Michigan Online Casino Revenue Up in July, But Sports Betting Craters

Michigan Online Casino Revenue Up in July, But Sports Betting Craters

Revenue from Michigan online casinos rebounded 3.5% to $92.3 million in July, according to data from the Michigan Gaming Control Board (MGCB).

The July rebound appears to be largely driven by the addition of a 14th operator, FireKeepers Casino, which began reporting limited online revenue in June. MGCB data show July was also the fourth month where online revenue eclipsed the $90 million mark.

Overall gross revenue figures include online poker, but since the MGCB does not separate poker from overall casino revenue, the game’s contribution to the final total is not known. PokerStars MI and BetMGM Poker MI are the only two operators licensed to provide online poker in the Wolverine State, but they are expected to be joined by WSOP MI soon.

BetMGM MI, the state’s lead online casino operator, saw its revenue flatten in July. The second- and third-largest operators in the state, DraftKings and FanDuel, also had flat revenues, but all three operators lost market share to FireKeepers and several other middle tier operators.

BetMGM MI had revenue of $33.8 million for the second consecutive month but it’s market share slipped to 36.5%, down from 38% in June. DraftKings had $15.2 million in revenue and a 16.5% share of the market in July, down from $15.5 million and 17.5% in June.

Meanwhile, FanDuel generated $14.4 million in revenue and had a 15.5% market share in July. Both of those figures were down from June, when the operator had $14.8 million in revenue and a 16.5% market share.

Revenue Grows in July for Rush Street, Golden Nugget and Wynn

The 11 other online casino operators in Michigan accounted for nearly 31.5% of the market in July, up from about 28% in June. Their combined revenue was $28.9 million in July, up about 15% from June, when collectively they grossed $25.1 million.

Rush Street, Golden Nugget and Wynn, which are all considered mid-tier operators in the state, all grew their revenue and market share in July.

Rush Street saw its revenue increase to $6.8 million and its market share rise to 7.3% in July, up from $6 million and 6.7% in June. Golden Nugget grew its revenue to $5.3 million and its market share to 5.7%, up from $4.3 million and 4.9% in June. Wynn grew to $5 million in revenue, up from $3.9 million in June. Wynn’s market share also increased to 5.4%, up a whole percentage point from June.

FireKeepers, owned and operated by the Nottawaseppi Huron Band of Potawatomi, surged to $1 million in revenue and quickly grabbed 1.1% of the market. The month prior, the newest operator in the state reported just under $12k in online revenue—effectively grabbing very little of the market.

Parx Interactive and PointsBet, which joined the market in April and May, respectively, also grew their income and market share in July. Parx brought in $833k, up from $585k, while PointsBet took in $574k, up from $515k. William Hill—a brand recently acquired by Caesars Entertainment that could disappear in the US after a rebranding by Caesars—grew its revenue to $297k, up from $173k in June.

But July wasn’t a good month for all of the smaller operators. FoxBet/PokerStars, Penn Sports/Barstool and Twin Spires each saw their revenue decline in July. The operators grossed $3.1 million, $2.7 million and $1.3 million in July, but the totals were down from $3.3 million, $2.8 million and $1.4 million in June, respectively.

Sports Betting Down Sharply, But NFL Season Arriving Soon

MGCB data show online sports betting revenue fell nearly 23% to $19.6 million, down from $25.3 million in June. It was the lowest month for sports betting revenue since May, when it totaled $19.5 million. Sports betting hit a record high of $32.3 million last March.

Despite the sharp decline, sports betting is expected to rebound in August with the arrival of the NFL season.

For the fourth consecutive month, FanDuel continued to be the top operator in sports betting, grossing $7.8 million in July and claiming a 40% market share. But both figures were down from June, when FanDuel grossed $10.3 million and had 40.5% of the market.

BetMGM MI, the second-place operator for sports betting, had $5 million in revenue, down from $6.1 million in June. BetMGM still managed to grow its market share to 25.5% in July, up from 24.2% in June.

DraftKings saw its revenue fall to $3.1 million in July and its market share tumble to less than 16%. By comparison, DraftKings had $5 million in revenue and 19.6% of the market in June.

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