Go straight to the content.
Part 1 of a two-part series examines the initial two years of legalized online gambling in Michigan. Stay tuned for Part 2 next week, where we will delve into Michigan’s online casinos.
Michigan’s state legal online sports betting will reach its 2-year milestone on Sunday, Jan. 22.
Since its launch day, the number of online sportsbooks has grown from 10 to 15 over the past two years.
In just two years, Michigan’s online sports betting reached an impressive $8.21 billion in total handle, surpassing the initial 24-month figures of states such as Pennsylvania, New Jersey, and Colorado.
Michigan online sports betting lifetime handle, revenue and taxes
Let’s take a glimpse at the revenue generated by Michigan online sportsbooks during their initial 24 months of operation.
Michigan online sports betting handle
- The total handle for 2021 amounts to $3.66 billion.
- The total handle for the year 2022 amounted to $4.56 billion.
- The total handle over a span of two years amounts to $8.21 billion.
In the initial 2 years, Michigan’s online sportsbooks demonstrated impressive performance. However, when compared to other states, Pennsylvania recorded $6.35 billion, New Jersey reached $6.32 billion, and Colorado surpassed them all with $6.85 billion.
Nevertheless, Illinois managed to contribute an astonishing $12.5 billion within its initial 24 months.
Michigan online sports betting revenue
- The total revenue for 2021 amounted to $292.2 million.
- The total revenue for the year 2022 amounts to $399.6 million.
- The total revenue generated over a period of two years amounts to $691.7 million.
The state and local entities have been able to generate a significant amount of cash through the wagered amount and revenue collected.
Michigan online sports betting state taxes
- The aggregate state taxes for the year 2021 amount to $7.3 million.
- The total amount of state taxes for the year 2022 is $13.7 million.
- The total amount of state taxes collected over a period of two years is $21 million.
Michigan online sports betting city taxes
- The total city taxes for the year 2021 amount to $4.1 million.
- The total amount of city taxes in 2022 is $6.7 million.
- The sum of city taxes over a span of two years amounts to $10.8 million.
Football is king for Michigan sports betting
Sports bettors in Michigan hit the ground running as the launch date coincided with the 2021 AFC and NFC Championship games.
Michigan residents were given sign-up offers and promotions specifically designed for first-time users, enabling them to engage in online sports betting during the Super Bowl. This momentum continued into March Madness, and the experience took off successfully.
Over the past two years, it has become evident that football season is the pinnacle for sports betting.
During the peak of football season, the heart of online sports betting in Michigan experiences the five most significant months.
- In January 2022, a total handle of $496.8 million was reported.
- December 2021: $484.6 million
- October 2022: $480.8 million
- November 2022: $480 million
- December 2022: $478.7 million
Despite having the fewest games played annually, football (both college and NFL) contributes to approximately 33% of the state’s sports betting handle each year.
Football season accounts for the highest online sports betting revenue, as evidenced by the fact that the top five revenue months align with this period.
- November 2021: $54.1 million
- October 2022: $49.2 million
- December 2022: $48.8 million
- September 2022: $47.8 million
- November 2022: $40.8 million
Fanduel, DraftKings, BetMGM online sportsbooks lead the way in Michigan
For the past two years, Michigan has witnessed a fierce competition among three leading online sports betting operators, vying for dominance in the market.
In Michigan, FanDuel Sportsbook MI, DraftKings Sportsbook MI, and BetMGM Michigan have emerged as the leading innovators in the industry.
In Michigan, the trio has dominated the online handle, making up 76.2% of it over the span of two years. Let’s take a look at their individual performances.
- FanDuel: 28.87% ($2.37 billion)
- DraftKings: 25.58% ($2.10 billion)
- BetMGM: 22.17% ($1.82 billion)
Although the trio remains dominant in the revenue market share, FanDuel has managed to distinguish itself from the other two, making it less competitive. Together, these three companies hold 80.9% of the market share.
- FanDuel: 37.08% ($256.5 million)
- BetMGM: 26.12% ($180.7 million)
- DraftKings: 17.94% ($124.1 million)
Barstool Sportsbook MI has consistently ranked fourth in terms of online handle (8.53%) and revenue (7.49%) since its launch. Nevertheless, Caesars Sportsbook MI has been steadily closing the gap in 2022.
Since its launch, Caesars has only accounted for a market share of 6.48% in the online handle market. However, in 2022, Caesars managed to surpass Barstool by generating a handle of $341.3 million, compared to Barstool’s $339.8 million for the entire year.
What Year 2 brought Michigan online sports betting
It was evident that surpassing the news value of its inaugural year would be a challenging task for the second year of online sports betting.
Nevertheless, significant moments transpired throughout the past 12 months.
Two new online operators emerged in Michigan.
Eagle Casino & Sports was the initial establishment to launch in the online realm, belonging to Soaring Eagle Casino & Resort. On April 14, its digital platform made its debut, becoming the fifteenth and ultimate online casino and sportsbook operation to go live at that moment. This completion of launches occupied all the licenses currently available in Michigan.
Since its launch, Eagle Casino & Sports has experienced a monthly growth in online handle for the initial eight months, resulting in a cumulative total of $12.3 million in online handle within its first nine months of operation.
SI Sportsbook MI launched as the second sportsbook in 2022, following the closure of TwinSpires online sportsbook and casino in Michigan on Sept. 6. As a result, the Hannahville Indian Community had to find a new online partner for Island Resort & Casino.
After the new partnership was established, SI Sportsbook was promptly launched. However, it solely functions as an online sportsbook, thereby creating an opportunity for Island Resort & Casino to obtain an online casino license and complete their offerings.
Since its launch, SI Sportsbook has experienced consistent growth in its online handle. In November, it generated $1.3 million, followed by a higher total of $1.66 million in December. This marked Hannahville’s highest handle since November 2021 when it was under TwinSpires.
In 2022, sportsbooks have introduced a fresh feature that enables users to initiate the stacking of same game parlays.
Previously, players were unable to combine multiple picks from one game with another game to create a parlay, although parlays have always been available as an option.
Currently, online bettors have the opportunity to construct multiple SGP’s, thus amplifying the odds even further for a significant sports event.
