Michigan Registers Record in October Online Wagering
The trend of setting new sports wagering state records in October was confirmed in Michigan after the internet gaming and online sports betting monthly report released by the Michigan Gaming Control Board (MGCB) revealed a handle of $463.3 million.
New Online and Cumulative Record
The October total Internet gaming and online sports betting handle comprehensively beats the state’s previous online wagering record of $359.5 million set in March, just two months after the official online sports betting launch, and represents a 30.8% increase on the September results.
The online handle added to the previously announced $34.2 million in retail wagers across commercial casinos in Detroit sets a new cumulative state record of $497.5 million, surpassing the previous best result posted in September, $386.8 million.
Michigan followed in the footsteps of New Jersey and Pennsylvania, which also reported record sports betting numbers, $1.3 billion and $425.9 million in sports bets in October, the month featuring five football weekends and the first full month in the NFL.
According to the aggregate report for all 14 authorized online operators in October, combined total adjusted gross receipts and adjusted gross sports betting receipts, which account for the monetary value of free play incentives, were $103.6 million, $98.9 million from iGaming and $4.7 million from online sports betting.
The state received in taxes and payments $20.8 million, comprised of $20.3 million of taxes from Internet gaming and $552,907 in taxes and payments from sports betting.
Commercial casinos pay 8.4% tax on internet operations, divided 70% to 30% between the state and the city of Detroit, while tribal operators pay 8.4% on the adjusted gross sports betting receipts. The three casinos in Detroit paid $5.9 million in city wagering taxes and municipal services fees, $5.5 million from Internet gaming and $354,113 from sports betting, while tribal operations reported $2.3 million in payments to the tribes’ governing bodies.
Change at the Top
Among operators, FanDuel came first in online sports betting handle with $124 million, representing a 26.8% share of the total. FanDuel managed to take the leading spot from its major competitor DraftKings which topped the rankings for the last two months. DraftKings accounted for $120.4 million in online bets, 26% of the total. BetMGM, with $102.2 million, or 22.1% market share, ranked third.
The 14 online sportsbooks accounted for $24.3 million in gross revenue, representing the second-lowest percentage hold, 5.2%, since January. When added to the $2.6 million of revenue generated from retail wagering, Michigan operators ended October with a total of $26.9 million, down 0.7% compared to September.
Winners in October were Michigan players who benefited from sportsbooks’ heavy promotional spend that impacted their bottom line.
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