Michigan Follows Familiar Pattern of Sports Betting Decline in April

By now, it is no secret that the U.S. legal sports betting industry slumps during the spring and summer months. No NFL, no college basketball, and slimmed-down NBA and NHL schedules have led to a serious drop-off in betting handles across the country at the best sports betting apps.

We can now officially add another one of the top-10 U.S. legal sports betting states to the list of jurisdictions suffering from April double-digit declines in both handle and revenues. The Michigan Gaming Control Board came out with their April earnings report on Wednesday, and they revealed a steep drop-off in month-over-month sports betting activity.

Handle drops

The Michigan Gaming Control Board is reporting a healthy drop in sports betting handle, revenues, and tax contributions from March to April. While seemingly drastic, Michigan's sports betting decline is in line with other jurisdictions that have already reported their April financials.

Michigan sportsbooks took in $338.1 million in bets during April, which represents a 23.3% drop from the $421.6 million reported during March, when the NCAA Tournament dominated the wagering conversation. The $338.1 million is also 14.6% lower than the $396 million in bets in April 2022.

Revenues follow suit

Gross revenues for the Michigan legal sports betting scene slipped to $36.3 million in April, but boasted a respectable 10.7% hold for the state’s best sports betting sites. Revenues slid 21% from the $46 million in sportsbook profits reported in March. Year-over-year revenues for Michigan betting sites actually rose from the $32.6 million in April 2022 when the hold rate was just 8.2% for participating sportsbooks.

Tax contributions for Michigan's best sportsbooks came in at a decent $2.32 million in April, which is a modest decline from the $2.9 million in March, but a notable year-over-year increase from the $1.7 million in April 2022.

FanDuel wins the duel

In most major U.S. legal sports betting jurisdictions, it comes down to a battle between the two most successful providers on American soil for supremacy in their respective states. In Michigan, the sports betting scene was dominated by FanDuel in April with DraftKings finishing a close second. Together, the two betting behemoths made up about 59% of the overall betting activity in the state.

FanDuel was responsible for about $100 million of the overall $338.1 million April handle in the Wolverine State, with DraftKings taking in $86.2 million in bets.

BetMGM claimed the final podium spot with $55.1 million in wagers, with Caesars ($23.4 million) and Barstool ($16.7 million) rounding out the top-five performing sportsbooks.

It is likely to be a lean next few months for Michigan sportsbooks, just like it is in every other legal American state. There are zero huge sporting events throughout the summer and Detroit Tigers baseball has so far failed to carry the wagering momentum of basketball and football in the state.

Expect the Michigan legal sports betting handle to keep dropping throughout the spring and summer months but take solace in the fact that September is coming, and the NFL will inevitably provide a huge boost to Michigan's best betting sites at that time.