The Michigan Gaming Control Board reported on Thursday that total adjusted sports betting revenue across the state was minus-$28.2 million for June 2024, a deficit it put down to BetMGM Sportsbook claiming $48.2 million In free play deductions from promotional bonuses and credits.
As a result of the deduction, although BetMGM’s June handle was $40.5 million and its gross gaming revenue amounted to $3.6 million, its AGR was minus-$45.7 million.
BetMGM had only redeemed some of its allowable free play deductions, although it’s not been confirmed for how long it had not been taking the full amount. There is no timeline dictating how long a deduction period can span, and mobile sportsbooks in Michigan are entitled to carry over AGR losses until leveling out the balance.
Comparing other sportsbooks in Michigan with BetMGM, FanDuel appeared to have the next-largest promotional credit deductions total at around $4 million, less than 10% of BetMGM’s. DraftKings‘ was around $3 million. Proportionally speaking, Fanatics Sportsbook continues to spend heavily on promotions and deductions since taking over from the departed PointsBet. Although its GGR for June was $1.3 million, its AGR was just over $327,000.
BetMGM deduction aside, sportsbooks make hay
The BetMGM deduction completely warped the numbers in what was a pretty good month for Michigan’s online sportsbooks.
Total online and mobile sports betting handle was $276.8 million, up 21.4% from June 2023. Gross gaming revenue amounted to $30.9 million, a huge jump of 68.8% year-over-year. Sportsbooks averaged an 11.2% hold in June 2024, more than 3.5 percentage points higher.
FanDuel took $14.8 million in revenue from its $96.2 million in handle thanks to a 15.3% hold, its best win rate of the year so far and highest since May 2023. DraftKings’s $82.8 million handle yielded $8.3 million at a shade over 10% hold, triple its win rate this time last year. Those numbers took DraftKings over $4 billion in all-time handle in the state.
ESPN Bet continues to settle into its foothold in Michigan. It took $16.2 million in bets and exceeded 8% hold for the third month in a row, reaping $1.4 million in revenue. Fanatics took over $1.3 million in GGR for the third month out of the last four, from a June handle of just under $13 million.
Michigan iGaming setting record pace
Meanwhile, online gaming in Michigan has never been so lucrative.
Year-to-date iGaming revenue in the state is above $1 billion after just half of the year, the fastest pace it has ever set by some distance. Online gaming operators have earned $1.16 billion so far in 2024. The previous halfway-point record was $935 million last year.
Year-over-year, June’s revenue total of $183.2 million was up 21.3% from last year.
BetMGM continues to lead the way, beating FanDuel on revenue by $47.9 million to $45.6 million. DraftKings Casino became the third operator in Michigan history after that duo to eclipse $1 billion in lifetime iGaming revenue despite its $32.5 million in revenue in June representing its worst month of the year.
All told, Michigan’s all-time iGaming revenue is closing in on $6 billion.
