In a First, Online Casino Revenue Crosses $100M Mark in Michigan

BetMGM MI continues to dominate in online casino revenue as sports betting handle hit a near-record $354.3 million in September.
In a First, Online Casino Revenue Crosses $100M Mark in Michigan
By
October 20, 2021

Online casino revenue in Michigan increased 5.3% to hit a record $102.4 million in September, according to data from the Michigan Gaming Control Board (MGCB).

It was also the first time the young market crossed the $100 million threshold. One driving factor may have been the availability of live dealer games, which started in August.

The record high for revenue includes poker because the MGCB doesn’t separate it from other online casino games. Because of this, poker’s contribution to the final total is unknown.

BetMGM Casino MI posted record revenue, $40.6 million, and continued to dominate the market. It was the operator’s second consecutive month with record revenue, reaching $39.7 million in August.

DraftKings Casino MI and FanDuel Casino, the market’s second- and third-largest operators in terms of revenue, also had a better September, but were still far behind BetMGM.

While DraftKings reported $15.5 million in revenue, FanDuel had $15.4 million. Those figures were up from $12.6 million and $14.2 million, respectively.

Together, BetMGM, DraftKings and FanDuel represented about 70% of the market. The rest of the 11 operators in the state combined for the remaining 30%, down from 31.5% in August.

Of course, the entire market dynamic is likely to change dramatically once WSOP MI launches in the state. An exact date for the launch is still unknown.

Penn Sports/Barstool sees increase

Among the mid-tier operators, only Penn Sports/Barstool managed to increase its revenue and market share in September. The operator’s revenue jumped 55% to $3.9 million, up from $2.6 million, while its market share increased to 3.9%, up from 2.6%.

The mid-tier operator that suffered the sharpest loss in revenue and market share was Golden Nugget. It saw its revenue fall 12% to $4.7 million, down from $5.3 million in August.

FoxBet/PokerStars, Rush Street Interactive (aka BetRivers Casino MI), and Wynn, all considered mid-tier, posted $2.9 million, $6.7 million and $4.5 million in September revenue, respectively.

Three of the six smallest operators in Michigan were relatively flat in September. From biggest to smallest, Pala Interactive, TwinSpires and Firekeepers posted revenue of $2.4 million, $1.3 million and $1.1 million, respectively.

William Hill, owned by Caesars, and Parx Interactive bucked the flat trend among the smallest operators and made sharp increases in revenue. William Hill climbed to $1.4 million in September, up from $822k in August, while Parx reeled in $1.6 million, up from $1.3 million. Their market shares increased to 1.3% and 1,6%, respectively.

Things went south on PointsBet in September. Four months after peaking at $612k in May, the operator had revenue of just $294k in September, down from $508k in August.

PointsBet remained the state’s smallest operator for the second consecutive month. That title was held by William Hill back in July, but the Caesars-owned operator now has revenue above three competitors: TwinSpires, Firekeepers and PointsBet.

NFL season drives sports handle

Online sports betting revenue in September jumped to $23.7 million, up from $15.9 million in August, the third-lowest month on record. Meanwhile, the sports betting handle exploded for a near-record $354.3 million, nearly besting the record of $359.4 million set back in March.

The increase in handle was not unexpected, as the opening weeks of the NFL season took place during the month.

BetMGM Sportsbook MI and FanDuel Sportsbook MI held the lion’s share of the market and revenue in September, at $8.8 million and $7.2 million, respectively. Together, the pair combined for a commanding 67% share of the market.

DraftKings Sportsbook MI was a distant third at *$3 millio*n in revenue and a 12.7% share of the market. Penn Sports/Barstool and PointsBet were next at $1.6 million and $1.5 million.

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