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With a strong 12.1% hold in February, Michigan’s sports betting operators saw a 54% increase in total revenue year over year. It was one of the most lucrative months in recent memory, according to the state’s operators, despite a drop in betting volume.
During Super Bowl month, commercial and tribal sportsbooks generated $46.8 million in gross revenue, according to the Michigan Gaming Control Board (MGCB). The greater hold rate resulted in larger earnings even though betting volume dropped to $388.1 million, a 6.7% decrease from the previous year.
Notably, roughly $380 million was processed by online bookmakers, a 31.6% decrease from January. In the meantime, a $8.2 million handling brought in over $820,000 for the state’s three retail operators. The state received a $1.5 million tax contribution on the $28.1 million in adjusted operator revenue.
Among mobile sportsbooks, FanDuel continued its dominance. The operator reported a $142.9 million handle and a 16.6% hold, securing over $23.7 million in gross revenue. Despite a drop of $75 million from January, the Super Bowl played a major role in sustaining profits.
DraftKings followed closely, generating $12.8 million in revenue with a handle exceeding $100 million. BetMGM recorded a $54.7 million handle, though its lower hold of under 9% limited earnings to $4.9 million.
Fanatics Sportsbook saw a $24.7 million handle and earned $2.2 million, while ESPN BET brought in $1.7 million from $18 million in wagers. However, Caesars Sportsbook faced a rare setback, losing nearly $79,000 despite a $19.7 million handle.
The combined performance of January and February marked the most successful start to a year since Michigan launched online sports betting in 2021. Operators amassed over $132 million in just two months, significantly surpassing the previous year’s first-quarter earnings.
Although betting activity decreased by 5% from the same period last year, a remarkable 65% revenue increase was achieved due to higher win rates. For the first time, Michigan operators recorded consecutive months with a hold of at least 12%.
In contrast to the sports betting sector, Michigan’s iGaming market experienced a downturn. The MGCB reported $222 million in online casino gaming revenue for February, a 10.5% decline from January’s record-breaking $248.2 million. This drop ended a four-month streak of record-setting earnings.
However, adjusted revenue still climbed 23.6% year-over-year to $209.1 million, contributing over $42 million in state taxes. With the continued strength of both the sports betting and iGaming sectors, Michigan remains a key player in the U.S. gambling industry.