Michigan Sportsbooks Post Fifth Straight Double-Digit Hold

The Michigan Gaming Control Board reported Tuesday that sportsbooks combined for a hold of just over 10% for August, the fifth consecutive month it reached double digits.

The month's wagering activity was made complete after the state agency released online sports wagering totals for August. While digital sportsbooks made up the bulk of the gross revenue — $27.4 million of the overall $29.1 million — the 17.6% win rate from Detroit's three retail counterparts while collecting $1.7 million pushed the overall hold above 10%. The five-month streak of 10%-plus holds is the longest in Wolverine State history since the first retail bets were placed in March 2020.

The $289.7 million handle was up 26.8% from last year, with some of that increase likely coming from increased futures action for both the Detroit Lions and defending College Football Playoff champion Michigan Wolverines. The Lions reached the NFC title game last season and are trying to repeat as division champions for the first time in the Super Bowl era, while the Wolverines can still make the newly expanded 12-team College Football Playoff despite an early season loss to Texas.

Gross sports betting revenue was up 23.7% from 12 months prior and practically flat compared to July, as Michigan became the ninth state to surpass $1.5 billion in gross revenue in the post-PASPA era. The state was eligible to levy taxes on $18 million in adjusted gross revenue, redirecting $938,500 into state coffers as all-time tax revenue surpassed $50 million. The city of Detroit received $365,300 in separate levies for August.

BetMGM Snags Top Spot for Hold at 11.3%

FanDuel usually serves as the bellwether for a state's hold based on its status as marketplace leader, more so for its usual strong performances in parlay and same game parlay offerings. But BetMGM sustained its momentum from a strong July to lead Michigan's 12 online sportsbooks with an 11.3% win rate to claim $4.6 million in gross revenue from $41.2 million handle.

That lifted its overall hold for the year to 9.3%, which is tracking to be nearly two-thirds of a percentage point higher than 2023. BetMGM did not pay state taxes for a third consecutive month following its massive $48 million promotional deduction taken in June, and it still has an AGR of minus-$25.8 million for the 2024 calendar year.

FanDuel was not far behind with a hold of 11%, its sixth straight month in double figures. It paced all digital operators with $11.1 million in revenue and surpassed $5 billion handle in Michigan after accepting $101 million worth of bets in August. FanDuel has reached eight figures in gross revenue for nine consecutive months.

DraftKings had a three-month run of double-digit holds come to an end but still crafted a strong 9.7% win rate in claiming $7.6 million in winnings from $78.1 million handle. That was also enough to clear $300 million in all-time revenue, with $182.2 million coming since January 2023.

Caesars grabbed the fourth spot for handle, taking $18.4 million worth of bets, but it was kept under $1 million in revenue for a third straight month as a 4.9% hold resulted in $901,500 in winnings. Both Fanatics Sportsbook and ESPN BET bypassed Caesars into seven figures, with Fanatics reaping $1.3 million with a 7.6% win rate against $16.5 million handle and ESPN BET landing just shy of $1.1 million after attaining a 7.7% hold from $14.2 million worth of accepted wagers.

ESPN BET also has not paid any state taxes since its mid-November launch replacing predecessor Barstool Sportsbook for PENN Entertainment. It has an AGR of minus-$10.2 million but erased roughly one-third of its operating deficit following a heavy spend from November through February.

BetRivers had its highest hold in 13 months at 9.8% to claim $611,700 in revenue from $6.2 million handle. It also finished with a positive AGR for the first time since March at $324,400, which more than zeroed out its reported $236,600 in losses from April through July.

Firekeepers was the only digital sportsbook to report a loss in gross revenue for August as bettors pocketed $7,400 on top of the $879,900 wagered. It was the second losing month this year for Firekeepers, but the loss was far lighter than the $76,800 loss posted in February.

BetMGM Deduction Skews AGR Comparison

Most year-to-date numbers compared to 2023 are showing solid gains through the first eight months. Handle is up 20.5% to $3.12 billion, while gross revenue is up 24.4%, with the 9.6% hold three-tenths of a percentage point higher.

BetMGM's writeoff, however, has contributed to statewide AGR being down 14.7% to $127.2 million. The state is still ahead when it comes to tax revenue, though, with the $10.9 million in receipts running $1.2 million ahead of last year's pace.