September Sports Betting in Michigan Sees Profits Fall By 25%

In September, Michigan’s sportsbooks generated a gross revenue of £44.4 million, marking a 25% decrease compared to the same month last year. This decline comes despite a £537.9 million handle, which saw a modest increase of 2.7% from September 2024. The figures suggest that while more money was wagered, the profitability for operators has taken a hit.

Key Figures

• Gross Revenue: £44.4 million
• Year-over-Year Decrease: 25%
• Total Handle: £537.9 million
• Month-over-Month Revenue Drop: £6 million

The combination of the NFL season kickoff, the full month of college football, and the conclusion of Major League Baseball’s regular season typically boosts betting activity. However, the anticipated profits did not materialise as expected.

Factors Behind the Revenue Decline

Several factors contributed to the downturn in revenue for Michigan’s sportsbooks in September, the hold percentage, which indicates the amount retained by sportsbooks from the total wagers, fell to 8.2% in September. This is a stark contrast to the 11.3% hold recorded in the same month last year.

Performance of Major Operators

Among the major players in the market, DraftKings faced significant challenges. The operator reported an adjusted gross revenue of only £10.6 million from a handle of £165.6 million, failing to meet the industry standard win rate of 7%.

Retail Sportsbook Struggles

While online betting continues to dominate, retail sportsbooks in Detroit also faced difficulties. The three retail locations collectively generated £13.6 million in revenue, but Hollywood Casino at Greektown reported losses exceeding £236,000.

The decline in sportsbook revenue has significant implications for tax revenue in Michigan. In September, sportsbooks contributed only £805,220 in tax revenue, bringing the year-to-date total to nearly £15 million.

FanDuel emerged as the top performer, with a handle of £180.6 million and a gross revenue of £18.2 million. Despite a slight increase in handle from the previous year, the revenue fell by over £6 million, indicating a challenging environment for all operators.

While sports betting faced challenges, the iGaming sector in Michigan showed resilience. In September, iGaming profits surged by 28% year-over-year, reaching £259.1 million.

iGaming Performance

• Total iGaming Revenue: £259.1 million
• Adjusted Gross Revenue: £243.4 million
• Year-to-Date Total: £2.1 billion