Michigan Sports Betting Revenue Takes a Hit in December
Michigan’s sports betting market experienced a sharp decline in December 2024, with total sports betting revenue dropping to $20.2 million, down from $58.3 million in November. Adjusted gross receipts from online sports betting fell even further, reaching just $267,881, a staggering 99.3% decrease compared to the previous month.
Meanwhile, the total handle remained strong at $597.7 million, though it marked an 8.1% decrease from November’s $650.2 million. A low hold rate of 3.38% was a key factor behind the revenue slump.
Performance of Michigan’s Leading Operators
Michigan’s top sportsbooks recorded varied performances in December, with hold rates significantly influencing their revenues:
FanDuel:
- Handle: $235.5 million
- Gross Receipts: $7.2 million
- Hold Rate: 3.06%
DraftKings:
- Handle: $162.9 million
- Gross Receipts: $5.99 million
- Hold Rate: 3.68%
BetMGM:
- Handle: $85.9 million
- Gross Receipts: $3.15 million
- Hold Rate: 3.67%
Fanatics Sportsbook
- Handle: $34.8 million
- Gross Receipts: $1.6 million
- Hold Rate: 4.60%
ESPN Bet:
- Handle: $31.1 million
- Gross Receipts: $458,099
- Hold Rate: 1.47%
Caesars Sportsbook:
- Handle: $28.5 million
- Gross Receipts: $1.2 million
- Hold Rate: 4.21%
Why Revenues Fell
The sharp drop in December revenues for Michigan’s sports betting market can largely be attributed to a combination of lower hold rates and player-friendly results.
The average hold rate for the month was just 3.38%, significantly lower than the previous month. This meant sportsbooks retained a much smaller portion of the total wagers placed.
Player success played a major role, particularly in NFL games, where favorites performed well. These outcomes resulted in higher payouts, cutting deeply into operator profits. The seasonal sports calendar also contributed to the decline.
November featured marquee events like Thanksgiving NFL games, which drove higher betting activity. By contrast, December had fewer high-profile matchups, leading to an 8.1% drop in total handle, further limiting revenue opportunities.
A Strong Market Despite Challenges
Although revenues fell, Michigan’s sports betting market remains robust. A total handle of $597.7 million shows continued player interest and engagement. Heavyweights like FanDuel, DraftKings, and BetMGM dominated the market, collectively accounting for the majority of wagers placed in the state.
Recommended