Michigan sports betting revenue up in February

In February, Michigan experienced a robust 50.8% year-on-year increase in gross online sports betting receipts, despite a noticeable decrease in player spending. The state also shared promising growth figures within its iGaming sector.

During this month, the combined gross receipts from online casinos and sports betting reached an impressive $268.5 million (£206.4 million/€246.0 million). This marks a 22.9% increase compared to the previous year but reflects an 18.9% decline from January’s totals in Michigan.

According to data released on March 18 by the Michigan Gaming Control Board, the adjusted totals for February revealed total adjusted gross receipts—after accounting for promotional spending—were $236.3 million. This represents a significant 29.8% year-on-year increase, although it is 17.9% lower compared to January’s figures.

Mixed Results in the Sports Betting Arena

Delving into the specifics, sports betting gross receipts amounted to $46 million, up from $30.5 million in February of the previous year. Furthermore, adjusted gross sports betting receipts saw a remarkable 110.9% year-on-year increase, totaling $27.2 million.

However, player expenditure, or “handle,” for the month totaled $379.8 million, reflecting a notable 31.6% decrease compared to February 2024.

When analyzing hold percentages, the monthly figure based on gross receipts stood at 12.11%. In contrast, with adjusted gross sports betting receipts, the hold decreased to 7.16%.

Among the top operators, FanDuel and MotorCity Casino maintained their competitive edge, reporting gross receipts of $23.7 million from a handle of $142.9 million, resulting in a monthly hold of 16.59%.

In the second position, DraftKings and the Bay Mills Indian Community recorded gross receipts of $12.9 million from $106.6 million in handle, yielding a 12.1% hold. Meanwhile, BetMGM along with MGM Grand Detroit took third place with $4.9 million sourced from a $54.7 million handle, equating to an 8.96% hold.

Impressive Year-on-Year Growth in iGaming

iGaming proved to be a major contributor, accounting for $222.5 million in gross receipts, which is an 18.4% increase year-on-year. The adjusted gross receipts for iGaming also saw a robust 23.6% uptick compared to February of the previous year.

FanDuel and MotorCity Casino asserted their dominance in the iGaming market in February, posting gross receipts of $61.7 million, with adjusted gross receipts reaching $58 million.

BetMGM and MGM Grand Detroit, who led in January, declined to second place with gross receipts of $60.3 million and adjusted gross receipts of $56.7 million. DraftKings and the Bay Mills Indian Community rounded out the top three, posting $27.8 million in total gross igaming receipts with adjusted receipts echoed at $26.1 million.

Overall, operators contributed a total of $43.8 million in taxes to the state in February; this included $42.3 million from iGaming and $1.5 million from sports betting taxes and fees. Furthermore, Detroit casinos contributed $12.1 million, while tribal operators provided $4.7 million to governing bodies.

Challenges for Detroit’s Land-Based Casinos

Meanwhile, the Michigan Gaming Control Board revealed data regarding the three commercial casinos in Detroit. The combined revenue from slots, table games, and retail sports betting was reported at $98.8 million for February, down 5.5% from the previous year and 5.7% lower than in January.

Revenue generated from table games and slots totaled $106.4 million, marking a 6.4% decline compared to the prior year. Nevertheless, sports betting revenue rebounded from a loss in 2024, resulting in a positive figure of $820,450. With total player spending of $8.2 million, this led to a monthly hold of 10.01%.

MGM Grand Detroit maintained the largest market share at 47%, followed by MotorCity Casino at 29%, and Hollywood Casino at Greektown with 24%.

In terms of taxation, the casinos paid $7.9 million in state gaming taxes along with $11.7 million to the city of Detroit for casino operations. Additionally, a further $30,828 in sports betting taxes was allocated to the state, with $37,679 directed to Detroit.