We only have 10 days of data but online sports betting in Michigan looks ready to fight for a top-five spot in the US.
That compares to $35.7 million reported for retail handle earlier in the month. That puts total handle for the full month at $150.8 million.
The state’s 11 live online sportsbooks were definitely promo-heavy during launch period. While gross sports betting revenue was $13.3 million, adjusted revenue – which allows operators to deduct customer promos – was a loss of $5.2 million. That means operators deducted $18.5 million in promotions for the 10-day period.
No doubt that iGaming aided the strong online debut, which had $29.4 million in gross revenue over the 10-day period. It’s the first time a US jurisdiction launched online sports betting and iGaming together.
Top Michigan sports betting operators, and then the rest
One thing seems clear even after 10 days: the top four operators have a lot of cushion from the rest of the field.
|Operator||Handle||Gross Revenue||Adjusted Revenue||Gross hold||Adjusted hold|
They also accounted for $17.6 million in deducted promos, or 95.1% of the total.
Barstool sees solid online Michigan sports betting signup
Penn National gave additional detail on Michigan’s first 10 days during its year-end earnings call last week.
The Barstool Sportsbook app had 48,400 registrations and 26,200 first-time depositors from launch through the end of the month, detailed in the company’s earnings presentation. Those bettors wagered $27.5 million in handle with $3.3 million in gross revenue for a 12% hold.
Those figures definitely got a boost from efforts surrounding the Barstool Fund, which is raising cash for small businesses. If Michigan bettors deposited and wagered, Penn matched that amount as a donation.
Snowden called the results encouraging and noted high engagement with Barstool Sportsbooks’ exclusive content. Nearly half of all of Michigan’s customers bet on Barstool-exclusive bets.
Stats from first weekend top Pennsylvania launch
Michigan’s first weekend saw stronger metrics than Pennsylvania‘s launch weekend, even with the PA sports betting launch coming during the NFL regular season.
Michigan had 24,445 registrations that converted to 18,946 first-time depositors betting $13.698 million. That’s compared to 21,865 Pennsylvania registrations and 11,294 first-time depositors which bet $8.137 million.
The increased social media push around the Michigan launch actually boosted Pennsylvania as well. The PA app saw registrations jump 99% over the prior week after Michigan went live.
Online casino sees quick start, too
Penn’s Barstool-branded online casino debuted in Michigan Monday and is seeing positive momentum.
More than 15% of Michigan’s online sportsbook customers gambled on the online casino in the first three days. That’s close to hitting internal targets already, Snowden said.
Penn’s mychoice rewards program is now integrated into both the sportsbook and iGaming app. That will give customers the chance to earn and redeem loyalty points at Penn’s casinos and with Barstool.
Sub-$200 Michigan sports betting acquisitions for MGM too
MGM Resorts didn’t miss an opportunity to call out BetMGM’s thrifty customer acquisitions on its year-end call, either.
The brand signed up 138,000 new customers in the 10 days Michigan’s iGaming and online betting markets were live in January. Gaming revenue over those 10 days was $13 million, with the $1.3 million daily average higher than in New Jersey, where BetMGM is the top operator for iGaming.
Hornbuckle specifically called out customer acquisition costs below $200 in Michigan as well:
“BetMGM’s key competitive advantage is its ability to lever MGM’s destinations, our broad-based experiential offerings, and our Mlife loyalty program as efficient and effective customer acquisition tools. Once engaged, we know that omni-channel customers have vastly greater value to our company than single-channel customers.
“And again, while we’re still in the early days in Michigan, we are already proven this out. We are currently seeing customer acquisition costs below the $200 range.”
He also called the convergence between BetMGM and Mlife monumental, noting 17% of BetMGM’s signups came from MGM while 39% of new Mlife signups were from BetMGM in the fourth quarter.