July 2023 Ends in $22.5 Million Revenue for Michigan Online Sportsbooks

Sports betting in Michigan has had some negative outlook throughout the year, but despite its downsides, the industry has been pretty consistent. Declines have continued steadily over the course of months while improvements have also developed a noticeable pattern. In July, Michigan sportsbooks were largely positive where it mattered the most. The online industry pooled a revenue of $22.5 million, all from a wagering handle of $200.8 million.

According to data from the Michigan Gaming Control Board, the sports betting sector has consistently generated higher revenues despite poor wagering handle. And if this trend continues, the state may well be on course to set a new sports betting revenue record. 

Overall sports betting handle in Michigan amounted to $208.8 million, with the online industry contributing $200.8 million to that figure. While the handle represented an 11.5% dip from last month and a further 7.2% decline year-over-year, the state’s sportsbooks gained a significant revenue off the wagers they received.

In July, revenue rose to $23 million, including an online revenue of $22.5 million. This figure represented a 4.1% increase from July 2022. Back in June 2023, the state could only secure a revenue of $17.9 million from a betting handle of $235.9 million. A poor showing at some Detroit casinos contributed to this loss.

But what stakeholders can confirm from July is that revenue is on an upward trajectory regardless of wagering handle. Throughout the seven months of 2023 already recorded, Michigan has gained $213.2 million worth of revenue. This is 12.9% more than the first seven months of 2022 where the state could only manage a revenue of $188.9 million. In addition, this marked the sixth month running when Michigan had a higher monthly online sports betting revenue than in the previous year.

All of this points to the fact that Michigan may break its online sports betting record by the end of the year. Also, sportsbooks also seem to have found a way to avoid terrible losses and make the most of the bets they handle monthly.

Betting hold remains an important metric for sportsbooks in Michigan. Having a higher hold usually translates to better revenue, and this played out perfectly in July. The state saw a wagering hold of 11%, and this was a remarkable jump from June’s hold of 7.6%. It was also the fourth time in the past five months that Michigan’s sportsbooks had a collective hold of more than 10%.

Eagle Casino & Sports had the largest hold among Michigan operators with 23.1%. This hold resulted in a revenue of $182,085 from a total of $788,443 worth of wagers placed in July. It led nine other sports betting operators that posted a double-digit hold. BetMGM Sportsbook MI had the highest hold among the top-three operators with 12.1% accounting for a revenue of $35.1 million.

FanDuel ended the month on top again with an 11.9% hold, $75.9 million bets handled and $8.9 million in revenue. As expected, DraftKings Sportsbook Michigan held close to second place, edging out its closest competition with a revenue of $5.5 million. At the end of the day, all operators combined to pay $1.1 million in taxes to the state and $73.5 million to local authorities.

Flutter recently announced the shutdown of FOX Bet in Michigan, but that was not before the state could post financials for July. Unfortunately, FOX Bet did not bow out honorably as it ended its course with its lowest ever revenue since October 2022. The Odawa Casinos-operated online sportsbook handled $816,226 worth of bets, its lowest since its launch in January 2021.

FOX’s online revenue stood at $79,157 for the month of July. With the tribal operator now tasked with finding a suitable alternative, these figures don’t augur well for the next online brand. The sportsbook fluctuated between 9th and 12th positions among the rankings of online sportsbooks in the state. Whoever takes over the license next may be looking to develop on strong points and cash in on a larger market share than its predecessor.