Despite Michigan sports betting handle falling 11.5% in the first quarter to $1.27 billion compared to last year, operator revenue is on the rise.
March provided the highest revenue month in 2023 at $46 million, bringing the first quarter total to nearly $103 million. The $3.75 million in Michigan sports betting taxes this year is a 30.7% increase compared to the first three months of 2022.
The drop in handle and rise in revenue suggests a shift in focus toward profitability rather than handing out huge promotions to acquire customers.
Handle rebounds in March
According to figures released Tuesday by the Michigan Gaming Control Board, Michigan sports betting handled more than $421.6 million in March, an 18% increase from last month. It was, however, a nearly 12% drop over the same month the previous last year.
The bump in Michigan sports betting handle from February ($357.2 million) is to be expected given March Madness betting.
The Michigan State Spartans‘ run to the Sweet 16 likely helped as well. Michigan does not restrict betting on in-state college teams.
Nearly 97% of all MI sports betting dollars were spent online.
National leaders atop MI sports betting, too
FanDuel Sportsbook handled more than $150 million in bets last month to top the Michigan sports betting market. DraftKings Sportsbook was second, handling $101.1 million.
BetMGM handled just over $80 million combining online and retail sports betting and posted monthly revenue north of $10 million.
FanDuel claimed 36% of the market, while its $49 million advantage over DraftKings last month is the largest gap between the two so far in 2023.
Has MI sports betting reached its peak?
The Great Lakes State ranked No. 13 in per-capita handle in 2022, despite being the fourth most populated state with legalized sports betting. LSR projections suggest we have likely seen the top of the Michigan sports betting market, at least for now.
The monthly handle declined slightly throughout the bulk of NFL betting and college football betting season.
- October 2022: $504.3 million
- November 2022: $498.1 million
- December 2022: $494.8 million
- January 2023: $490.9 million
The high-water mark for MI sports betting handle was $532.6 million in January 2022.
