator generated $2.2m in revenue

FanDuel, which is partnered with MotorCity Casino, saw handle fall to $47.7m in August. When it comes to revenue, the operator posted adjusted gross revenue of $3.3m. FanDuel spent roughly $1.6m on promotional credits.

BetMGM took the third spot with $43.7m in wagers and adjusted gross revenue of just under $2m. BetMGM spent $1.9m on promotional credits, the second-highest in the month.

Barstool Sportsbook, which is partnered with Greektown Casino, came in a distant fourth place with $13.1m in wagers and $520,921 in adjusted revenue. 

The only other operator to hit the $10m threshold for sports betting handle was the Caesars-branded sportsbook, which is partnered with the Grand Traverse Bay Band of Ottawa and Chippewa Indians. Michigan bettors wagered $10m with the Caesars sportsbook but the operator made a loss of $571,197 after adjustments.

Barstool continues to dominate the land-based space

The Barstool sportsbook at the Greektown Casino continued to dominate the land-based betting space after taking $8.8m in wagers and generating $565,431 in revenue.

The BetMGM sportsbook at the MGM Grand Detroit followed in a distant second with $4.3m in handle and $851,920 in revenue.

The FanDuel sportsbook at the Motorcity Casino came in at third place with $232,675 in revenue from $3.2m in bets.

The first full football season for online sportsbooks

Upon launching during the NFL Playoffs in January, Michigan’s online sports betting market showed its potential, but now the state will have a chance to show what it can do with its first full season of online football betting.

Historically, states with legal sports betting have recorded their top figures during the NFL season.

Michigan sportsbooks spent $8.3m on promotional costs in August, up from $7.2m in July. This was likely in an attempt to acquire more customers in the run-up to the launch of football season.

It is likely that sportsbook operators will increase their promotional spending to acquire more customers over the course of the season.