A new state record for Michigan sports betting handle was set in December with online betting making up the bulk of the action. However, gross gaming revenue saw a dramatic month-to-month decrease after enjoying an outstanding November.
Michigan online casinos also had a terrific month, setting records for revenue and taxes collected by the state. The revenue for December was $121.8 million, up 13.2% from November’s 107.6 million. The record had been October’s $109.7 million.
Tax collected by the state in December was $22.6 million, an increase of 14% over November’s $19.8 million. The previous record was $20.3 million in October.
Michigan is coming up on its one-year anniversary of launching online sports betting in the state (Jan. 22).
Michigan Sports Betting, Dec. vs. Nov.
|Total handle||Mobile handle||Revenue (GGR)|
|Change||Up 2.86%||2.3%||Down 69%|
Here are three key takeaways from the December report by the Michigan Gaming Control Board:
New Highwater Mark
As the University of Michigan qualified for the College Football Playoffs before losing in the semifinals to eventual national champion Georgia, 34-11, on New Years’ Eve, Michigan sports bettors showed their enthusiasm by lifting the state to a new sports betting mark last month.
Michigan sports bettors wagered $514.7 million in December, eclipsing the previous record set in November of $500.5 million by 2.86%. The December handle was the second month in a row that Michigan exceeded a half-billion in total sports betting handle.
Of the total handle, $484.6 million came from mobile wagering on Michigan sports betting apps, an increase of 2.3% from November (473.8 million). Online sports wagering accounted for 94.2% of all sports bets placed.
DraftKings Michigan, partnered with tribal casino Bay Mills, had the highest online sports betting handle for the month, $120.3 million, edging out FanDuel, partnered with the MotorCity Casino, which had $119.9 million in online handle. BetMGM had $108.7 million in online sports betting handle.
Retail sports betting handle was $30.1 million, a nice jump of 12.7% from November ($26.7 million).
Revenue Tumbles in Comparison
After a strong result in November in adjusted sports betting gross revenue, Michigan’s figure for sports AGR in December declined 69% month-over-month. The December total sports AGR was $12 million compared to November’s $38.8 million.
The comparative declines were steep in both online and retail. The December mobile sports betting AGR was $10.9 million, compared with November’s $34.5 million. The December retail sports wagering AGR was $1.1 million compared to November’s $4.3 million.
Tax Collections Take a Hit
The drop in adjusted gross gaming revenue adversely impacted tax collections.
In December, the total sports betting state tax was $785,564 with $738,067 coming from online revenues and $47,497 from retail sportsbook revenues.
The December tax was down 55.5% from November’s $1,766,660 when $1,603,035 came from online and retail delivered $163,625 in taxes.