BetMGM’s Deduction Hugely Impacts Michigan’s June Sports Betting Revenue
The Michigan Gaming Control Board announced a striking $28.2 million negative adjusted gross sports betting revenue for June, largely due to a substantial $48.2 million free play deduction claimed by BetMGM.
Comparison to Pennsylvania
Despite the deduction, Michigan’s operators had a profitable month, reporting $31.8 million in gross winnings, resulting in an 11.2% hold on a $285.2 million handle.
Gross revenue in June 2024 showed a 77.4% increase compared to June 2023, primarily driven by a nearly 3.6 percentage point increase in the hold rate.
However, the handle experienced a 19.6% decline from May’s $354.8 million, with gross winnings also dropping by 25.6%.
Impact of BetMGM’s Deduction
BetMGM’s deduction caused a $57.3 million negative swing in overall adjusted gross revenue from May to June among state operators.
Excluding this deduction, taxable revenue amounted to $17.5 million, resulting in $1.2 million in state taxes.
A spokesperson for the Michigan Gaming Control Board (MGCB) explained that the online operator has only used a portion of its allowed deductions for free play since the launch of online sports betting in Michigan. There was no specified timeline for the period of these deductions, suggesting a potentially ongoing impact on state revenues.
Recommended