Michigan sports betting figures skewed by BetMGM deductions in June – iGaming Business

While Michigan posted strong year-on-year growth in online gross gaming revenue (GGR) in June, hefty promotional deductions attributed to BetMGM meant adjusted sports betting revenue swung to a loss for the month.

Total online gambling gross receipts, across the states tribal and commercial licensees, hit $214.1m in June, figures from the Michigan Gaming Control Board (MGCB) show. This was generated almost entirely from online casino, which accounted for $183.2m of the total. A further $30.9m of revenue came from sports betting, from $276.8m in stakes, an 11.2% hold.

June, with only Major League Baseball (MLB) in action, is traditionally a quieter month for US sports betting. However, Michigan sports betting operators, as in many other states, reported strong year-on-year growth in player wagers. Handle was up 21.4% from June 2023 to $276.8m.

A hefty promotional deduction for BetMGM meant adjusted revenue for sports betting fell to negative $28.2m, compared to $9.2m in revenue for June 2023. This was down to a $48.2m deduction for BetMGM.

There is currently not much clarity as to what this relates to, although the size of the deduction suggests it is an accumulation of promo spend over a long period. The operator tends to adjust by $1m to $2m in a normal month. That $48.2m figure also tallies with monthly revenue in some of the biggest sports betting states.

As a result adjusted revenue was down 6.6% year-on-year at $136.4m, wiping out a 20.2% increase for igaming revenue to $164.6m.

BetMGMs handle of $40.5m and gross revenue of $3.6m puts it among the states best performers in June for sports betting, with an 8.9% hold.

FanDuel remains the leader by far, with customers wagering $96.2m, resulting in gross revenue of $14.8m. It reported $4.4m in adjustments for the month, incidentally.

DraftKings followed in second, reporting handle of $82.8m, with a 10% hold leaving gross revenue of $8.3m. Penn Entertainments ESPN Bet reported $16.2m in handle, resulting in GGR of $1.4m, ahead of Caesars on $15.2m and GGR of $817,747.6.

While customers staked less with Fanatics, which took over PointsBets Michigan operations in February, a better hold percentage of 10.2% meant it generated more revenue than Caesars. Fanatics players wagered $13.0m resulting in gross revenue of $1.3m.

While it posted a heavy loss for June in sports betting, and potentially cleared its tax liability for the year, BetMGM enjoyed a far stronger month in Michigans icasino vertical. GGR of $47.9m set it ahead of the competition which, coupled with minimal deductions resulting in AGR coming to $43.1m, meant it continued to lead the market.

FanDuel followed in second place, with GGR of $45.6m ($40.7m AGR) and DraftKings in third on $32.5m ($29.3m after adjustments).

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Michigan sports betting figures skewed by BetMGM deductions in June - iGaming Business