Michigan Sportsbooks Roll Public for $59 Million in September Revenue

The Michigan Gaming Control Board reported $59.2 million in overall gross sports betting revenue for September, the second-highest total in state history as operators combined for a lofty 11.3% hold.

The state agency released online wagering figures Thursday, while retail numbers had been released earlier. The revenue total trails only the $65.9 million claimed last December and marked the sixth time in 51 months that gross winnings topped $50 million.

It was a 29.8% increase from last September, easily outpacing the 10.1% rise in handle to $523.8 million. Revenue was more than double the $29.1 million reported for August, with handle surging 80.8%. It was the ninth time the Wolverine State cleared one-half billion in handle as overall betting topped $17 billion since launch in March 2020.

The state levied taxes on only $28.3 million in adjusted revenue as mobile sportsbooks typically upped their promotional offers in sync with the start of football season. Aside from BetMGM's massive write-off in June, it was the first time AGR was less than 50% of gross revenue since it totaled 42.1% in February.

The state collected nearly $1.5 million in tax revenue, with the city of Detroit receiving a separate $570,400. Michigan has claimed $12.4 million in sports betting taxes the first nine months of 2024, up nearly $1.4 million from the same span last year.

Sportsbooks Enjoy September as Much as Local Teams

The haul by Michigan sportsbooks for September is somewhat surprising considering the success of the Detroit Tigers and Detroit Lions. The Tigers went 17-8 in September as they made a late charge to a wild card spot in the AL Central, while the Lions opened a season of high expectations with a 3-1 record. Operators, though, likely cashed in on defending national champion Michigan losing 31-12 to then-No. 3 Texas at home Sept. 7.

Overall, it was the fourth time in five months the state's 12 mobile operators combined for an 11% or higher hold, this time doing so on $501.7 million handle to reap $58.4 million in gross revenue.

FanDuel led the charge with $24.4 million, attaining a 13.5% win rate from $180.1 million worth of wagers. It was the seventh consecutive month with a double-digit hold, and it was the fifth time in that span over 13%. The digital juggernaut also eclipsed $600 million in all-time winnings in Michigan with an eight-figure total for the tenth straight month.

DraftKings narrowly missed an all-time high in winnings with close to $17.4 million, falling $94,500 shy of its mark set last December. It had an 11.2% hold on $155.9 million handle as it edged over $1 billion in wagers for the calendar year.

BetMGM had its best month dating to March 2023 with $9.3 million in winnings, crafting a 12.4% hold from $74.9 million worth of bets placed. It has notched an 11% hold or better each of the last three months, lifting the overall win rate to 9.8% for the year to reap $48.3 million.

All three operators took substantial deductions for promotional play in September — DraftKings reported $5.8 million in AGR, a spread of $11.6 million; FanDuel had a spread of $10.2 million with $14.2 million in taxable winnings; and BetMGM reported nearly $4.5 million in deductions. BetMGM still has a year-to-date AGR of minus-$20.9 million after its $48.2 million write-off in June.

In a scene playing out similarly across other states, Caesars, Fanatic Sportsbook, and ESPN BET all vied to be the best of the rest. That honor went to Fanatics for revenue with close to $2.8 million as it had its best month since succeeding PointsBet in late February. Fanatics had an 11.6% hold on $23.9 million handle, and a good portion of its winnings were subject to deductions — it claimed just $213,200 in AGR.

Caesars had the highest handle of the trio at $26.3 million, with ESPN BET close behind at $25.7 million. Both sportsbooks had a hold just below 7%, and the $1.8 million reported by Caesars was $38,900 more than ESPN BET. Caesars also reported less in deductions, totaling $1.1 million in AGR while ESPN BET topped $1 million by $38,700.

Retail Books Busy with Little to Show for It

Detroit's three retail sportsbooks accepted $22 million in bets, up 21.8% from last year, but the betting public largely kept the trio in check as they combined for only $771,800 in revenue and a 3.5% hold. MGM Grand was the only book to make. any noise, notching a 12.9% win rate in keeping $601,600 of the $4.7 million wagered.

MotorCity Casino had a tough September, coming out only $28,200 ahead on $7.6 million worth of wagers for a meager 0.4% hold. Hollywood Greektown led the three with $9.7 million in handle, but its win rate was not much better just below 1.5%, resulting in $141,900 in revenue.