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According to their latest investor call, DraftKings Inc. has had a successful Q1 for 2025.
In the first quarter of 2025, the company proudly announced that it held the largest iGaming market share in the country, standing at 26%. Simultaneously, its online sports betting market remains fiercely competitive in its pursuit of securing a leading position nationwide.
Nevertheless, in Michigan, DraftKings is facing difficulties in keeping pace with the dominant competitors in both sectors.
Although DraftKings remains one of the leading online operators, it lags significantly behind BetMGM in terms of online casino revenue in Michigan. Furthermore, it falls far behind FanDuel in both online sports betting wagers and revenue.
Where DraftKings sits among Michigan online gambling sites
DraftKings has emerged as one of the three dominant online operators in Michigan, alongside FanDuel and BetMGM, leaving the other 12 operators trailing behind.
Third in online casino revenue
BetMGM Michigan is unrivaled when it comes to online casinos in Michigan.
In Michigan, BetMGM has generated a remarkable online revenue of over $1.2 billion, surpassing all other competitors by a significant margin. Its market share in the state stands at an impressive 36.5%, more than double that of any other player.
In terms of revenue, FanDuel Casino MI holds the second position with $567.3 million, accounting for 17% of the market share. On the other hand, DraftKings Casino MI closely follows in third place with $545.6 million, representing 16.7% of the market share.
Second in sports betting handle, third in revenue
Since Michigan legalized online sports betting in January 2021, DraftKings Sportsbook MI has collected a staggering $2.5 billion in online wagers, securing a 23.7% market share of the state’s sports betting handle.
In Michigan, FanDuel Sportsbook takes the lead with a handle of $3.1 billion, accounting for 29.6% of the market. Meanwhile, BetMGM Michigan follows closely behind with a handle of $2.4 billion, representing 22.6% of the market.
DraftKings stands out in terms of revenue. With a lifetime hold of only 6.1%, it has accumulated $151.9 million in lifetime revenue. However, this amount is significantly lower compared to FanDuel’s $347.7 million and BetMGM’s $227 million.
DraftKings’ recent success still not at pace with top operators
Despite positive results in both categories, DraftKings’ 2025 figures still fall short of those achieved by the leading operators.
Online casino growth not matching FanDuel
In April, Michigan witnessed a further boost in its online casino industry, achieving its second-highest monthly revenue of $159.4 million.
DraftKings accounted for $28.1 million of that sum, representing 17.6% of the state’s market share. This marked a positive increase from its average share of 16.7%.
In four consecutive months, DraftKings achieved a minimum share of 17%, while its revenue for the first four months of 2025 increased by an impressive 40.3% compared to 2022.
Despite this, the gap is still not being closed. BetMGM and FanDuel have also experienced significant revenue growth in the first third of 2025.
- BetMGM reported a revenue of $208.8 million, representing a growth of 10.7% compared to the previous year ($188.6 million in 2022).
- FanDuel’s revenue for the year 2025 stood at $123.9 million, experiencing a significant growth of 53.7% compared to the previous year’s earnings of $80.6 million.
- DraftKings reported a revenue of $112.8 million, indicating a significant increase of 40.3% from the previous year’s $80.4 million.
FanDuel pulling away in sports betting
Online sportsbooks in Michigan have experienced a discouraging beginning to 2025 as the state’s handle has witnessed a collective decline of nearly 10% over the initial four months in comparison to the same period in 2022.
In 2025, FanDuel has experienced growth in its online handle, surpassing $20.7 million, making it one of the few operators to achieve this.
In comparison to its rivals, DraftKings experienced a relatively minor setback, with a decrease of only 3.3% amounting to $13.4 million. Conversely, six other books have seen a significant decline of at least 20%.
DraftKings has witnessed notable growth in revenue this year. Compared to 2022, the company’s revenue has surged by an impressive 63% in 2025, resulting in an additional collection of $10.8 million.
Despite that, FanDuel has managed to maintain its style despite a significant $25.3 million increase in revenue this year.
Why is DraftKings not stronger in Michigan?
DraftKings’ numbers in Michigan are not aligning with the national trend for the online operator due to several reasons.
DraftKings Inc. acquired Golden Nugget online gaming in the previous year, which is now included in DraftKing Inc.’s reported 26% market share in the national iGaming industry. This acquisition contributes approximately 4-5 percentage points to the overall total.
In Michigan, Golden Nugget holds a 4.5% share ($150.6 million) of the online casino market. If we combine this with DraftKings Inc., their overall market share in the state would be 21.2%.
Furthermore, DraftKings’ overall numbers are slightly affected as BetMGM is not accessible in Connecticut, which happens to be one of the limited states in the country that allows online casinos.
DraftKings has successfully seized opportunities in emerging markets, particularly in its home state of Massachusetts. Notably, it has achieved dominance by capturing more than 50% of the market share in April.
How is DraftKings trying to bridge the online gap?
In the 2025 Q1 investor call, DraftKings CEO, Jason Robbins, elaborated on his perception of the current product’s strengths.
One advantage was its capacity to attract new customers with reduced promotional expenses compared to previous methods.
Robbins expressed his satisfaction with the fact that we gained 57% more first-time players compared to the previous year, while managing to reduce the cost of acquiring them by 27%.
DraftKings remains committed to cross-selling, recognizing the growing trend of customers transitioning between various gambling platforms.
Robbins emphasized the strong connection between sports betting and iGaming, stating that as we increase our market share in sports betting, it will naturally lead to a growth in our share in iGaming if we maintain our effective cross-selling strategy. He believes this to be a significant aspect to take into account.
In the realm of sports betting, the hold has proven to be the major distinguishing factor between DraftKings and its primary rival, FanDuel. In Michigan, FanDuel has maintained an impressive lifetime hold of 11.2%, which has surged to over 13% in the past two months.
DraftKings recognizes the influence of parlay betting on increasing their profit margin and, as a result, has introduced live betting same game parlays for NBA and MLB. Nevertheless, the company is mindful of not compromising customers’ odds in order to achieve a higher hold.
Robbins expressed that he believes the idea of making the odds worse or exploiting players for higher profits is not currently under consideration. He emphasized the importance of developing products that are desirable, have a high retention rate, and provide ongoing enjoyment for users.
In both April and the preceding month, DraftKings in Michigan exceeded its previous record of a 6.1% lifetime hold, with an impressive 10.7% hold in April.
